Cuba | Inviting “New Actors” to Replace Hotel Chains Trying to Restructure its Tourism Sector

Faced with a collapse in foreign tourism and the exit of major international hotel chains, the Cuban government is trying to restructure its tourism sector by inviting “new actors” to lease and manage state – owned hospitality and lodging infrastructure.

The President of Cuba, Miguel Díaz Canel, announced that the government will allow new modalities of investment in tourism “with new actors” to replace the hotel chains that have totally or partially left the country. However the Cuban President did not explain who those new managers were stressing that the country can not think at this time only of hotel chains.

In total some 50 hotels owned by the military hotel company, in all almost all cases with the Gaviota brand, have been left without a flag or marketers.

The Cuban President was ambiguous or even obscure about what he has in mind and he explained that work is being done on how to manage the real estate business in the field of tourism with new modalities and with other actors that are now those who have traditionally been in those spaces, adding that in the coming weeks the proposal will be known.

In the world, in addition to hotel companies, there are not many mechanisms for marketing tourist accommodation,  except the Airbnb model, which is controlled by U.S. companies and would hardly have access to this Cuban business.

The government is opening the sector to international franchises, private foreign investors, Cubans living abroad, and local private cooperatives. These entities and individuals can now invest in and manage real estate, excursions, and previously restricted zones.

Municipalities and local etate companies are receiving autonomy to directly engage in foreign trade and establish independent contracts.

The departure of European operators like Meliá and Blue Diamond left the military - run conglomerate GAESA which effectively controls the majority of the island’s hotels without its traditional operational partners.

This tourism pivot is part of an emergency 176 –to save  point economic package designed to save the struggling economy, with the government even exploring 100% foreign ownership in certain sectors.

Independent economists doubt that the fledgling domestic private sector can immediately replace the scale and supply - chain linkages of major hotel chains.

Link

https://www.preferente.com/noticias-de-hoteles/cuba-nuevos-actores-en-lugar-de-cadenas-hoteleras-350317.html

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