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Cuban Regime Plans New Hotels Amid Severe Economic Crisis

Tuesday, July 30, 2024 by Claire Jimenez

Cuban Regime Plans New Hotels Amid Severe Economic Crisis
Hotel in Cuba (Reference Image) - Image © X/Ministry of Tourism

Officials from the Gaviota hotel group informed Canadian tour operators about the opening of new hotels in the coming months on the island, according to Travel Week, a portal specializing in tourism and travel. The site reports that Gaviota is focusing heavily on destinations in Havana, Varadero, Cayo Santa María, and Holguín, while not neglecting other tourist areas in Cuba.

They also mentioned that Cubans are collaborating with 16 foreign hotel chains, meaning that 80% of Gaviota's hotel rooms are managed by international hotel companies. “Gaviota's main goal is to develop new products in their properties, specifically for their Playa brand. New modules for families with children will be implemented, featuring special rooms for them and Premium levels,” the report details.

Moreover, there is a focus on the younger audience, with an emphasis on development with the Canadian company Blue Diamond Hotels, with whom they are organizing specialized music festivals and launching a new hotel brand called 'Resonance,' which will offer music and entertainment for the younger generation in one section, and relaxation and wellness in the other.

In this regard, Cuban officials mentioned that the new hotel openings will primarily take place in Havana and Holguín. They stated that by the end of this year, the Hotel Metropolis will open its doors in the Cuban capital, featuring 219 rooms and managed by Kempinski, marking the second hotel managed by this company in the city.

Additionally, the second section of the Muthu Havana, called Muthu Tower, with 515 rooms, is projected to open before the end of 2024. The controversial Hotel K23, a skyscraper owned by Grupo de Administración Empresarial S.A. (GAESA) and managed by Iberostar, with 594 rooms, is set to open on November 20, four days after the city's 505th anniversary. The announcement of its inauguration has sparked outrage among citizens due to the stark contrast between Cuba's depressed economic and social reality and the luxury projected by this establishment.

In Havana, the Hotel Corona, managed by the Turkish hotel chain ATG, is also expected to open next year. This five-star establishment will feature 147 rooms. At the Aduana del Puerto, a new hotel called Real Aduana is set to open at the beginning of next year in the new cruise port, located where the Cuban customs office was in the old port.

In Holguín, a yet-to-be-named hotel is anticipated to open by the end of next year at Ramón de Antillas. Additionally, officials warned that to improve service and customer offerings, Gaviota plans to open training schools across Cuba to educate their workers with the best instructors on the island.

These projections for new hotel openings on the island reflect a growing trend where investment is heavily skewed towards tourism over social programs, seemingly disregarding the impact on the quality of life of Cubans. Throughout 2023, as the most recent year concluded, the state prioritized tourism despite the ongoing crisis in the Public Health System that directly affects people and the shortages in the Education Sector, where children lack sufficient notebooks for studying.

Additionally, during the first half of that year, hotel occupancy was extremely low, with seven out of ten rooms remaining vacant, according to official sources. "The statistics confirm the persistence of a very distorted investment structure in Cuba, where one-third is concentrated in activities primarily linked to tourism," said economist Pedro Monreal regarding this situation.

Impact of New Hotel Openings in Cuba During Economic Crisis

Below are some frequently asked questions and answers regarding the recent hotel developments in Cuba amidst its ongoing economic challenges.

Why is the Cuban regime focusing on building new hotels during an economic crisis?

The Cuban regime is prioritizing tourism as a means to generate foreign currency and boost the economy, despite the severe economic crisis affecting other sectors such as health and education.

Which areas in Cuba will see new hotel openings?

New hotel openings are planned primarily in Havana and Holguín, but also in Varadero and Cayo Santa María.

What is the public reaction to the opening of the Hotel K23?

The public has reacted with indignation to the opening of the Hotel K23, as it contrasts sharply with the economic and social hardships faced by the majority of Cubans.

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