On Friday, official Cuban media announced the passing of Alexis Lobaina Martínez de Valdivielso, a member of the Central Committee of the Communist Party of Cuba (PCC) and an affiliate of the Business Administration Group S.A. (GAESA), the military conglomerate that oversees more than 70% of the Cuban economy. At the time of his death, he held the position of Territorial Delegate for the Gaviota hotel group in Varadero, the nation's leading tourist destination.
President Miguel Díaz-Canel extended condolences to family, friends, and colleagues via a message on the social platform X. Lobaina's career was distinguished by various military, administrative, and leadership roles within the state-run tourism system linked to the Revolutionary Armed Forces (FAR).
His professional journey included being an aviation pilot at military unit (UM) 1890 in Santa Clara, a staff officer at UM-2800, and the director of the FAR's Playa Azul hotel. He also held managerial positions at hotels Laguna Dorada, Playa Marina, and Paradisus, as well as serving as the general director of the Gaviota Stores Unit in Varadero.
Internationally, Lobaina was appointed as the general director of the Imbondex Turística company, part of the ANTEX S.A. corporation in Angola, a common destination for the Cuban military's commercial expansion. He received numerous honors for his contributions, including the Distinguished Service medal and the Ignacio Agramonte second-class medal, among others for years of service and participation in military maneuvers. He had been a member of the PCC Central Committee since 2021.
GAESA: The Economic Powerhouse Behind Cuba's Struggles
GAESA, the most influential economic entity in Cuba and directly subordinate to the FAR, is deemed a financial stronghold of the Cuban regime, disconnected from the daily hardships faced by millions of Cubans enduring power outages, shortages of essential goods, and a collapsing healthcare system. This entity has authority over banks, currency exchanges, hotels, real estate, port companies, shipping lines, and airlines.
Financial records obtained and published by the Miami Herald in late December 2024 unveiled that military-linked companies like Gaviota have around $4.3 billion in their accounts, a figure nearly 13 times the $339 million the Cuban government has requested to stock pharmacies with essential medications. The FAR-controlled companies have amassed vast sums, exacerbating the national debt and worsening citizens' lives, the outlet reported.
Leaked GAESA documents illustrate how these organizations have diverted resources intended to alleviate the economic crisis. In July 2024, Gaviota possessed 88.6 billion pesos in assets, including 51 billion in long-term investments. The island's International Financial Bank, controlled by GAESA, manages a large portion of these funds, including remittances and foreign government payments for Cuban medical missions.
Tourism vs. Essential Services: A Stark Contrast
Despite the devastating impacts of the pandemic and sanctions, 36% of all government investments in 2023 were allocated to building new hotels, while a mere 2.9% went to agriculture and 1.9% to health and social assistance programs. As public services deteriorate, the Cuban government, through GAESA, continues to channel millions into hotels and resorts.
In 2024 alone, investments in tourism-related activities exceeded 36.8 billion Cuban pesos, compared to only 1.977 billion for public health and 2.645 billion for agriculture. The disparity between the luxury of hotels like the K-23 Tower in Havana and the neglect of aging power plants has sparked mounting criticism.
This shift towards high-end tourism has led to the Cuban tourism model facing its most significant discredit in years, with occupancy rates falling below expectations. According to official data from the National Office of Statistics and Information (ONEI), the hotel occupancy rate plummeted to just 24.1% in the first quarter of 2025, while tourist numbers dropped 29.3% year-on-year. Tourism revenue also fell by 21.5%.
Understanding Cuba's Economic Challenges
What role does GAESA play in the Cuban economy?
GAESA is a military-controlled conglomerate that dominates over 70% of Cuba's economy, managing diverse sectors including banking, tourism, real estate, and more. It is considered a financial backbone for the Cuban regime.
How are GAESA's investments affecting Cuban citizens?
GAESA's focus on investing heavily in tourism infrastructure, while allocating minimal resources to essential services like health and agriculture, has led to increased national debt and deteriorating living conditions for the Cuban population.
What is the current state of Cuban tourism?
Cuban tourism is facing significant challenges, with occupancy rates and tourist arrivals declining sharply. The sector's revenue has also seen a substantial drop, reflecting the broader economic struggles of the country.