03/09/10, 05:34:21 EDT

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Cuba tourism industry sagging

fin24.co.za

Tourism, for 15 years the locomotive of the otherwise weak economy, faces erosion from within Cuba and without.

In 2006 tourist arrivals fell 3.6%, "falling short of plans to grow by almost 8% and reach 2.5m foreign tourists on our streets and beaches."

Only 2.2m showed up, the weekly Cuban magazine said in an article dated May 8.

The number of European visitors slid during the 2007 December-April peak season. Canadians, most numerous visitors to the Caribbean island, grew 1.6% compared with 2006.

The magazine blamed the slowdown in part on US restrictions on travel to Cuba, including Washington's tightening of visits by Cuban-Americans to their families.

Bohemia said this cut visits to Cuba by "tens of thousands," reducing overall visits from North America by 7.5% last year.

"Topping it all, last year US investment companies took over a cruise ship line and a Spanish tour operator ... which were automatically prevented from travelling to the island," it said.

Other factors dampening visitor levels include the high cost of oil, European tourists' preference for short trips, and the appreciation of Cuban peso in 2004, which cut hotel investment.

"Foreign tour operators and Cuban hoteliers noted a drop in the quality of services in the sector."

 Printable Version  | published May 21, 2007