Foreign Investment
Foreign investment in the Cuban tourism sector has increased steadily since the tourism drive. This has been made possible due to constitutional changes to Cuba's socialist command economy, to allow for the recognition of foreign held capital. By the late 1990s, twenty five joint foreign and domestic venture companies were working within Cuba's tourist industry. Foreign investors and hoteliers from market based economies have found that Cuba's centralized economy and bureaucracy has created particular staffing issues and higher costs than normal. An additional factor cited by foreign investors is the degree of state involvement at the executive level, which is far higher than average.
The influx of foreign capital, and associated capitalist management methods, led outside observers to question whether Cuba's socialist system could survive the resulting transformation. Fidel Castro responded in 1991,
"In the conditions of a small country like Cuba... It is very difficult to develop... relying on one's own resources. It is for this reason that we have no alternative but to associate ourselves with those foreign enterprises that can supply capital, technology, and markets."
Castro was also of the belief that despite the undeniable influence of "capitalist ideology", socialism would prevail both in Cuba and the wider "battle of ideas".
Read more about this topic: Tourism In Cuba
Famous quotes containing the words foreign and/or investment:
“I sincerely hope that the incoming Congress will be alive, as it should be, to the importance of our foreign trade and of encouraging it in every way feasible. The possibility of increasing this trade in the Orient, in the Philippines, and in South America is known to everyone who has given the matter attention.”
—William Howard Taft (1857–1930)
“There is something fascinating about science. One gets such wholesale returns of conjecture out of such a trifling investment of fact.”
—Mark Twain [Samuel Langhorne Clemens] (1835–1910)