Cuba will increase its number of hotel rooms to as many as 23,000 by next year from 13,357 in 1991. Ernest Preeg, in a 1993 publication from the Center for Strategic and International Studies, puts forth more conservative estimates. No matter which estimate is employed, it is clear that earnings from this sector recently have increased significantly. Using the more conservative estimate for 1992, this sector has grown 46 percent in the past three years. This growth is more significant given the overall decline in earnings currently faced by other Caribbean countries.
Statutory law restricts U.S. tourist expenditures in Cuba.
The CAN Regulations imposed a complete embargo on any direct or indirect financial or commercial transaction with Cuba or Cuban nationals. Easing the U.S. travel restrictions likely will significantly increase the number of tourists visiting the island. Ernest Preeg estimates that in the fifth year of a post-Castro Cuba, four million tourists will visit the island. The 500,000-600,000 tourists visiting Cuba last year may already be straining Cuba's environment. While information on tourism's impact on the Cuban ecology is not readily available, Cuban scientists note that on the north coast, the government is pushing to build beach front hotels in prime habitat regions for dozens of unique birds, rodents and iguanas.