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Pan American experiences

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Cuba

CUBA ------------------------------------------673[FEATURE]

Grupo Iberostar

Um primeiro passo para a gestão hoteleira estrangeira em Cuba

By Jazmin Agudelo for Ruta Pantera on 11/20/2025 3:29:32 PM

In 1993, as Cuba navigated the turbulent waters of the Special Period following the collapse of the Soviet Union, a discreet yet momentous event marked the beginning of a new era for its tourism industry. Grupo Iberostar, the Mallorcan hotel chain founded in 1986 by the Fluxá family, signed a management contract with the Sierra Maestra Hotel, located in Havana. This agreement not only represented the first foreign hotel management venture on the island but also laid the foundation for transforming Cuban tourism into a key economic pillar. Tourism Is Now Cuba’s Lifeline The context was critical. Cuba’s economy had lost 85% of its imports and exports with the collapse of the socialist bloc (Mesa-Lago, 2000). The government, led by Fidel Castro, was urgently seeking alternatives. Tourism, which in 1990 generated barely 250 million dollars, emerged as a lifeline. Between 1990 and 1995, tourism revenues grew by 400%, rising from 243 to 1,100 million dollars (Cerviño & Bonache, 2005). Iberostar arrived at the perfect moment, bringing experience in Caribbean destinations and a management model that prioritized quality and sustainability. The Sierra Maestra Hotel, originally built in 1975 as part of the state-owned Cubanacán chain, was chosen. With 400 rooms and views of Havana’s Malecón, the property needed a major overhaul. Iberostar invested in infrastructure, staff training, and international standards. Cuban employees—many with technical training but limited experience in luxury hospitality—received instruction in Palma de Mallorca. This exchange not only improved service but also introduced concepts such as “all-inclusive,” revolutionary in Cuba at the time. Jump Start this Economy! The arrival of Iberostar triggered a domino effect. In 1994, the government enacted Foreign Investment Law 77, facilitating joint ventures and management contracts. Between 1993 and 2000, hotel capacity grew from 25,000 to 35,000 rooms, with 60% operated by foreign companies (Espino, 2001). Chains such as Meliá, Sol Group, and Accor followed the path opened by Iberostar. By 1998, tourism accounted for 43% of the country’s gross foreign exchange earnings, surpassing sugar as the main source of revenue. The social impact was equally significant. By 2000, the hotel industry generated 100,000 direct jobs and 300,000 indirect ones (National Office of Statistics, 2001). In Havana, the average salary in tourism tripled that of the state sector. Iberostar workers, earning tips in convertible currency, gained access to goods previously out of reach. However, this boom also created inequalities: while the tourism sector prospered, the rest of the economy languished.
A Smart Hotel in Cuba? Iberostar’s model also introduced environmental innovations. In 1995, the chain implemented its first waste-management program at the Sierra Maestra, reducing water consumption by 25% through recycling systems. This initiative, pioneering in Cuba, influenced later policies by the Ministry of Tourism. Today, Iberostar operates 18 hotels on the island with ISO 14001 certifications, demonstrating that sustainability can be profitable even in complex contexts. Three decades after that first contract, Iberostar’s legacy extends beyond the numbers. The company not only opened the door to foreign investment but also professionalized a sector that now receives more than 4 million visitors annually. The Sierra Maestra Hotel—renamed Iberostar Parque Central in 1999 after a multimillion-dollar renovation—symbolizes this transformation: from an outdated state-run property to a five-star hotel competing with the best in the Caribbean. The Early Bird Gets the Worm The history of Iberostar in Cuba illustrates how a business decision can catalyze structural change. In a country where private property was prohibited, foreign management proved that modernization was possible without relinquishing sovereignty. This delicate balance—between controlled openness and ideological preservation—continues to define Cuba’s tourism policy today.

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