The Cuban Prime Minister, Manuel Marrero Cruz, admitted before the National Assembly of People's Power on Wednesday that a staggering 73% of Cuba's hotel facilities remain closed. This situation has left approximately 25,000 workers in a state of limbo, meaning they are at home without full employment.
Marrero pointed to the acute fuel shortages and the tightening of U.S. sanctions as primary contributors to the tourism sector's collapse throughout 2026. These factors have severely impacted Cuba's tourism industry.
According to the Prime Minister, seven international hotel chains have ceased their operations on the island, representing 46% of the rooms that were previously managed under these partnerships. Among the companies that have exited Cuba are Blue Diamond Resorts—operating 62 hotels and over 12,900 rooms—Meliá Hotels International, which confirmed the closure of its 34 properties on July 21, and Iberostar, which has stopped running 12 out of its 18 hotels on the island since June 1.
This exodus of international operators was accelerated by Executive Order 14404, signed by President Donald Trump on May 1, 2026. The order introduced secondary sanctions for foreign companies that maintained commercial ties with GAESA, the military conglomerate controlling Cuban tourism through Gaviota S.A.
On May 7, the U.S. State Department designated GAESA, setting a deadline of June 5 for foreign businesses to sever their connections with the entity, threatening exclusion from the U.S. financial system as a consequence.
The decline in tourism during 2026 has been dramatic. From January to May, Cuba welcomed merely 360,000 international visitors, marking a 58% decrease compared to the same period in 2025. This data, reported by the Cuban government and cited by CNN en Español, adds to the disastrous year of 2025, when the island saw only 1.81 million international tourists, the lowest figure since 2002, falling short of the official target of 2.6 million.
Iconic destinations like Varadero starkly illustrate the collapse. At Paradisus Varadero, more than half of the 886 workers were without active employment ties in May 2026, while at Gran Astro, over 300 employees were either furloughed or at home.
In response to this situation, Marrero announced that 10 out of the 13 planned transformations for the tourism sector have already been approved. These are part of a broader package of economic reforms, totaling 110 out of the 121 measures planned for June and July.
The approved measures include new business models involving non-state actors, tax incentives for ecotourism, authorization for private vehicle rental services, regulation of private travel agencies, and certification of tour guides. Additionally, the government has introduced a special 1% tax aimed at funding the sustainability and promotion of the country's tourist destinations. However, the effectiveness of these measures will depend on their ability to attract investment and visitors despite ongoing sanctions and an energy infrastructure that fails to ensure minimal operating conditions.
"The country is implementing these transformations in a particularly challenging scenario, exacerbated by the intensification of the United States' policy against Cuba, affecting strategic sectors such as energy, food production, tourism, finance, public health, and foreign trade," Marrero stated to the deputies.
Challenges in the Cuban Tourism Sector
What is the current state of hotel operations in Cuba?
As of now, 73% of Cuba's hotel facilities are closed, significantly impacting the tourism sector and leaving many workers without full employment.
How have U.S. sanctions affected Cuban tourism?
The tightening of U.S. sanctions has directly impacted Cuban tourism by leading to the withdrawal of several international hotel chains, reducing the number of available hotel rooms and contributing to the industry's decline.
What measures has the Cuban government taken to address the tourism crisis?
The Cuban government has approved various measures, including new business models with non-state actors, tax incentives for ecotourism, and authorization for private vehicle rental services, among others, in an attempt to revitalize the tourism sector.