"Forget about Cuban pesos," stated Cuban content creator Yarelys (@yarelys_hd), who took to social media to report that several cafes and restaurants in hotels managed by the Gaviota Group, a part of GAESA, now refuse payments in the national currency. Instead, only U.S. dollars or international cards are accepted. In a video shared on Instagram, Yarelys explained that she frequently visited these places where it was once possible to pay in Cuban pesos. However, on a recent visit, she discovered "by chance" that the Cuban peso was no longer accepted in these establishments.
"This time I really ask you to share this. I was very disappointed to find out like this... They limit us so much in our own country, that one feels excluded," she lamented. Yarelys's words sparked an outpouring of responses on social media. Numerous Cubans confirmed that similar policies are already in effect at hotels like the Royalton Paseo del Prado and Parque Central, all under GAESA's control.
Restrictions in Cuban Hotels
Comments have converged on the notion that for weeks now, payments have been restricted to cash in dollars or international cards, effectively barring the majority of Cubans from accessing hospitality and tourism services. Other patrons reported that even offers like "day passes" for hotel pools, previously payable in Cuban pesos, may soon require payment exclusively in dollars.
This measure, they warned, would deny thousands of people any leisure options, as these activities were once relatively accessible amid the current crisis. "It's very sad and unjust," some users expressed.
High Costs and Poor Services
Apart from the payment method, various customers have complained about the steep prices and subpar service quality. For instance, at the Hotel Palacio de los Corredores, a drink costs nearly $5 and was served in a small glass with low-quality ingredients. "The hotels are empty, the prices are outrageous, and the service deteriorates, but the most serious issue is that they exclude the average Cuban by not accepting their currency," criticized voices on social networks.
Some noted that hotels occasionally agreed to accept cash in dollars but insisted on receiving the exact amount, highlighting the informal nature of these policies and the practical challenges they pose for customers.
The Cuban Peso's Decline
The Cuban peso, it appears, has once again been excluded from strategic tourist and commercial spaces. This phenomenon not only affects leisure consumption but also exacerbates social inequality, as those without access to foreign currency are automatically marginalized.
Hit by inflation, scarcity, and an increasingly dollarized economy, the Cuban peso (CUP) is deeply devalued, leaving the Cuban populace growing poorer by the day. Last week, the dollar reached 400 CUP and the euro 450 CUP in the black market, record figures that underscore the national currency's deterioration. Meanwhile, the Freely Convertible Currency (MLC) is valued at only 200 CUP and is used less frequently as state-run stores shift to dollar sales.
The scenario reflects a growing dollarization in Cuba, while prices for essential goods and services continue to soar. Cuban workers are left to endure an economic system designed for wages from another world.
Understanding Cuba's Economic Challenges
Why are GAESA hotels only accepting dollars?
GAESA hotels are reportedly only accepting dollars to align with the increasing dollarization of the Cuban economy and potentially maximize profits in a volatile economic environment where the Cuban peso is rapidly devaluing.
How does the exclusion of the Cuban peso affect local citizens?
Excluding the Cuban peso from transactions in GAESA hotels limits access to services for locals who do not have access to foreign currency, thereby increasing social inequality and economic hardship.
What is the impact of dollarization on Cuba's economy?
Dollarization in Cuba leads to a devaluation of the national currency, inflation, and a widening gap between those with access to foreign currencies and those without, exacerbating economic disparities.