Contrary to popular belief, staying in a hotel in Cuba doesn’t  guarantee a good room and certainly doesn’t guarantee a high standard of food. Varadero, remember, is sold as the cheap alternative to Cancún. Most travellers who have journeyed outside Cuba’s all-inclusives generally reckon the new breed of highly-professional, top-quality casas particulares (privately-owned bed and breakfasts) springing up country-wide to be vastly superior to hotels as accommodation options. And Cuba, it just so happens, making the city a great place to experience living with a family in the real Cuba for the first time. 

If you want to get to know Cuba you’re going to need to get to know Cubans. There’s no easier way of doing this on a two-week trip than to stay in the Cuban version of a B&B, a casa particular. You’ll feel more like a lodger than a hotel guest, sharing the owners’ living space with them and, given the national penchant for chat, engaging with them in next to no time.

Forget the internet

As far as the internet goes, Cuba is among the most poorly connected countries in the world, with severe state restrictions on who and where gets access, dreadful connection speeds and no mobile broadband other than wifi.

Unless you are staying in or near a top hotel, don’t expect to be able to connect with your phone at all. You might just be lucky enough to find one of the few public wifi spots or patient enough to queue at one of the small number of internet cafés – where the connection will be screen-gazingly slow and the rates usually exorbitant.

So unless you do all your online research before you leave home, bring a guidebook

A 20km peninsula of white-gold sand flanked by fifty plus all-inclusive hotels: it’s no wonder the foreign tourists flocking to Varadero, the largest resort in Cuba (and one of the largest in the entire Caribbean), have passed the one million mark.

But there are few places on the planet where the contrasts between the resort and the land just beyond the gates are so poignant. From the gleaming, modern US$200-a-night mega-hotels, neat stretches of beach and manicured avenues you cross into a world very much its antithesis. A world of dilapidated colonial architecture and honking 1950s Cadillacs negotiating potholed roads, fruit vendors, horse-drawn carriages and cyclists inexplicably balancing everything from sugar cane to antique furniture on their shoulders as they pedal their decrepit machines – and a world where the characters in the cast, the Cubans themselves, earn an average US$15 a month.

Even all-inclusive resort lovers shouldn't pass over the chance to venture outside Varadero. It’s not merely that colourful, magical mayhemic dose of authenticity you’ll be missing out on. For all of Varadero’s tourist brochure charms, there is better diving, better attractions and (many would say) better places to stay just outside the peninsula’s tourist-gift-wrapped confines - and all close enough to return to those resort comforts come nightfall, should you so desire.

Playa Coral

If you thought Varadero’s waters resembled an azure paradise, rethink. Just 15km from Varadero on the road to Matanzas, Playa Coral has a coral and sand beach with sublime reefs just meters offshore (Varadero has none close enough to swim to). Water visibility often exceeds 25m, so prepare for great glimpses of some of the fifty species of coral and hundred species of fish thriving here. Snorkelling (CUC$10 per 45 minutes) is best before 10am when tour groups start arriving and the wind picks up. Diving is CUC$25 per immersion. All equipment is available for rent.

Cueva Saturno

On the turn-off to the airport just 20km from Varadero a path through wooded scrubland suddenly plummets into an intricate system of caverns (57 all-told) including the set-piece: Cueva Saturno, a cenote or underground natural swimming hole. The water is a lurid turquoise and you can swim or snorkel amongst stalagmites and stalactites, many of which have fused into palatial columns surpassing even the faux colonial pillars of the finest Varadero hotel lobby in majesty.  Admission is CUC$5, and a man near the entrance usually serves up roast pig.

Matanzas – the Athens of Cuba

If Varadero is the big-buck tourism business of Cuba’s present, thenMatanzas is the glamorous cultural beacon of Cuba’s past. The glory days faded in the early twentieth century, but in a beauty contest Matanzas’ battered but alluring colonial architecture steals the show from Varadero’s generally unimaginative hotel designs. Feast your eyes on the 1863-built Teatro Sauto, a grandiose theatre with its lobby and ceiling graced by depictions of the Greek goddesses and muses, which hosted the likes of Russian dancer Anna Pavlova in its day. Browse the delightfully eccentric Museo Farmaceútico, a trapped-in-time 19th century family pharmacy preserved immaculately with a hotchpotch of original bottles and medical implements displayed. Or hike 1.5km up from central Matanzas to 19th-century Iglesia de Monserrate, poignantly crowning a hill from which there are incredible views of the city and the dramatic Valle de Yumurí.

With a somewhat weird two currency monetary system and a very unique political/social situation Cuba's foreign currency exchange can appear a bit daunting for a first time visitor, but with some basic info most people should be able to grasp the essentials without too much trouble. 

Here are a few thoughts... 

Cuba is like most other foreign destinations, you bring a major foreign currency and exchange it into the local currency to make purchases while you’re there. Cuban currency is NOT traded internationally, so you can’t buy it in advance. You buy it when you arrive in Cuba.

