The aspirations of thousands of private entrepreneur was discouraged after the US State Department travel warning for Cuba post the mysterious attacks that harmed almost a dozen of diplomats.
Many Cubans invested heavily in private run restaurants, homestay B&B and cars to operate as taxi cabs with the hope of cashing on the expected boom of American tourists after the sudden diplomatic thaw between the Cold War foes that started in 2014.
The fears are more pronounced in Old Havana where Cubans invested in real estate market, the entrepreneurs are worried that Americans will be frightened away despite having any tourists affected.
The State Department after receiving the travel warning mentioned that it will reduce around 60 percent of its diplomatic staff at the U.S. Embassy in Havana and the visa processing in Cuba will be suspended. 15 Cuban diplomats were expelled to protest Havana’s failure to protect American envoys from the attacks which remained unexplained.
President Raul Castro’s government called the U.S response as reckless, hasty and politically motivated, the United States did not accuse Cuba of being behind the attacks.
The economy of Cuba is basically dependent on the tourism sector. According to the government statistics 4 million travelers visited the island which had 281,000 Americans, there were almost 400,000 visits last year by the Cubans living overseas where a vast majority was residing in the United States.
Canada, Europe and other countries contribute majorly to the U. S tourism more than Cuba, however analyst predict if the U.S embargo got lifted entirely 1 million more American travelers flood the island on an annual basis.
The U.S President Donald Trump announced in June measure to limit American travel to Cuba, barring the so-called people –to –people educational trips apart from those run by the licensed operators.
The goal was to support the increasing class of independent entrepreneurs, the measures however steered the U.S travelers away from the privately run B&Bs and restaurants. It was suppose to draw towards the government-run hotels and eateries having larger capacity and better equation with the tour operators.
There was already a lull in September after the hurricane hit, when it was observed that high season was lasting year-round.
