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The Cuban regime announced this Thursday a package of economic transformations that includes one of the largest openings to private and foreign capital in the recent history of national tourism.
The measures, presented by Prime Minister Manuel Marrero Cruz during an extraordinary session of the National Assembly of People's Power (ANPP), are part of the so-called Axis 17: Transformations in the tourism sector and include new investment modalities, real estate development, international franchises, the opening of private agencies, and the flexibilization of businesses related to the tourism industry.
The proposal is part of a broader economic reform program initiated by the Cuban government, which acknowledges the need to attract capital, generate foreign currency income, and revitalize strategic sectors amid the deep economic crisis the country is experiencing.
New modalities of tourism investment
Among the most significant changes is the expansion of the types of business operations allowed in the sector.
Until now, the main foreign participation schemes were limited to joint ventures and hotel management contracts.
With the new proposal, the Government aims to additionally include:
-Leases.
-Real rights of usufruct with a burdensome nature.
- Grants of areas with existing or developing assets.
-Sale of properties, subject to approval on a case-by-case basis.
These modalities will be open not only to foreign investors but also to Cubans residing abroad and within Cuba.
According to the official proposal, the goal is to expand avenues for securing funding and to accelerate tourism development projects that currently lack resources.
Special zones to attract investments
Another announced measure involves incorporating specific areas of the country into the Business Opportunities Portfolio as Economic Development Zones, where special regimes would be applied to facilitate investments and tourism projects.
Although the authorities did not specify which areas will be targeted, the plan aims to provide specific incentives to attract both national and foreign investment.
-Total opening in cays and heritage areas
The government also proposes to allow all forms of tourism business in: the keys; Old Havana; Trinidad, and other destinations deemed strategic.
The measure represents a significant easing compared to previous policies, particularly in heritage areas where state control had traditionally been stricter.
Expansion of real estate businesses
One of the most notable announcements is the authorization to develop real estate projects linked to tourism in all tourist areas of the country.
Additionally, it is proposed to expand this type of business to certain urban areas of Havana and other Cuban cities.
The proposal paves the way for new residential developments and tourist complexes aimed at both foreign visitors and investors interested in the real estate market linked to tourism.
Tourist marinas open to joint ventures and leases
The document also outlines new methods for the exploitation of tourist marinas.
Authorities propose allowing mixed enterprises and leasing contracts for the management and operation of nautical facilities, a segment regarded as having high potential for attracting international tourism with greater purchasing power.
Tax benefits for ecotourism and specialized tourism
Among the measures aimed at diversifying the tourism offer is the creation of tax and fiscal incentives for projects related to:
- Ecotourism.
-Nature tourism.
- Specialized tourism.
The government maintains that these benefits aim to attract new investments and promote a more sustainable and diversified tourism development.
Online corporate bank for tourism
The proposal includes the establishment of a digital corporate bank specialized in the tourism sector, with financial connections abroad and the ability to promote services related to virtual assets.
This is one of the most innovative initiatives within the presented package and reflects the official interest in modernizing financing mechanisms and international payments related to tourism.
End of the monopoly in car rentals
Currently, vehicle rental in Cuba is primarily concentrated in two state-owned companies.
The reform proposes to open this activity to:
-Other state-owned companies.
Foreign investment.
Non-state management methods.
The measure aims to increase the supply and improve a service that has faced issues of availability and high prices for years.
Private and foreign travel agencies
Another significant change is the opening of travel agency activities.
The authorities propose to authorize:
Joint ventures.
-100% foreign companies.
-Non-state management methods.
This would allow for a much broader participation of private actors in the marketing of packages and tourism services within Cuba for the first time.
Tourist guides and private sales agents
The proposal also includes authorizing the private practice of:
-Tourist guides.
- Tourist sales agents.
Although the activity will require prior authorization due to the level of specialization needed, it represents a new opportunity for independent workers connected to the sector.
Creation of destination management organizations
The government also proposes to approve the role of local destination managers, responsible for coordinating and integrating the various economic stakeholders present in a tourist area.
According to the proposal, these managers would help ensure the functioning of mixed governance models among state, private, and foreign entities.
New tax for tourists
Among the measures under consideration is the creation of a special tax or tourist contribution for those who visit certain tourist hubs.
The resources collected would be allocated to the maintenance, sustainability, and promotion of those destinations. Currently, this tax does not exist in Cuba.
Franchises of Cuban brands abroad
The tourism strategy also includes the international expansion of iconic Cuban brands through the franchise model.
Among the examples mentioned by the Government are:
-Casas Cuba.
-Casas del Habano.
La Bodeguita del Medio.
- The Floridita.
-Tropicana.
The intention is to use these brands as an additional source of foreign currency income and as a tool for international promotion.
An economic turn that reveals the exhaustion of the model
Beyond the official discourse on the update of socialism, the announced measures reflect an implicit acknowledgment that numerous restrictions imposed over decades have ultimately restricted the growth of the tourism sector itself.
The authorization of real estate businesses, private travel agencies, franchises, independent guides, joint ventures for marinas, and new investment modalities entails the adoption of mechanisms that had been rejected or severely restricted by Cuban authorities for many years.
However, several analysts might question to what extent these transformations will succeed in attracting the necessary volume of capital in a context marked by a lack of liquidity, the perceived legal insecurity among many investors, and the history of regulatory changes on the Island.
Although the proposals create unprecedented opportunities for private and foreign participation, their effectiveness will depend on the speed with which they are translated into concrete laws and the state's ability to provide stable long-term guarantees.
Additionally, the announcement of this opening comes after years of multi-million dollar investments in state hotel infrastructure that have not managed to reverse the decline in international tourism or offset the deterioration of other productive sectors.
The decision to ease access to the tourism business can be seen as an acknowledgment that the current centralized model has not achieved the expected results, and that the country needs to turn to market-driven approaches and private capital in an effort to salvage one of its main sources of foreign currency revenue.
The challenge for the authorities will be to demonstrate that this openness will not be limited to political announcements.
Investors, entrepreneurs, and Cubans both on the Island and abroad will closely watch whether the promises of greater economic freedom, broader property rights, and new business opportunities come to fruition or, as has happened in previous processes, encounter bureaucratic obstacles that limit their actual impact.
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