First came Netflix, and as of this week, Airbnb has announced its foray into the newly opened Cuban travel market. Tourists can book a stay at one of 1,000 plus listings from the home rental property site for $43 a night on average.
At a glance, the venture is a win-win for American travelers looking for island getaway steeped in history and the Cuban economy thanks to warming U.S.-Cuba relations. President Barack Obama lifted the travel and trade embargo in January.
Moreover, while Cuba has survived without doing much business with the United States, its economy has stagnated. Many Cubans — athletes and artists alike — leave the country to find jobs abroad because of limited resources. And homegrown private businesses run by those who stay behind only get by because of strict regulations that have also kept foreign investment from non-U.S. companies at bay.
The communist island nation gets much of its revenue through tourism, and bringing in modern, internet-based efficiencies would almost certainly generate more wealth for Cuba’s economy and, in turn, provide better lives and access to its people. But growth spurred by online service companies raises potential issues, most notably the lack of reliable internet access.
Despite revolutionizing daily life and business, internet access is a luxury. While it is vital to any country’s success — broadening education and business opportunities — most people worldwide don’t have it. Even in the U.S., just over 80 percent have internet access, according to Facebook’s latest internet connectivity report. Of those who can’t access the internet, 94 percent are citizens in developing countries, the report found.
Cuba’s literacy rates are on par with the U.S., but it has abysmal internet access that is expensive. Also, only 5 percent of Cubans can access the internet as Americans know it due to it heavy government restrictions and a severely lacking infrastructure.
Online services like Airbnb require strong, fast and reliable internet access to function smoothly and juggle thousands of tourist requests per host. As a result, most Cubans interested in offering up their property for rent with the site will have to rely on third-party hosting partners or other intermediaries to reap the benefits of an burgeoning travel market.
Airbnb can offer regular citizens the opportunity to rent a spare room or couch to make a little extra money but it’s largely dependent on wealthy property owners. For example, in New York City, a federal investigation found that about three-quarters of Airbnb bookings were made through individuals who manage hundreds of properties. That potential exists for foreign and domestic investors and real estate owners who want to capitalize on Cuba’s impending Airbnb boom, and is compounded by overall resistance to let outsiders share in profits or otherwise meddle in the country’s financial affairs.
Overall, Airbnb’s venture into Cuba is commendable for giving the country’s entrepreneurs a chance to blossom, for citizens to upgrade and improve their homes, all while pushing government officials to invest in better internet infrastructure.
But change may not come fast or at all to a country where private businesses are welcome but with much trepidation. As University of Havana government economist Juan Triana Cordovi told the Washington Post, “The government is into a lot of sectors that are never going to be efficient. But it provides things people need.”