1.) The major legal currency for Cuba is the Cuban Convertible Peso, CUC. It’s what you exchange your foreign currency for and make all your purchases with in Cuba. Most tourists will only ever deal with CUC. For international exchange purposes 1.00 Cuban Convertible Peso = $1.00 USD.   Note that there is a 10% penalty charged when exchanging USA dollars cash, so, you will only receive 87 centavos CUC for one USA dollar when changing the money, allowing for the 10% penalty and a 3% currency exchange fee. 

2.) The second legal currency in Cuba is the simple and lowly Cuban Peso, CUP, which is rarely used by the vast majority of tourists, but it’s still something you should know about as it is perfectly legal for tourists to use it. For example, you can pay the ride in old taxies anywhere in Cuba in CUP. They cost berween 10 CUP and 20 CUP per person depending on the distance and destination. However, you can pay for the service in CUC as well. Just be aware that there is no way to pay 10 CUP in CUC, so that will cost you 50 centavos CUC, which is 12 CUPs. You can also use CUP in local shops where Cubans buy their provisions. 
Outside of a resort or hotel when you're travelling independently it’s always handy to have a few Cuban Pesos on you. You get about 24 of them for 1 Convertible Peso.

Street food like sandwiches and pizza, fresh fruit drinks and other small purchases are all incredibly cheap. Once you get a feel for Cuba – if you speak a little Spanish it will be even better – there are peso bars and restaurants that can be quite interesting. Movies are cheap too. 

Both types of Pesos, CUC and CUP, are legal tender in Cuba and both are completely available to anyone – including foreigners – with no restrictions whatsoever . You can exchange your CUC for CUP at any bank and most non-resort and non-airport Cadecas. 
As a first-time visitor to Cuba though or as a resort tourist venturing off the resort for the day you can easily handle ALL your transactions with Convertible Pesos, CUC. 
Lastly, if you leave a tip, leave it in CUC.

============================== 

It's not uncommon in certain situations to be scammed by being charged in CUC but given your change in CUP. Therefore it's a good idea to know how to recognize the two different currencies:

Convertible Pesos, CUC: http://www.cubacurrency.com
Cuban Pesos, CUP: http://www.cubacurrency.com

============================= 

At present here is the ONLY website that gives you the exact exchange rates that you will receive at the Bank in Cuba. 
http://www.bc.gob.cu/Espanol/tipo_cam... 
It's in Spanish, but it's very easy to decipher. Here's how it works...

============================== 

Where to exchange your foreign currency:

1.) The best exchange rate is at any bank.

2.) The next best exchange rate is at any Cadeca. A Cadeca (Casa de Cambio which means House of Exchange) is a government exchange facility. They're located at airports, many resorts and hotels and at locations all over the Island. 
3.) The worst rate can potentially be over-the-counter at any hotel or resort because the rate is not regulated by the government. 
If you're an independent traveller or a long term visitor and paying everything in CUC then exchanging at a bank is obviously the most sensible option. 
With few exceptions CUP is available at most non-resort Cadecas, non-Airport Cadecas and Banks. 
 =============================

Very Important: You require your Passport for ALL currency exchanges. 
==============================

Accepted Currency: Always bring new(ish) bank notes, with no rips, tears or markings. Large denominations like $50 & $100 Canadian bills are not a problem, nor are the new Canadian polymer bills an issue. 
All foreign coins are useless, same as almost anywhere else in the world. Resort workers or any Cuban in contact with foreigners will accept them, but then you're burdening another tourist with the task of exchanging the coins back into paper cash. In other words, Canadians, leave those Loonies and Toonies at home!

============================== 

Getting rid of your Cuban Convertible Pesos: You can exchange your leftover CUC at the airport when you leave, but naturally you'll lose money in the exchange. A much better way to handle your CUC is to budget wisely during the last few days of your trip so you don’t arrive at the airport loaded with useless CUC. Bring enough to buy a snack and whatever you wish at Duty Free or save it for your next trip. (Remember though, technically you aren't supposed to take CUC and CUP out of Cuba.)

============================= 
Lastly... 
1.) Travellers Cheques: They are more hassle than they're worth. They're sometimes difficult to exchange and when you do find a place to accept them you pay a commission to cash them. If they do get lost or stolen they can't be replaced until you return home. 

American Express Travellers are accepted at BFI (Banco Financiero Internacional) and BM (Banco Metropoliano) and many Cadecas but are too subject to usual 10% fee. If you do bring them as emergency back-up remember you must have all the original purchase receipts with you.

US tourists should investigate any cost advantage to exchanging their USDs into another foreign currency in order to help lessen the 10% surcharge that Cuba levies against US cash. USD to CAD to CUC is sometimes a little cheaper than exchanging USD directly to CUC. Do the math!

2.) Canadian Credit Cards: Any of the "Big Five" Canadian banks are fine. Royal Bank, TD/Canada Trust, Bank of Montreal, Bank of Nova Scotia and Canadian Imperial Bank of Commerce. 
No problems with PC Financial or Canadian Tire Mastercards as well. And for our friends in Quebec the National Bank Mastercard and Desjardins Visa also work too.

