The socioeconomic growth and stability of a nation greatly depends on her political stability and for those nations that have not opened up their political space it might take a while for them to realize this dream. This is because most investors both local and international will be scared to invest in a nation where there is political instability, hostility and tension. Cuba is such a nation which is a totalitarian communist state; this is despite the fact that it is one of the South American nation's that is rich flora and fauna and therefore this places it as leading tourism destination. There are a number of social challenges that the nation faces in its quest to attract international investors to boost its tourist sector. Some of these challenges include poor infrastructure, high level of unemployment, poor working and housing conditions for its employees and also the pathetic state of the health sector. These challenges pose a great risk to the foreign investors who wish to invest in the tourism sector.
To counter the above challenges there are a number of steps that foreign companies interested in investing in the Cuban tourism sector or have already set up base in Cuba ought to take into consideration. The first micro factor that companies must address is labor, for foreign companies penetrate the market they must employ qualified locals who will help in marketing and managing the company. The company should also ensure that they provide better working conditions and salary packages for their employees as compared to those given by local companies. In addition to that the foreign tourist companies must come up with special tailored packages for the local market. For macro threats, these foreign companies should work hand in hand with the government to ensure that infrastructure mostly roads, hospitals and hotels are built or repaired to be able to accommodate the high number of tourists. Finally the political space should be opened up, get rid of the current system and give room to democracy.