Because of the U.S. trade embargo, Cuba's most important trading partners were the Communist nations of Eastern Europe. When communism began collapsing in those countries in 1989, Cuba lost the bulk of its export market and had to look for income-making opportunities elsewhere. The post-1989 years became known as the Special Period in Cuba, a time of economic hardship during peace.

One economic reform Castro allowed, albeit reluctantly, was to encourage foreign visitors to come to Cuba, as they had in prerevolutionary days. The government built a number of tourist-only hotels and restaurants and restricted Cuba's finest beaches for their private use. A number of dollarsonly stores were opened that carried top-quality merchandise at reasonable prices, all designed to separate tourists from even more of their money.

The influx of tourists also led to the return of small businesses in Cuba. Although the...