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| Havana Hotel Investment In Varadero Cuba By American Investors |
AMERICAN HOTEL INVESTMENT IN CUBA
The Cuba investment opportunities of the last sixty years of the 20th century shows that the deregulation of the Cuban economy and of American Hotel investment process was zero and did not bring about any communications between American Investors interests and those of international foreign investors. Economic policies and strategies were required yet not supported by adequate instruments to implement them that would better guide the investment flows.
Investments in main productions and basic services such as communications, power generation, oil refining were carried out by foreign companies. Banking system were controlled by U.S. and English investment banks. The best lands were in the hands of sugar and cattle corporations from the United States, and Cuba controlled 75% of Cuban foreign trade. A few years later, the American companies displaced the companies from other countries, and 95% of the accumulated foreign investment corresponded to American interests.The majority of the Cuba economic control of society went hand in hand with political control. 1950 facilities were created with the purpose of undertaking a resort and casino tourist development with financing and credits that were granted with international and national financial resources to encourage foreign companies to build hotels on the best beaches of Havana, Varadero and Cuba
OLD INVESTMENT IN CUBA
In 1959 foreign investments in Cuba came to an abrupt end thanks to Fidel Castro and the Cuban revolution. Foreign companies were nationalized and agreements were signed with almost all countries whose enterprises or citizens had been affected with the purpose of granting due compensation. Although the Cuban government proposed a plan to compensate the U.S. companies and citizens, Cuba found it impossible to discuss a solution with U.S. administrations who refused to negotiate and have forbidden the affected American investors and individuals to negotiate directly with Cuba. One of the most famous hotels to be confiscated was the Hotel National De Cuba.
In the 1990's Cuba changed direction again when the first joint venture was created between a Cuban enterprise and a Spanish company with the purpose of building a chain of luxury hotels on the best beaches of Cuba in the tourist resort of Varadero on the basis of Decree-Law No. 50 of 1982. Many foreign investors suspected that the Melia hotels were owned indirectly by Fidel Castro.
The change in Cuban investments attitude started a huge growth wave of investment in resorts and hotels from 1991 to 1999, foreign investment was accelerated as the most important investment for Cuban authorities to recover from the serious impact to the Cuban economy caused by the loss of Russian investment and the economic links with other Socialist countries in the framework of the Council of Mutual Economic Aid (COMECON). The economic loss resulted in the loss of 35% of Cuba's GDP in the first three years of the nineties with strong economic and social effects. In 1998 to 2001 foreign investment expanded and more resorts and hotel deals were signed with important partners in new tourism sectors.
Fidel Castro stepped down and Raul Castro opened the flood gates of Foreign Investments into Cuba as investors from 46 countries operate in almost 400 ventures in 32 sectors of the Cuban economy; 52 % of those investors are from European Union countries: 24% from Spain, almost 15% from Italy, 4% from France, 3.5% from the United Kingdom. Tourism, Oil and Gas, Mining,Energy and Telecoms are the main sectors of investment. Thus, foreign direct investment, focused on the search for new external markets, competitive technologies and financing has played an important role in the country's economic recovery.
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| Invest In Cuban Beach Front Property Near Havana Varadero Cuba |
CUBA BEST LOCATION FOR INVESTORS
Cuba is located in a region whose share of virgin investment beaches in terms of world investment is rapidly growing as top international hotel groups look at Cuba for future developments. This, together with Cuban beaches potential and North American integration process, makes hundreds of business people contact the Cuban Economic Development And Investment Office of the Cuban Embassy in Havana in search of information about investment opportunities in the Cuban beaches and resort hotel and real estate sectors.Foreign investment is not associated to a privatization process in Cuba; it is rather focused on specific objectives that focus on Cuban development opportunities that are important to offer much higher investment returns for foreign capital involvement.
In 2003, the National Assembly of the People's Power (Cuba's Parliament) approved a number of foreign investment amendments to the Constitution of the Republic of Cuba with a view to allowing real estate ownership for private investors and joint ventures were legalized and defined.
