SAN LUIS POTOSÍ, Mexico – Once again, amidst the severe crisis of the healthcare system that deprives Cubans of adequate medical care, and amidst the dire situation in which retirees and vulnerable groups live, the Cuban government has once again invested more in the tourism sector and in business services than in Public Health, Social Welfare, and Education.
According to an analysis provided by economist Pedro Monreal, investments in Cuba remain very uneven, and one third are concentrated in activities primarily centered around tourism.
Although the specialist acknowledges that there has been a decrease in investment in tourism, which hit a record of 47.6% in 2020, it still accounts for more than one third of the government’s investment.
Public Health and Education show minimal investment figures, but they are not the only areas to be concerned about, as agricultural investment is also extremely low.
“In the midst of a situation of food insecurity, it is concerning that the relative total of agricultural investment remains stagnant at a level that is 11 times lower than the relative total of investment associated with tourism,” wrote Monreal, based on data on investments in 2023 from the National Office of Statistics and Information (ONEI, by its Spanish acronym).
Investment in tourism continues to be prioritized over investment in the manufacturing industry, which would enable linkages in production.
However, the aforementioned do not show numbers as low as key activities such as public health, education, and construction, all with numbers below 2%. Even the area of “science and technological innovation” is the third activity to get the lowest investment (0.5%).
“With a low investment rate of 15% in 2022 (measured as a percentage of gross capital formation in GDP) and with a very distorted investment pattern, the government’s claims about ‘reinvigorating’ the economy and promoting development are illusory,” Monreal concluded.
The expert himself had previously pointed out that hotels continued to be built in Cuba when the country shows a low occupancy rate.
In recent years, the increase in hotel investment at the expense of the recovery and development of sectors such as Public Health and Education, has been highly criticized by Cubans both inside and outside the Island. The regime has tried to justify the move with the need to access foreign currency. However, despite the excessive hotel investment, tourism on the Caribbean island continues to struggle.
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