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Weekly UpdatesThe U.S. embargo has clearly been costly to the Cuban people, in terms of their health and well-being. Based upon the first author's firsthand, informal personal interactions with the Cuban people, including Cuban president Fidel Castro, as well as the authors' recent qualitative research in Cuba, this article contends that these past decades have fostered a deep degree of distrust between our two peoples. Despite this distrust, U.S. dollars are desired in the Cuban economy. As background, this case offers an historical chronology of Cuban tourism, including the "Special Period" following the demise of the Soviet Union. Current insight is offered into the nature and depth of distrust of the United States, based on interviews with Cuban hospitality managers. Recommendations are then offered for mitigating this problem including a call for in-depth, multifaceted basic and applied cross-cultural research to support intelligent cultural "bridge building" and joint ventures.
Keywords: international tourism; Cuba; ecotourism
Summary
The long-standing U.S. embargo on travel to Cuba has made life difficult for the Cuban people without achieving its stated purpose of regime change. Supported for many years by the erstwhile Soviet Union, Cuba turned to tourism as means for earning foreign exchange after the USSR imploded. Tourism has afforded a means for many Cubans to improve their lot, especially when their jobs allow them to collect U.S. dollars, which are a prized currency on the island. Operators from several nations are a part of Cuba's tourism industry, which is second largest in the Caribbean and chiefly attracts travelers from Canada and Europe. Left out of the island's tourism ventures are U.S.-based chains and operators, who would benefit from being able to participate in Cuba's growing tourism industry. Given the likelihood that President Fidel Castro will not return to power, the moment is ripe for American tourist interests to seek their opportunity to do business in Cuba. A particular benefit of tourism joint ventures would be restoration of trust between the peoples of Cuba and America, a trust that has been impeded by political activities on the part of both governments.
Introduction
Fifty years after revolution and subsequent embargo, change is in the air for Cuba. The direction of that change hangs heavily on the policy taken by the United States as Cuba's governance inevitably changes. After a long dry spell, the tourism and hospitality industry constitutes Cuba's dominant source of employment and foreign exchange earnings (Cervino and Cubillo 2005; Miller and Henthorne 1997). Currently, Cuba is the second most popular tourist destination in the Caribbean even though travelers from the important U.S. market are forbidden to travel there.
Cuba's longtime leader, Fidel Castro, is gravely ill as of this writing. Whether he will return to power is in serious question. The overriding issue regarding Cuba is what effect a change in government might have with regard to U.S. policy.
With regard to travel and tourism, what should be the role of the U.S. hospitality industry as we seek to meet Cuba at this time of transition? What should be the role of our political leaders as we strive to move beyond current policies? This case study seeks to address these and other related issues as we rapidly approach an era of unprecedented tourism activity.
To begin our discussion, we propose that the long-term interests of both the United States and the U.S. tourism industry are best served by nurturing economic development and reform, not in choking off this reform via the continuation of an embargo (Sweig 2007). Enacted decades ago, the embargo has clearly been costly to the Cuban people, in terms of health and well-being. Based upon the first author's firsthand, informal personal interactions with the Cuban people, including Cuban president Fidel Castro, as well as our recent qualitative research in Cuba, we contend that these past decades have fostered a deep degree of distrust between our two peoples. Certainly this distrust has been exacerbated and intensified due to the embargo. Furthermore, this distrust of the "Evil Norte Americanos" has (inadvertently) propped up the government of Fidel Castro, rather than having the reverse effect. This distrust has provided Castro with a soapbox forum from which to espouse vilification of the United States--a message that, for decades, has been embraced by the country and, not incidentally, cemented his power.
While attempted Cuban reform is desirable, such reform efforts taking place in the context of distrust of the United States and U.S.-imposed economic hardship does little to promote a mentality among the Cuban people in which change would reflect U.S. values and provide opportunity for U.S. businesses. It is unrealistic to believe American business interests will become the dominant business interests in Cuba, as they were in 1957--at least in the short run (Miller and Henthorne 1997). Too many worthy competitors have already established themselves and have both the respect and trust of the Cuban government, businesses, and citizens. Our neighbors to the north and south, Canada and Mexico, are two of the largest investors in Cuba, having realized the potential economic payoff and positioned themselves accordingly.
