There’s One Nagging Problem With Airbnb Coming To Cuba

There's One Nagging Problem With Airbnb Coming To Cuba
BY LAUREN C. WILLIAMS POSTED ON APRIL 3, 2015 AT 2:05 PM

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 — It 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."

Source: There's One Nagging Problem With Airbnb Coming To Cuba |
ThinkProgress -
http://thinkprogress.org/world/2015/04/03/3642660/theres-one-nagging-problem-airbnb-coming-cuba/