Why did Havana promote tourism and foreign investment after 1991?

Following the dissolution of the Soviet Union in 1991, Cuba faced a severe economic crisis. Prior to this, the Soviet bloc had effectively subsidized the Cuban economy, and the loss of this financial assistance caused the nation's economy to decline by 35–50 percent between 1989 and 1993.123

To stabilize the economy and promote growth, the Cuban government shifted its strategy by relaxing controls on private enterprise and actively encouraging foreign investment, particularly within the tourism sector. By modernizing and expanding tourist infrastructure—such as building new hotels and resorts—the government sought to generate necessary currency reserves and offset the loss of Soviet trade. This pivot toward tourism and market-oriented reforms allowed the country to mitigate the impact of the collapse and begin a gradual economic recovery.1324