While the economic crisis suffocates the Cuban population, the regime organized an extravagant party at the Capitol in Havana to celebrate the XXV Festival del Habano.
The exclusive "Noche Intermedia" brought together 600 select guests at the Salón de los Pasos Perdidos. They enjoyed a luxurious dinner, performances by artists, and the world premiere of the H. Upmann Magnum 50 Gran Reserva Cosecha 2019.
One of the well-known figures spotted at the luxurious party was the lawyer Manuel Anido, boyfriend of Ana de Armas and advisor and stepson of Miguel Díaz-Canel.
The event organized by Habanos S.A. highlighted the exclusive nature of Cuban tobacco, presented as a gem reserved for those who can afford luxury prices, in a country where extreme poverty is growing rapidly and thousands of families spend their nights in darkness and without food.
Sales record amid the crisis
Despite the devastating economic crisis facing Cuba, the sales of Habanos S.A. reached a record high in 2024, with 827 million dollars in revenue, 16% more than the previous year. China has established itself as the most lucrative market for the company, followed by Spain, Switzerland, the United Kingdom, and Germany.
The vice president of Habanos, Jorge Pérez, stated that the demand for Cuban cigars continues to rise, especially among the affluent classes in Asia. This occurs despite the damage caused by hurricanes Rafael in 2024 and Ian in 2022 to the tobacco plantations in Pinar del Río and Artemisa.
Habanos S.A. is a company with mixed capital, with 50% owned by the Cuban government and the other 50% by Asian investors. While the government makes millions in profits from tobacco exports, Cubans are facing an alarming shortage of the product on the island.
Tobacco: Principal export product
Just a few weeks ago, Miguel Díaz-Canel reaffirmed the importance of tobacco as the main export product of Cuba, highlighting its "proper return" and the profitability of the business. In his view, this sector has "the best economic scheme in the country."
However, the reality in Cuba contradicts the words of the leader. While Cuban tobacco is sold at exorbitant prices in international markets, on the island it is almost impossible to access it at reasonable prices.
Smoking in Cuba is a luxury
Tobacco and cigarette prices in Cuba have skyrocketed to astonishing levels. Packs of Popular without filter, which should cost 30 pesos at state-run stores, are being sold on the black market for up to 600 pesos.
Smokers who prefer cigarettes from the H. Upmann brand must pay between 1,200 and 1,500 pesos for a single pack. The shortage has created a lucrative black market where resellers and small businesses control the supply and set astronomical prices.
While the authorities speak of "overachievement" in cigar and tobacco production, ordinary Cubans are forced to either stop smoking or pay exorbitant prices for a product that used to be part of daily life on the island.
The irony is evident: While the regime organizes luxurious events to celebrate tobacco and generates millions in revenue from its export, Cubans can barely afford a cigar and many have never tasted a Habano.
Frequently Asked Questions about the Habanos Festival and the Economic Situation in Cuba
Why does the Havana Festival generate criticism in Cuba?
The Habano Festival generates criticism as it represents a luxury and a disconnect of the government from the reality of the Cuban people. While it is celebrated opulently in Havana, the country faces a serious economic and energy crisis, with blackouts and shortages of basic goods, which causes indignation among citizens.
How does the economic crisis impact access to tobacco in Cuba?
The economic crisis has made access to tobacco in Cuba very limited. Black market prices have skyrocketed, causing a pack of cigarettes to cost up to 20 times more than the official price. This situation has turned smoking into an unattainable luxury for many Cubans.
Where do the proceeds from the Habano Festival go?
The revenues from the Festival del Habano, as well as those obtained from the Humidor Auction, are supposedly allocated to the public health system. However, the reality in Cuban hospitals does not reflect significant improvements, raising questions about the true destination of these funds.
Why is tobacco important for the Cuban economy?
Tobacco is Cuba's main export product and is considered a significant source of foreign currency for the government. Tobacco sales reached record figures in recent years, reinforcing its economic importance, although these benefits do not seem to improve the situation for the Cuban population.
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