Hotel chains operating in Cuba are resorting to unprecedented price cuts and complimentary services in a bid to lure the dwindling number of tourists visiting the island. This is yet another sign of the severe collapse facing the tourism sector.
According to reports from the specialized outlet Reportur, both Varadero and Havana are experiencing historically low occupancy rates. This has pushed hotel companies to implement what the industry terms "aggressive offers" in an attempt to stave off further losses.
Discounts of 25% or more are being applied during certain seasons, impacting both early bookings and last-minute deals, especially in Varadero, where competition among the few open establishments is fierce.
"All-inclusive" packages in regions like Cayo Coco and Cayo Santa María are now offering full stays with meals, drinks, and activities at rates lower than in previous years, with the sole aim of maintaining a minimum occupancy level.
Beyond reduced prices, several hotels are adding extra incentives, such as free airport transfers, complimentary room upgrades, and vouchers for hotel consumption.
In Havana, urban hotels are combining low prices with additional services to attract both tourists and business travelers, adapting to a more constrained and fluctuating market.
The backdrop to these strategies is a historic drop in hotel occupancy in Cuba, which ended 2025 with only 18.9% occupancy, the worst rate recorded in decades, with just 1.81 million international visitors, the lowest figure since 2002.
The situation worsened dramatically in 2026. The first quarter saw just 298,057 tourists, a 48% decrease compared to the same period in 2025, while March plummeted to 35,561 visitors, with symbolic numbers like only 249 Russian tourists and 511 Canadians for the entire month.
The immediate catalyst for this decline was the energy crisis. Fuel shortages led to the cancellation of over 1,700 flights and the suspension of operations by at least 11 airlines, including Air Canada, Air Transat, WestJet, Iberia, Air France, and Turkish Airlines.
In response to the collapse, the regime initiated a "tourist compacting" strategy from February, closing low-occupancy hotels and concentrating remaining tourists in selected facilities to conserve energy.
The military conglomerate Gaviota shut down 20 hotels in Cayo Santa María, leaving over 7,000 workers jobless overnight.
The state agency Havanatur released a list in March of the open hotels in Havana and Varadero, with only 13 establishments between the two destinations.
In Havana, operational hotels include the Gran Muthu Habana, Deauville, Mystique Habana, Iberostar Selection Parque Central, Nacional de Cuba, Meliá Habana, and Meliá Cohíba, among others. In Varadero, active hotels include the Club Tropical, Barceló Solymar, Meliá Varadero, Meliá Internacional, Iberostar Selection Varadero, and Paradisus Varadero.
Despite the reduced rates and free services, the country's structural problems, such as power outages lasting up to 20 hours, food shortages, and deteriorating infrastructure, continue to severely limit the quality of the tourist experience for those who choose to visit the island.
Cuban tourism has seen a 62% decline since 2018, when the island welcomed 4.7 million international visitors. As of 2026, hotel occupancy stands at only 21.5%, with more than eight out of ten rooms remaining vacant.
Understanding Cuba's Tourism Crisis
Why are Cuban hotels reducing prices and offering free services?
Cuban hotels are lowering prices and providing free services to attract the few tourists still visiting the island amid a severe downturn in the tourism sector.
What has caused the decline in Cuban tourism?
The decline in Cuban tourism is attributed to a combination of factors, including an energy crisis leading to flight cancellations, structural issues like power outages and food shortages, and deteriorating infrastructure.
Which airlines have suspended operations to Cuba?
Airlines like Air Canada, Air Transat, WestJet, Iberia, Air France, and Turkish Airlines have suspended operations to Cuba due to fuel shortages.