1- Cuba’s Economic Challenges: Inflation and Industrial Decline
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Cuba faces severe economic challenges, with inflation significantly impacting the informal currency market. The exchange rate for the euro in Cuba’s informal market has been on a consistent upward trend since 2021, indicating a significant devaluation of the Cuban peso. This devaluation and the lack of effective government solutions have pushed citizens towards the informal market to procure foreign currency, exacerbating economic inequalities.
Cuban-Russian Relations Strengthened Amidst Global Festivities
Cuba has recently engaged in significant activities to commemorate the 80th anniversary of the Soviet Union’s Great Patriotic War and the 65th anniversary of diplomatic relations between Cuba and Russia. A ceremony was held at the Soviet Internationalist Soldier Mausoleum near Havana, with participation from officials and diplomats from both nations.
Cuba’s Turbulent May Day
The May Day parade in Cuba is described as a means for the populace to distract themselves from daily hardships rather than a demonstration of political or union solidarity. While state media presented the parade as a display of patriotism and resistance against U.S. sanctions, there are widespread doubts about its authenticity. Many see the parade as a response learned from ideological control and fear, with participants attending more out of inertia or pressure than genuine enthusiasm. A video shows what appears to be med students being threatened over attendance to the May 1st parade.
Growing Tensions Between the US and Cuba
The $30 million verdict against Expedia for illegal profits made from hotels on confiscated Cuban land is a significant legal milestone that could inspire other Cuban exiles pursuing compensation claims. The US is attempting to engage directly with Cuban civil society, demonstrated by Mike Hammer’s visits with independent journalists, activists, and entrepreneurs in Cuba.
These diplomatic engagements are part of broader efforts by the US to promote human rights and foster open dialogue within Cuba, presenting an alternate form of soft power. However, this approach has been met with warnings from the Cuban government accusing the US of meddling. This scenario underscores persistent tensions in diplomatic relations as both countries navigate interactions that challenge political narratives and governance on the island.
Cuba’s Efforts to Revitalize Tourism Amid Declining Visitor Numbers
Cuba has launched new strategies to revitalize its declining tourism industry, with a particular focus on tapping into the Russian diving tourism market. At the FITCuba 2025, Cuba announced a collaboration with the Russian agency Rus Cuba Dive to promote diving tourism in the Ciénaga de Zapata, Varadero, and Zapata Peninsula Natural Park areas.
Cuba, Venezeula, and Honduras signed an academic cooperation agreement aimed at boosting the tourism sector through educational collaboration. This agreement is part of the ALBA-TCP bloc’s efforts to strengthen regional tourism.
The number of Canadian tourists, a major visitorship in Cuba, has plummeted by more than 30% in early 2025. This decline is part of a broader trend affecting other key markets, including Russia and European countries like Spain and Italy. Factors contributing to this downturn include Cuba’s economic crisis, frequent power outages, shortages of essential goods, and an increase in crime rates.
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