Varadero Research Paper

Known for its white sandy beaches, its crystal blue waters and peaceful ambiance, Varadero, Cuba is one of the most famous beach destinations with over 50 hotels along the coastal waters. With activities such as Scubalibre snorkeling, coral beaches, City tours, Shark diving, and it’s very famous Saturno cave, Varadero is a delightful city to add to your itinerary. Besides the fun activities listed, the cuban cuisine is a perk of visiting this Island paradise.
Political Environment
The Cuban Constitution is an Independent Socialist Republic that is controlled by Fidel Castro as head, and his brother, Raul Castro as vice-president. There are two executive bodies which consist of the Council of Ministers and the Council of State. The commander

in chief is communist leader, Fidel Castro, and his brother serves as the vice president as well. The leaders are elected by the National Assembly which is the legislative body of the Cuban government. Though their structure is very Bureaucratic, there are agencies such as the Central Planning Board that focus on economic planning. After this agency was created in 1933, in efforts to decentralize, different sectors of the economy became the responsibility of various ministerial bodies, including the Ministry of Tourism, the Ministry of Science, Technology, and the Environment, the Ministry of Industry, the Ministry of Sugar Planning, and the Ministry of Foreign Investment and Economic Cooperation, among others. (Nations Encyclopedia, web). The wages would be very low given that the government controls 75 percent of the work force. Internet access is controlled by the government, which would create certain limitations for hotel keepers.
Barriers to entry
This past January, President Obama eased the embargo with Cuba making it easier for Americans to travel there and allowing the flow of money to get to the Cuban population without as many restrictions. Credit cards are now permitted on the Island thanks to this agreement. However, As Americans, there are restrictions on investing in Cuba due to the U.S. embargo on Cuba that is still in effect. Americans are not permitted to invest on Cuban soil unless it is for the benefit of their own people. The exportation of goods is the only way Americans are able to do business with Cuba; if it is intended to help the country. Limited trade is better than no trade at all. Establishing relations in a small way, are measures taken to help open up the trade. Chances of Cuba lifting up the embargo entirely would be challenging because of their Constitutional regulations, but it’s worth the effort.
Language and Cultural Issues
Spanish is the official language of Cuba and the first language of 90 Percent of Cuba’s population.

In Varadero, it is the form of communication with those visiting the Island along with Creole. There’s about 400,000 people from the Cuban population that are able to converse in Creole with a lot of ease. Others have an understanding of the language and can speak simple Creole.(Spain Exhange, web.) The diversity in Cuba runs very high. There are many differences amongst the cities, like in most countries. Tourist of all places that travel to Cuba are aware of the cultural environment and are attracted to the city because of their culture. This acceptance and respect creates a tranquil and friendly environment. This creates ease in construction sites, through the management sector of the industry and overall for the success of the

hotel.
Religious Environment
Cuba is a multiracial society with a population of mainly Spanish and African origins. The largest organized religion is the Roman Catholic Church. Afro-Cuban religions, a blend of native African religions and Roman Catholicism, are widely practiced in Cuba. (Global Security, web.) However, other religious groups do exist. The religious environment is important as it influences the travel decisions of many. A lot of Historical churches make up the landscape of Cuba. Cuba is known for being one of the safest places to travel.
Attitude towards women in the workforce.
The National Assembly of Cuba has many members. The Communist Party itself is led by a group of 25 individuals chosen by Fidel. Molded by this elite group of communists are organizations that encompass every facet of society, including youth, women, workers, and small farmers, among others.(National encyclopedia, web) In the Cuban Assembly, 48.9% of those seats are filled by women. Patriarchy remains a big part of the Cuban culture, however, women have been taking action to try to change this. The Cuban spirit consist of striving for greatness. The fight for gender equality is extremely admirable. They have made large strides in comparison to how it was back in the day. This can impact the hotel by facing challenges of equal opportunity employment because of how much the government is involved in the labor force.

Currency - Conversion Rates
Cuba uses two different currencies, the convertible peso(CUC) and the cuban peso(CUP). As tourists, we would use the Convertible Peso which the conversion ratio is 1:1. There is a 10% penalty charge when exchanging US currency in Cuba. For Every Dollar, you will receive 87 centavos. The ability to repatriate is vice versa.
Short Term and Long Term Economic Environment
In the short term, the money coming in from Tourism is expected to increase.
Cuba’s economic structure effects the economic growth of the Country itself for the long run.

The Cuban government has taken control of all economic entrances. Unless structural changes begin, I don’t see Cuba being in the best financial position at any given time.
Competition in the City
Tourism is the key component that drives the growth in revenue for Cuba apart from the Tobacco and Sugar Cane industry. Meaning more jobs will become available within the next few years. This means more opportunities for the Travel and Tourism industry in Cuba to expand. As a hotel chain, adapting to the island’s standards is a must. A lot of hotels on the island, have their unique characteristics that may or may not influence people’s choices in staying in your hotel. This impacts the recommendations because people are likely to stay at a hotel that offers the amenities of an authentic Cuban hotel.
Security and Safety
The safety measures one must take when traveling to a foreign country are imperative. Overall, Cuba is a safe place to travel to. Not engaging in acts that may insult or disrespect the Cuban Culture and their Government will keep you in the clear. When being in Cuban waters, it is important to be aware of the high tides and currents of the ocean. Cuban men are very “fresh” at times, and as a woman they might praise you or compliment you. No offense should be taken, unless you feel

harassed.
Recommendation and Conclusion
After learning about the Political, Cultural, Economic, and Religious aspect of the Cuban environment especially in Varadero, it has come to my understanding that opening a new hotel in a foreign country comes with it’s challenges. Varadero is a city in Cuba that is controlled by the Cuban Government. The thought of starting a new hotel in this beautiful foreign city is delightful, however, because of political issues one will face, it may not be attainable unless Cuba lifts it’s embargo act.