Sunday, August 7, 2016

Electricity shortages in Cuba can inhibit the development of tourism on the island – BBC

Cuba could face power outages in the coming months. For electricity generation in Cuba, used oil from Venezuela. Shipments from Venezuela to Cuba amounted to about 90 thousand. Barrels per day in 2015.

But this year is not enough money for the increase in fuel purchases in Cuba Budget and agree to defer payments to struggling with the hard economic crisis Venezuela problematic. As a result, in the first half of 2016 the supply of oil and petroleum products from Venezuela to Cuba fell by 20%.

In this case, the power consumption in Cuba continues to grow in the future, with the commissioning of new tourist facilities will be even greater.

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In 2015, electricity consumption in Cuba has reached a total of 20.29 thousand. GWh. This is by 4.8% more than in 2014, and a third – than in 2005.

The Cuban authorities plan to reduce energy costs up to the end of 2016 by 28%, reported in July, the Minister of Economy and Planning Marino Murillo, who later resigned from his post. To this end, public sector workers have reduced working hours in order to reduce electricity consumption in offices. This is especially true in the most hot in Cuba months – July and August, when because of the heat in the working premises used air conditioners and fans

Cuban President Raul Castro outlined the scale of the problem in July, in an address to the National Assembly and addressed. to the inhabitants with an appeal to reduce the power consumption to a minimum. To cool the space people have to open all the windows and doors. In public places, minimal lighting, and public institutions are closed after dark. “In the near future improvements will not be exact. Perhaps it would be even worse, “- he shared his experiences with the Financial Times mechanic from Havana Ignacio Perez

Residents fear that Cuba will be back in the 90s of the last century, when. power outages were commonplace.

Then the electricity in homes was included for only a few hours a day. “Many say that the power outage may return. It’s terrible “, – quotes Reuters the words of a resident of Havana Teresa Perez

The main source of hard currency in Cuba -. Is the export of products such as nickel, medical goods, sugar, coffee. In 2015, more than half (from US $ 14,755 per tonne in January 2015 to $ 8465 in January 2016) and a reduction in demand for medtovary from Venezuela exports from Cuba in terms of value decreased due to the drop in nickel prices from $ 5.2 to $ 4.41 billion. this year, nickel prices have adjusted to $ 10 440 per tonne, but now threatens Cuba reduction in income from sugar exports. Due to heavy rains sugarcane harvest is projected to decline from 1.9 million to 1.6 million tonnes.

The problem with the lack of liquidity in hard currency could solve foreign tourists. The Cuban tourism industry is on the rise after the normalization of political relations with the United States. Revenue from tourism increased by 17% in 2015 and by more than 11% – in June 2016, according to Reuters. According to Cuban authorities, the number of tourists from the United States to Cuba has increased in 2015 by 77%, to 161 thousand people

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last year Cuba received $ 2.8 billion in revenue from tourism. In the tourism industry accounts for 10.1% of Cuba’s GDP.

But it is not all so simple. In order to increase the number of tourists from abroad, Cuba needs to increase hotel complex. In this regard, Cuba now actively building new hotels. Problems with the supply of oil could slow the process of building for an indefinite period, as investors will not dare to invest in tourist facilities, energy which would be called into question. A vicious circle: to solve problems with power supply is necessary to increase the flow of tourists and to build new hotels, but their creation will entail an additional burden on the power grid of the island

A year ago, Cuba established diplomatic relations with the United States.. The Cubans were in a euphoria, hoping for economic growth of the state, but the economic crisis in Venezuela destroys all the plans. “As soon as we think about the good, as the disaster has overtaken us again, – commented on the events Financial Times pensioner from Havana Miriam Galabasa. – I’m worried about the country: what if people start to leave? What then? »

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