However, the potential exists for the U.S. hospitality industry to play a substantial role in the reforms to take place in Cuba. The starting point would be allowing our citizens to travel and spend money in Cuba. In this way, we would bring the "American" lifestyle to the heart and soul of Cuba--its people. Rather than diplomatic actions, we contend this approach necessitates a "grassroots" effort to cultivate trust between our peoples, in the context of service providers and customers. In so doing, the last vestiges of the cold war can be, once and for all, "thawed."
By its nature, tourism serves as an international meeting vehicle by bringing together individuals from different countries, advocating diverse (and many times competing) political ideologies and religions. Tourism brings together individuals who speak different languages and live diverse lives. Tourism is a major source of intercultural contact. Tourists and tourism can serve as powerful change agents on a society's culture (Costa 2005). Indeed, the sociocultural structure of many countries has been changed substantially under the influence of tourism (Dogan 1989). Clearly, a strong infusion of U.S. tourists to Cuba, coupled with Cuban-U.S. joint hospitality business ventures, would be key antecedents to trust building.
The time is coming for U.S. hospitality business interests to present a strong consensus on this issue to stir the bureaucratic establishments into action. We contend that, upon reflection, people of all political persuasions will see this market-based approach as the most pragmatic course of action to benefit U.S. business interests and long-term relations between the United States and Cuba.
As the basis for the conclusions we just offered in this case, we will chronicle, with data, the rise and fall (and rise again) of tourism in Cuba, with the rejuvenation minus the all-important U.S. market. We then forward qualitative data, which, though anecdotal, we feel further substantiate our contention of the level of distrust among the Cuban people and business decision makers associated with perceived intentions of U.S. business interests. We provide insight into the contradictions inherent in this distrust, as it influences current perceptions on the part of Cubans and would have considerable bearing if U.S. firms were involved in Cuban hospitality operations. In addition, we offer key points that substantiate why it behooves U.S. hospitality interests to deal with Cuban tourism development in the context of "liberated" market forces, free of the embargo and other restrictions. Finally, we substantiate the value of joint-venture sponsored tourism initiatives (e.g., eco-tourism) anchored by cross-cultural consumer research.
A Historical Perspective on Cuban Tourism
While Cuba has been an object of American fascination and allure since the American Revolution, the "Golden Age" of Cuban tourism can trace its roots to that early-twentieth-century American experiment in morality: Prohibition (Schwartz 1997). As America was struggling to become sober, those with the desire and means could sidestep this newly imposed regime and get away to that "Americanized" island country of Cuba. Here they would be welcomed with fashionable rum drinks, high-potency Hatuey beer, powerful hand-rolled cigars, fast-paced casino gaming, and readily available companionship. The Hotel Nacional, completed in 1930, served as the premier destination on the island (see Exhibit l).
By the 1950s, Americans had begun to adopt trends and attitudes with Caribbean (i.e., Cuban) roots into their everyday lives. Rum drinks were experiencing resurgence in popularity, and daiquiris and mojitos were the drinks of the day. Cuban music was well known and popular, driven by Ricky Ricardo's orchestra and I Love Lucy (the most popular program on television). Cuban casinos served as an outlet for the growing American fascination with gambling (Miller and Henthorne 1997). These factors contributed heavily to the Caribbean region's growth rate of approximately 10 percent yearly throughout the decade. Cuba controlled the largest single share of the Caribbean tourism market. More than 20 percent of all visitors to the Caribbean region traveled to Cuba, far ahead of other regional competitors such as Jamaica. Of the visitors to Cuba, more than 85 percent were from the United States (Villalba 1993).
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But by the beginning of 1958, tourism to Cuba was in question, with rumblings of renewed guerilla fighting in the mountains led by a young and charismatic Fidel Castro and aided by the idealistic, cool, and self-assured Ernesto "Che" Guevara, and coupled with the open corruption and decadence on the part of the Batista regime. By New Year's Eve 1958, word spread that Batista was planning to flee the country and was taking with him a sizable portion of the Cuban monetary reserve. Shortly thereafter, Fidel Castro effectively assumed control of the country.
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