Canadian Debit Cards: Canadian Debit Cards were useless in Cuba but this is finally starting to change. The CIBC Advantage Visa Debit Card is now joined by the TD Canada Trust Visa Debit Card and the Visa Desjardins Prepaid Card working in Cuban ATMs (and Banks and Cadecas) because they display the Visa symbol on the card. Until this becomes common though do NOT assume your Debit Card will be of any use there. Any card without a Visa or Mastercard symbol is useless. 

3.) UK/European Credit and Debit Cards:  Many North American and UK/European Global Debit and Credit Cards like Barclays, Lloyds TSB, Nationwide, Bank of Scotland ( not RBS), Post Office, Yorkshire, Tesco, Halifax, etc. are fine. 

Of course they have to be non US affiliated and display the Visa or Mastercard symbol. Visa will work in an ATM, Mastercard means a trip inside to deal with a teller.

Lastly, most UK credit cards now charge a foreign transaction fee of 2.75% which they disguise in the exchange rate back to Sterling. National's rate is lower and Post Office doesn't have this charge at all. Contact your card supplier to confirm their charges. 
4.) Australian Credit and Debit Cards - It has been reported that some Australian credit and debit cards are no longer, as of 15 Jan 2015, accepted in Cuba. Subsequent investigation could not confirm this with a degree of certainty, as some people claimed that their cards did work but did not say which banks issued their cards. Your cards may work fine, provided the issuing bank has no connection with the US, but you must advise your bank before the travel that you are going to Cuba. The exceptions are the credit and debit cards issued by Citi bank and all pre-purchased Visa and Mastercard Travel Cards. These are not working.

5.) Useless Credit/Debit Cards: Citi Bank, Capital One, Maestro, MBNA, AMX, any Mastercard from a Canadian Credit Union, Diners, Egg, Santander/RBS, Abbey, Abbey National, Alliance & Leicester, etc. are some of the United States affiliated cards that are useless in Cuba. 

6.) Credit Card versus Cash: There is no extra fee in Cuba for using a credit card. Your Credit Card may be subject to a Foreign Transaction Fee at your home Bank, but there are no additional charges in Cuba. Your credit card purchase in Cuba will be converted from CUC to USD then when the transaction is posted to your statement it will be converted to your local currency.

personally I would take us dollars although euro is widely accepted and you will be given pesos in change. if you are staying in what i classify as a compound hotel then i cannot see any use for peso. there are two types of peso currency in circulation and it is doubtful if you would be able to access the cuban peso exchange so be aware when you see advertised prises in peso this is not the peso that you would get from the travel agency. it took me three months to be able to access the cuban peso only because i had been mugged and robbed and ended up staying with a family at the insistance of the police although i was surveiled at every given moment and by the family and neighbours.

things are changing slowly and now the cubans can accept more family funds from american family. so there will be alot more dollars in the system.

Eat out in paladars

Eating out in Cuba is no longer as bad as you’ve probably heard. The reputation for the same, unimaginative, mono-flavoured cooking wherever you went was largely deserved until a few years ago when draconian restrictions on the opening and operating of privately-run restaurants, known as paladars, were lifted.

A nation of sleeping chefs and restaurateurs have now awoken from their enforced slumber and unleashed a wave of mouth-watering menus and creatively-designed venues. Stick to paladars, rather than state-run restaurants, and you should eat well.

Where to eat: http://www.bemyguestincuba.com/#!eat-out-in-cuba-paladares-list/w5xai

Always stash some cash

Cash is king in Cuba and you should never rely on credit or debit cards or travellers cheques for payments. For the majority of goods, services and businesses plastic is useless, whilst for all private enterprise, including paladars and casas particulares, only the paper stuff will do.

Always withdraw money when you can. Cash machines are scarce, those accepting foreign cards even scarcer and problems with them are frequent; not all banks can process foreign currency transactions and the opening hours of those that can rarely extend to the weekend or past 3.30pm in the week, especially outside Havana and the beach resorts.

From a security point of view it’s not ideal, but whenever you withdraw cash you’ll likely save yourself some hassle if you take out enough for at least a few days, especially on a road trip into the provinces.

Tip the right people

Lawyers become tour guides and doctors wait tables in Cuba – mostly for the tips that so significantly top-up their salaries (the average state wage is equivalent to around $18 a month). Tip waiters, hotel cleaners and baggage carriers, car park attendants, toilet attendants and tour guides, and be aware of the differences between people who own their own business and those who work for the state.

For example, a taxi on the meter means the driver works for the state and a tip is appropriate; most taxis don’t have a meter as they are privately owned and paying your fare, which you should negotiate in advance, is enough. Similarly, the hosts at a casa particular wouldn’t expect a tip, though if they employ cleaning staff a tip for them is always a nice gesture

Keep your cool on the streets

If you are discernibly foreign then you are going to get some attention on the street. You’re likely to get pestered rather than hassled but after a while it can get tiring. Keep your cool – looking and sounding uninterested is usually enough to deter most street hustlers, known as jineteros.

Bear in mind that if they’re selling cigars they’re probably going to be fakes, and if they offer to take you to a paladar or casa particular their commission will be secretly added to your bill. Then again, some people really do just want to chat – so keep an open mind.