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Tourism up 16% to Cuba for 2003

HAVANA - (AP) - A decade after many predicted Cuba's economy would collapse as it struggled with the abrupt loss of critical Soviet aid and trade, the communist island continues its recovery and registered 2.6 percent growth in 2003, economic planners said. Economics Minister Jose Luis Rodriguez credited this year's marked improvement in Cuban tourism for much of the growth as he gave his annual year-end report to the Cuban parliament. President Fidel Castro, and his younger brother and designated successor, Defense Minister Raul Castro, attended the session along with other high-ranking government officials. The Castro brothers, along with virtually all other high-ranking members of the Cuban government, also sit on the parliament. Speaking to nearly 550 Cuban lawmakers at the session, Rodriguez noted that Cuba's estimated growth for this year was far better than the 1.5 percent growth registered across Latin America and Central America during the same period.
Cuba enjoyed particular economic success in tourism, with a 16 percent increase in income for 2003 over the previous year, he said. Tourism throughout the Caribbean plummeted last year as people cut back on air travel after the September 2001 terror attacks on the United States. But Rodriguez said 1.9 million people visited Cuba in 2003 - up 12.7 percent from the previous year - as travelers shook off their earlier fears and Cuba continued to promote tourism as its No. 1 source of foreign currency needed for international trade. Rodriguez projected continued growth in tourism for 2004. Osvaldo Martinez, head of the parliament's economics committee, recalled that in December 1993 many had predicted Cuba's imminent collapse as it wrapped up "its most difficult, most anguished year" economically. "For traditional political and economic thinking, it was impossible that a small, underdeveloped nation that from one day to the other had lost 85 percent of its commercial trade, its petroleum supplies ... could survive," Martinez said.
Since, Cuba has replaced sugar with tourism as its primary source of hard currency. It also now produces much of its own natural gas and petroleum, along with much of its own food. With the focus on tourism, almost four times as many people now visit Cuba as they did a decade ago, when less than 550,000 traveled to the island annually. The island also has nearly quadrupled the number of its hotel rooms, to 41,600. "From an economy traditionally structured around the production and exportation of sugar and some other basic products, we have gone in 10 years to a more modern and less vulnerable structure," Martinez said. Along with tourism, Cuba also is now developing its scientific and technical sectors, especially in biotechnology, and the production of medicines and medical equipment, as potential sources of foreign income, he said. But sugar, once the locomotive that ran this Caribbean nation's economy, in 2003 still struggled with an ongoing restructuring of the industry, Rodriguez said. He said the annual harvest for the 2002-2003 year was just 2.2 million metric tons, far smaller than other recent harvests averaging around 3.5 million metric tons. Harvests more than a decade ago were commonly 6 million to 7 million metric tons a year, but they slowly declined over the years and the Soviet Union's collapse erased what was once Cuba's most lucrative market for sugar.