Cuba, a destination in decline for islanders: "We cannot send clients into the eye of the hurricane"

PalmaFor years, Cuba was one of the star destinations in the Caribbean for residents of the Balearic Islands. Its beaches, colonial heritage, culture, and close ties with Mallorcan tourism companies made it a regular choice for travel agencies. Today, however, the situation is very different. Vacation bookings to the island have plummeted, and the sector openly admits it no longer recommends it with the same confidence as before.

"Today, frankly, it is very difficult to recommend Cuba as we did a few years ago." This is how forcefully Pedro Fiol, president of the Business Association of Travel Agencies of the Balearic Islands (AVIBA), expresses himself in an analysis attributing the destination's loss of appeal to a combination of political, economic, and operational factors that have progressively deteriorated the country's image.

The turning point: United States sanctions

The turning point: United States sanctions

Although the deterioration of the destination has been going on for a long time, AVIBA places the main turning point in January 2021, when the United States re-included Cuba in the list of state sponsors of terrorism during the final days of Donald Trump's first administration. The decision had immediate effects on the European tourism market. Since then, anyone who has visited Cuba after that date cannot access the United States through the electronic system ESTA and must apply for a conventional visa.

For many travelers, this circumstance has been enough to rule out the island from their vacation plans. "Many clients do not want to complicate future trips to the United States and opt directly for other Caribbean destinations," explain industry sources.

Fiol believes that this decision directly affected one of the main drivers of the Cuban economy. "Tourism is one of the country's great sources of foreign exchange. When the arrival of visitors is made difficult, an essential part of its economy is weakened," he points out.

Shortage and deterioration of services

As Cuba was trying to adapt to this new scenario, the pandemic arrived. The closure of borders and the paralysis of international tourism caused an unprecedented drop in economic activity.

In fact, in recent years, the country has suffered a serious energy crisis marked by recurrent blackouts, lack of fuel, supply difficulties and logistical problems that have ended up affecting the quality of the services received by visitors. Added to all this are problems with air connectivity, reduction of frequencies and operational incidents that have further complicated travel to the island.

Given this scenario, AVIBA considers it complicated to recommend the destination. "We cannot lead our clients into the eye of the storm when we know that there are alternatives in the Caribbean that are much more stable from an operational, logistical, and service quality point of view," states Fiol.

Mallorcan hotel owners also lower their sails

The situation is of particular concern in the Balearic Islands because Cuba is not just any destination for the business fabric of the Islands. For more than three decades, the main Majorcan hotel chains have had a notable presence in the country and have contributed to the development of a large part of its tourism infrastructure.

Meliá Hotels International has historically been the foreign chain with the most presence in Cuba, while Iberostar has also maintained a significant presence there. The two companies have managed dozens of hotels and have been considered for years an example of the internationalization of the Mallorcan tourism sector.

However, in recent months there have been movements that reflect the growing difficulties of the Cuban market. Both Meliá and Iberostar have reduced their exposure to certain establishments and projects.

A concern that goes beyond business

Despite the strong diagnosis, Pedro Fiol insists that AVIBA's intention is not to discredit a destination with which the Balearic Islands have a historical relationship. "It is not about demonizing a destination that for decades has been a global tourist benchmark, but about explaining reality as it is," he argues.

The president of the Balearic agencies recalls that behind the tourism crisis there is also a social and human reality that affects thousands of Cuban families. "When we talk about Cuba, we are not just talking about a source or destination market. We are also talking about companies from our land that have invested resources, knowledge, and many years of work," he highlights.

For this reason, the sector's concern goes beyond booking figures or hotel profitability. What is at stake, according to AVIBA, is the country's ability to regain international confidence, attract new investments, and once again offer the guarantees that for years made it one of the most emblematic destinations in the Caribbean. "All of us who love Cuba wish that this situation can be reversed," concludes Fiol.