Cuba's Tourism Crisis: Power Outages and Hotel Shortages Deter Visitors

The tourism industry in Cuba, a cornerstone of its economy, is experiencing a severe downturn. Over the past seven years, the country has seen a dramatic decline in international visitors, dropping from 4.7 million in 2017 to just 2.2 million in 2024. This situation is particularly impacting the Spanish market, which recorded a 27.1% decrease in tourists compared to the previous year.

According to Meliá, the leading hotel chain on the Island, "air travel operations with Cuba have decreased by approximately 12%, with some routes being canceled entirely. Countries such as the United Kingdom, Belgium, and Argentina have completely severed connections, while other regions have significantly reduced their capacity."

Several factors contribute to this decline. The economic and energy crisis has led to shortages of food, medicine, and fuel, directly impacting tourist services. Frequent power outages have worsened the visitor experience, resulting in widespread booking cancellations. Moreover, U.S. sanctions, initiated during Donald Trump's presidency, have made it difficult for American tourists to visit and have deterred foreign investment.

Prime Minister Manuel Marrero attributes the instability to these U.S. sanctions, which have restricted visa issuance to American citizens wishing to travel to Cuba. Competing destinations like the Dominican Republic, Puerto Rico, and Jamaica, offering superior services and more competitive prices, have lured away many tourists who once chose Cuba.

Even the cruise ship sector has been affected, with a reduction in Cuban port stops. American restrictions and the perception of instability have contributed to this loss of tourist traffic. Hotel conditions on the Island are also a concern. In Cayo Santa María, for instance, there have been reports of basic food shortages. Sources cited by Reportur highlight that "there is no flour, and some hotels lack bread and pastries."

Despite the government's efforts to sustain operations, the lack of investment in crucial sectors like energy and agriculture continues to undermine the country's tourism infrastructure. Without reversing this trend, Cuba's tourism recovery seems increasingly distant.

The severity of the situation is evident in the performance of the Spanish hotel chain Meliá Hotels International, which reported a significant decline in its Cuban operations during the first quarter of the year. The company experienced positive results in all other regions except Cuba, where negative performance directly impacted the group's global revenues.

Meliá notes that negative media coverage affects the perception of Cuba as a destination, contributing to the decline in visitor numbers from key markets during peak season, resulting in lower hotel occupancy. The occupancy rate in Meliá-managed hotels in Cuba fell to 40.5%, a decrease of 6.4 percentage points compared to the previous year. Additionally, revenue per available room (RevPAR) dropped by 20.8%, amounting to just 37.6 euros.

The company openly acknowledges the challenging situation, with no clear signs of short-term recovery. The international tourism sector in Cuba is facing a deep crisis, as reflected in alarming official data released by the National Office of Statistics and Information (ONEI) for the first quarter of 2025.

According to figures from the official entity, only 571,772 international visitors arrived between January and March, representing a 29.3% decline compared to the same period in 2024, when 808,941 tourists were recorded. International tourism utilized less than a quarter of the country's accommodation capacity during the traditionally strong quarter for traveler arrivals, as noted by economist Pedro Monreal.

As expected, the contraction in tourism directly impacted the revenues of Cuban tourism entities, which fell by 21.5% year-on-year, from 44,411 million Cuban pesos (MCUP) to 34,860 million.