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CUBA: ISLAND'S BOOMING TOURIST INDUSTRY

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• published: 21 Jul 2015
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Eng/Span/Nat Tourism is one of Cuba's booming industries. But new US sanctions against the island may devastate the industry which has brought much needed hard currency to Cuba. The sanctions are designed to deter foreign investment. But investors believe they will have little or no effect on their businesses. The U-S Helmes-Burton bill comes at a bad moment in Cuba. Tourism is booming and foreign investment has sky rocketed to two-thousand (m) million dollars. Washington's new sanctions are aimed at deterring foreign investment, making life even tougher in Cuba and speeding up the departure of its longtime communist leader Fidel Castro. The bill was overwhelmingly approved by Congress in response to Cuba's downing of two American civilian planes two weeks ago. Under the bill, Americans can sue foreign governments, companies and others who profit from any property seized during Castro's 37-year rule. Foreign investors dealing with confiscated property are barred entry into the U-S. However, foreign investors, especially hotel owners, say the U-S cannot pressure them to leave the island. They also contend the bill will have little or no effect on tourism. Some American tourists say the only people being hurt by the sanctions are would-be investors in the U-S: SOUNDBITE: (English) "If they (US) could settle down things between Cuba then they could probably build their own hotels and stuff down here and they could get in on some of this and you know, enjoy it, but at the pace they're going they're missing in a lot." SUPER CAPTION: American tourist Despite the hotel owners' brave words, evidence of the embargo's impact abounds. Many old buildings are vacant or in disrepair. Prostitutes solicit business in the tourist district, despite the government's attempts to crack down on prostitution. Nevertheless, Cubans have grown accustomed to years of sanctions and the struggle for survival. Dollars - once a luxury of diplomats and tourists - are now available to anyone with relatives in the U-S willing to evade the U-S ban on sending remittances. And some earn an illegal income from tourism: SOUNDBITE: (Spanish) "What we do is rent our house to people coming from other places, or we, for example also cook and have an illegal restaurant and that's how we make money. Because, for instance, I'm a doctor, I practice my profession but I just earn about 14 dollars per month which is not enough." SUPER CAPTION: Havana resident The new U-S sanctions on top of the old embargo may scare new investors. But those already reaping profits from the island's booming tourist industry insist they are unlikely to take a step backwards. At Varadero beach, Spanish investors are building three new hotels -- a clear sign that the new sanctions may not necessarily cause further damage to the island's economic health. And if the sanctions do not deter foreign investment, many say they're unlikely to force any drastic change of government. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/931647fe3c1b1f48c8c7a32d8bff9824 Find out more about AP Archive: http://www.aparchive.com/HowWeWork