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State-Owned Gran Caribe Invests in Upscale Hotel Renovations Amidst Cuba's Tourism Crisis

Monday, May 19, 2025 by Mia Dominguez

Despite the evident collapse of Cuba's tourism industry, the state-run hotel group Gran Caribe has unveiled ambitious plans to refurbish luxury accommodations and revitalize natural spaces. This move is part of their strategy to "enhance the tourism product's image" and "solidify the prestige" they have established over more than three decades of operation.

According to a report by Canal Caribe, during the recent FitCuba 2025 event, the state chain outlined its roadmap for the year, featuring significant overhauls at iconic hotels like the Jagua in Cienfuegos. It also highlighted the relaunch of Sol Cayo Coco in partnership with Spanish company Meliá, and the transformation of the 14th floor of the Deauville Hotel into an exclusive culinary space.

Additionally, Gran Caribe announced plans to rejuvenate the Escaleras de Jaruco Natural Park in Mayabeque, incorporating hiking trails, climbing zones, canopy tours, and camping. This ecotourism initiative targets international visitors amid one of the most severe economic crises the country has faced since the 1990s.

The group also formalized a new management contract with Blau Hotels for the Las Morlas hotel in Varadero, aiming to attract European tourists in a global context that favors more accessible and stable destinations.

Despite a 30% drop in tourist arrivals compared to the same period in 2024, the Ministry of Tourism remains relentless in its attempt to polish the country's image as a safe and exclusive destination. This is happening while ignoring the steady decline since the pandemic and the increasing tourist migration to places like the Dominican Republic, Mexico, or Colombia.

A March MINTUR statement acknowledged that reaching the target of 3.5 million tourists in 2025 is now "very difficult," casting doubt on the viability of new hotel investments aimed at international markets that are increasingly turning away from the Island.

Meanwhile, the regime, through Prime Minister Manuel Marrero Cruz, distances itself from the sector's collapse, once again blaming the U.S. "blockade." Gran Caribe claims to be "repositioning its tourism product," yet their plans neglect national tourism and genuine sector recovery, focusing instead on maintaining appearances for fairs and reports.

Yosjady Ferrer García, the group's Vice President of Marketing, hinted at "many surprises" yet to be announced this year, including celebrations for the 150th anniversary of Hotel Inglaterra and the 95th of Hotel Nacional de Cuba—venues mainly reserved for foreign tourists or regime ceremonial visits.

While they announce executive floor breakfasts and climbing championships, the country is plagued by daily blackouts, food shortages, transportation paralysis, and rampant inflation. In this context, the hotel renovations seem disconnected from the population's pressing needs.

Understanding Cuba's Tourism Challenges

Why is Cuba's tourism industry struggling?

Cuba's tourism industry is experiencing a downturn due to economic struggles, the COVID-19 pandemic, and increased competition from more accessible and stable destinations like the Dominican Republic, Mexico, and Colombia.

What are Gran Caribe's plans for future tourism?

Gran Caribe plans to renovate luxury hotels, form international partnerships, and promote ecotourism through projects like the revitalization of Escaleras de Jaruco Natural Park, focusing mainly on attracting international tourists.

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