Despite the alleged global crisis, Cuba welcomed 2.35 million foreign tourists in 2008. A record. I checked the DR Sectur website, and the DR had 3.9 million non-resident foreigners visit in 2007. The 2008 numbers are incomplete but it looks like 2.6 million for the first 8 months of 2008. Looks like there was a decline in tourism in the DR in 2008. One country's statistics are going one direction and the other one is going the other direction. Yes the DR gets more tourists, (for now) but Cuba is a strong competitor. The fact that they are legally prohibited prohibited from doing business with the largest economy in the world and still get 2.3 million visitors (and that Cuba's GDP is actually larger than the DR)is something to really take note of.
The tourist infrastructure is there. Yes, outside of the tourist zones the infrastructire is absolutely decrepit, but anyone who has visited the government planned tourist zones of Varadero, Cayo Coco, Cayo Largo Cayo Sanibal, and Guardalavaca will tell you that the infrastructure is there. Many Spanish companies invest in CUBA (the melia and barcelo hotels, like all hotels, are property of the Cuban State, but the foreign companies get paid for the license and to manage it.) What they have managed to do so far without US investment is noteworthy. An article from the St. Pete Times tells about Cuba's massive tourist expansion.
Cuba aims to become tourist magnet - St. Petersburg Times
Cuba is throwing everything it has into tourism as it is the only industry in the past 50 years that hasn't failed.
Again, for the independent tourist, I don't think Cuba would be an option for everyone. But for someone who just wants to get a package with a charter flight and an all-inclusive resort in a tourist zone, lay on a beautiful beach, eat, drink profuse amounts of alcohol, go on tourist oriented tours, make passionate love to animacion employee sankies, and purchase some overpriced cigars, rum, and souvenirs, what does it lack that Punta Cana has? (besides casinos-gambling is illegal in Cuba) The Cuban all-inclusive packages can certainly compete on price with the DR. Lower labor costs,the fact sales tax does not exist in Cuba (no 26% hotel taxes), and less confiscatory airport taxes than in the DR.