Sustaining Tourism in Cuba : A Qualitative Examination of Perceived Entrepreneurial Climate Elements among Tourism Industry Professionals

Abstract

As the Cuban government seeks to develop a strong private sector and alleviate stress to provide employment for its citizens, creating a climate conducive to private enterprise formation warrants immediate attention. Because tourism is Cuba's biggest industry, many residents may seek to create businesses within this industry as state employment becomes less of a guarantee. Recent trends in tourism show that travelers are demanding increasingly innovative and immersive experiences that benefit local communities and natural environments. However, Cuba is becoming dependent upon low-cost packaged mass tourism, primarily in the destinations of Havana and Varadero, leading to a recent decrease in average visitor expenditure. Allowing Cuban entrepreneurs to work together to develop and introduce creative tourism products may convince tourists to stay longer, spend more money, and visit again in the future. The success of entrepreneurs is vulnerable to a number of external conditions in the environment. These conditions, such as physical infrastructure, financial infrastructure, governance, culture, and human capital, are referred to as the "entrepreneurial climate." Cuba has rich natural, cultural, and social capital resources; however, other conditions within Cuba's entrepreneurial climate currently limit residents' ability to create tourism-related enterprises. Building on previous research, this study examines these entrepreneurial climate conditions to determine which factors are currently limiting or, in some cases, encouraging entrepreneurship related to tourism in Cuba.