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Cuban entrepreneurs fret over new regulations

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(18 Aug 2017) Cuba has stopped issuing new licenses for private restaurants and homes that rent rooms to tourists as it struggles with the runaway success of one of the most important openings in the state-run economy.The country was once famed for its dire state-run restaurants and cafeterias, but it has developed a vibrant dining scene since private restaurants were legalized two decades ago. A sector that began with enterprising Cubans setting up a handful of tables in their backyards has expanded into an industry of hundreds of restaurants with offerings ranging from freshly caught sushi to sophisticated interpretations of classic Cuban dishes.Ilia Herrera is one of those investors, she is overseeing a massive renovation of a building in Old Havana, hoping to open a two-storey restaurant catering to the growing numbers of tourists visiting the island.But after investing thousands of euros, and months of hard work, for now the restaurant is just a dream, and Herrera wonders if it will ever open.Part of the problem for the Cuban Government is that private restaurateurs lack a wholesale market or legal way to import supplies and equipment. So they've been emptying the shelves of retail shops and buying other goods on the black market. That has led to rising food prices and shortages of goods for other Cubans.But the government has refused to allow wholesale markets outside state control to supply these businesses, forcing many to resolve their supply issues any way they can. The situation has led to a growing black market the government wants to control, and before issuing any more private licenses, the government wants to set up a more rigorous regulatory process to end the illegal trade.That has left Herrera and many others in limbo, hoping the government will resume issuing licenses in the near future, so they can recoup their investment and make a living in the private sector.Meanwhile, Cuba's ailing economy has grown a paltry 1 percent for 2017, the state sector is barely producing and providing employment for millions of Cubans. Which has left the private sector to take up the slack. But with the new restrictions, that pathway to economic growth has been hampered, at least until the government comes up with a new policy.You can license this story through AP Archive: http://www.aparchive.com/metadata/you... Find out more about AP Archive: http://www.aparchive.com/HowWeWork

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AP Archive apus082248 71cacde40c50e172d34604b2cd3e7490 Cuba Private Enterprise Cuba Caribbean Latin America and Caribbean Havana Government and politics Business Lifestyle
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