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Cuba's Hotel Mirage: Billions Spent on Empty Rooms

Monday, August 25, 2025 by Mia Dominguez

Cuba's Hotel Mirage: Billions Spent on Empty Rooms
Empty hotels and full debts: Cuban tourism sinks with only 21% occupancy - Image by © CiberCuba

Cuba's tourism industry is facing significant challenges, as evidenced by official data from the first half of 2025. The figures show a dramatic decline in international visitors, revenue, overnight stays, and hotel occupancy rates, which have plummeted to a mere 21.5%, one of the lowest in the region. This starkly illustrates the failure of the billions of dollars poured into this sector. Cuban economist Pedro Monreal summed up the situation succinctly on X: "Billions of dollars poorly invested."

According to the latest report from the National Office of Statistics and Information (ONEI), international arrivals from January to June 2025 dropped by 25% compared to 2024, falling from 1.3 million to just over 981,000 travelers. This decline led to a 27.8% reduction in overnight stays, which decreased from 7.9 million to 5.7 million.

Cuba's Tourism Sector in Crisis

Hotel occupancy rates have fallen to a critical 21.5%, down from 28.4% the previous year, leaving many rooms empty. Despite this, the government persists in building new hotels at the expense of the majority of citizens who are becoming increasingly impoverished. Meanwhile, there is a lack of sufficient investment in essential infrastructure such as energy, telecommunications, transportation, and roads, as well as in critical sectors like food production and healthcare.

Tourism revenue has also taken a significant hit, dropping from over 70.8 billion Cuban pesos to 56.2 billion, a decline of 20.6% in just one year. Canada remains the top source of tourists, although numbers have decreased by 26% compared to 2024. The United States, Russia, Germany, France, and Spain have also seen a drastic reduction in visitors, while only a few markets, including Colombia, China, Portugal, Turkey, and Peru, showed slight growth.

Government's Misguided Priorities

In contrast to these figures, the Cuban government continues to allocate vast resources to hotel construction amidst an internal economic crisis. These tourism infrastructures remain underutilized, with no clear short-term recovery prospects. Preliminary data from ONEI revealed that between January and July of this year, Cuba welcomed 1,577,330 travelers, only 82.8% of the total received during the same period in 2024, representing 328,126 fewer visitors.

The decline has been particularly severe in some of the main source markets. Russia, which had recently gained prominence as a tourist source, shows the most notable decrease, with only 71,797 visitors, just 58.2% of those who arrived in the same period last year. Germany and Spain follow with plummets of 60.7% and 72%, respectively.

Mounting Criticism and Poor Conditions

Cuba's tourism industry struggles to sustain itself amid falling visitor numbers, poor hospitality services, and low competitiveness. Even Tourism Minister Juan Carlos García Granda admitted that 2024 was “the worst moment since September 11, 2001.” The focus on tourism has led to the systematic deterioration of other productive sectors, yet the regime remains committed to a strategy that fails to yield results, despite warnings from several deputies about the need to settle debts, decentralize payment schemes, and adjust supply to meet actual demand.

Experts and citizens have criticized this approach, arguing that it does not meet the real needs or urgent demands of the country. The contrast is stark: majestic hotels are rising while overflowing garbage piles up on Havana's corners, and more citizens are forced into a life of poverty.

Complaints about the deteriorating hotel infrastructure, lack of hygiene, poor customer service, and substandard food are not isolated incidents. There have also been reports of thefts and assaults on tourists, adding insecurity as another deterrent. A Russian tourist recently shared her disappointing experience at a five-star hotel in Varadero: "The faucets were leaking, the hairdryers didn't work, and everything was dirty. I felt cheated," she said. She also reported spoiled food, insects, and poor service: “They treat tourists like pigs.”

FAQs on Cuba's Tourism Decline

Why is the hotel occupancy rate in Cuba so low?

The hotel occupancy rate in Cuba is low due to a significant decline in international visitors, poor hospitality services, and the country's lack of competitiveness in the tourism market.

How has Cuba's tourism revenue been affected recently?

Cuba's tourism revenue has dropped significantly, with a 20.6% reduction over the past year, falling from over 70.8 billion Cuban pesos to 56.2 billion.

Which countries have reduced their number of travelers to Cuba?

Countries such as the United States, Russia, Germany, France, and Spain have significantly reduced their number of travelers to Cuba recently.

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