Cuba’s private sector suffering from a lack of tourists

Women watch outside a window as Cuban soldiers (not seen) clean the streets with a bleach solution in Havana, Cuba. (AP)
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Updated 20 April 2020
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Cuba’s private sector suffering from a lack of tourists

  • Omnipresent in tourist guides, it’s a must stop for many visitors, including stars such as Beyonce, Madonna or Pedro Almodovar, whose photos adorn the walls

HAVANA: Havana is a ghost town. The American convertibles swooned over by tourists are back in the garage, while most restaurants and cafes are closed.
Cuba’s private sector has been suffering since the island nation closed its borders over the coronavirus pandemic.
In the charming old building where the 1993 comedy “Strawberry and Chocolate” was filmed, a spiral staircase leads to the deserted La Guarida, the most famous privately owned restaurant, or “paladar,” in Cuba.
“We decided to close the restaurant from March 15,” nine days before Cuba’s authorities imposed their first virus-linked restrictions, said owner Enrique Nunez.
By Saturday, the country of 11.2 million people had close to 1,000 coronavirus cases and 32 deaths.
“I have friends with restaurants in Spain, they told me what was happening, about the danger, the difficulty of continuing to serve customers in these conditions,” Nunez told AFP.
His restaurant usually serves 200 people for each sitting.
Omnipresent in tourist guides, it’s a must stop for many visitors, including stars such as Beyonce, Madonna or Pedro Almodovar, whose photos adorn the walls.
“That was the main reason we took this decision. We’re a very attractive site, many people arrive in Havana with the desire to experience La Guarida.”
What that meant was that “we were on the front line” of potential coronavirus infections.
In Cuba, the private sector has little by little managed to make its mark over recent years: It now employs almost 635,000 people, or 14 percent of Cuba’s work force.
These Cubans rent out rooms, run small restaurants or hair salons, among other activities.
“Many private enterprises were built on tourists, because no Cuban is going to go to a restaurant and spend $100 on a meal,” said economist Omar Everleny Perez.
So they quickly sensed the danger: Two days after the borders were closed to nonresidents — a measure subsequently expanded to all arrivals — 16,000 private workers asked for their licenses to be suspended, according to the Labor Ministry, which temporarily exempted them from taxes.

FASTFACTS

● Cuba’s private sector has little by little managed to make its mark over recent years: It now employs almost 635,000 people, or 14 percent of the country’s work force.

● The Cubans rent out rooms, run small restaurants or hair salons, among other activities.

By Wednesday that figure had risen to 119,000, around 19 percent of the private workforce.
This health crisis could not have come at a worse time, on the back of two bad years when Cuban businesses suffered under the increased sanctions imposed by the administration of US President Donald Trump.
“The private sector was already struggling, especially in Havana, after the American cruise ships stop coming” from June 2019 due to new sanctions, said Perez.
It meant that in 2019, the number of tourists dropped by 9.3 percent to 4.3 million.
Over recent years, Americans had become the second largest group of tourists after Canadians, thanks to the thawing of tensions with the US since 2014, under the Barack Obama administration.
In January and February, tourist numbers were down 16.5 percent on the previous year, with a drop of 65 percent for Americans.
The sector, the second largest revenue generator on the island nation, was worth $3.3 billion in 2018.

 


Closing Bell: Saudi main index climbs to 10,485 

Updated 21 December 2025
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Closing Bell: Saudi main index climbs to 10,485 

RIYADH: Saudi Arabia’s Tadawul All Share Index edged up on Sunday, gaining 34.32 points, or 0.33 percent, to close at 10,484.59. 

The total trading turnover of the benchmark index stood at SR2.59 billion ($690 million), with 168 listed stocks advancing and 87 declining. 

The Kingdom’s parallel market Nomu also gained 100.37 points to close at 23,454.65. 

The MSCI Tadawul Index advanced by 0.13 points to 1,377.44. 

The best-performing stock on the main market was Nama Chemicals Co., whose share price increased by 9.98 percent to SR22.38. 

The share price of Al Masar Al Shamil Education Co. rose by 9.15 percent to SR23.85. 

Saudi Paper Manufacturing Co. also saw its stock price climb by 8.42 percent to SR57.95. 

Conversely, the share price of Canadian Medical Center Co. dropped by 6.37 percent to SR6.03. 

The stock price of Kingdom Holding Co. also declined by 3.16 percent to SR8.28. 

In the parallel market, Alfakhera for Mens Tailoring Co. was the top performer, with its share price advancing by 16.40 percent to SR8.80. 

On the announcements front, Theeb Rent a Car Co. said it had signed a long-term vehicle leasing services contract valued at SR110.4 million with Hungerstation Co. 

Under the deal, Theeb will lease 2,000 vehicles to HungerStation for a period of four years starting from 2026, according to a Tadawul statement. 

The statement added that the vehicles will be delivered in batches within the first six months from the contract start date, taking into consideration global logistical circumstances and procedures beyond the control of both the agents and the company. 

The contract is expected to have a positive impact on the company’s financials from the first quarter of 2026. 

The share price of Theeb Rent a Car Co. declined by 0.79 percent to SR37.80.