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.

 


UAE non-oil business growth at 1-year high in February: PMI report

Updated 04 March 2026
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UAE non-oil business growth at 1-year high in February: PMI report

RIYADH: The growth of the non-oil private sector in the UAE ticked up to a 12-month high in February, driven by rapid increases in business activity and new work orders, an economic tracker showed.

In its latest Purchasing Managers’ Index report, S&P Global revealed that the UAE’s PMI rose to 55 in February from 54.9 in January.

Any PMI reading above 50 indicates expansion, while a reading below 50 reflects contraction.

The upturn of the non-oil private sector in the UAE aligns with the broader trend observed in the Gulf Cooperation Council region, where countries, including Saudi Arabia, are pursuing economic diversification efforts to reduce reliance on crude revenues.

In January, the Kingdom’s PMI stood at 56.3, the highest in the region, while Kuwait recorded a reading of 54.5.

“The UAE PMI signalled the strongest growth in non-oil business conditions for a year in February, with output increasing rapidly in response to strong inflows of new work. So far, the data points to an encouraging picture for the domestic economy in the first quarter of this year,” said David Owen, senior economist at S&P Global Market Intelligence.

According to the report, stronger output among non-oil sectors was driven by higher demand, successful contract wins, and growth in key sectors including construction, real estate, logistics, and technology.

Additional factors that contributed to this growth include rising tourist arrivals, the expansion of e-commerce channels, and growing demand for AI-related products.

While international orders also contributed to the expansion of the non-oil sector, the increase in export sales remained modest, suggesting that sales growth was mainly driven by domestic demand.

The analysis highlighted that employment numbers rose modestly in February, marking the largest uplift since last November.

UAE non-oil businesses successfully increased their inventories of purchased inputs for the second month running, supported by another rapid improvement in supplier delivery times.

Regarding the future outlook, non-oil firms in the UAE expressed optimism, although the level of confidence declined from the recent high in January.

“The outlook is positive, as demand has continued to pressure business capacity, suggesting additional expansions in output and employment may be necessary,” added Owen.

In the same report, S&P Global revealed that Dubai’s PMI slipped to 54.6 in February from 55.9 observed in January.

Rates of output and new order growth lost momentum, but remained sharp overall, with firms highlighting increased opportunities and new projects.

The release highlighted that demand was also lifted by various factors, including marketing activities, AI adoption, population growth and increased tourism.