The Thai-based Minor Hotel Group has made the decision to withdraw from Havana, ceasing its management of the two NH hotels in Cuba's capital: NH Capri and NH Collection Victoria, both situated in the Vedado district.
NH Capri consists of 200 rooms, whereas NH Collection Victoria offers 31 rooms.
According to EFE news agency, this withdrawal occurs amid a challenging business climate on the island, highlighted by a significant decline in tourism over recent years.
In 2025, Cuba experienced its lowest international tourist arrivals since 2002, with a mere 1.8 million visitors, a steep drop from the 4.7 million record set in 2018 during the thaw with the United States.
Hotel occupancy rates barely exceeded 20%, a stark contrast to the 70-75% range considered optimal for the industry.
During the first half of 2025, arrivals fell 25% compared to 2024, totaling 981,856 tourists, making it impossible to reach the government's target of 2.6 million for the entire year.
Canada, the leading source market, experienced a 25.9% decrease; only Colombia (+2.4%) and Argentina (+13.6%) saw growth, while Europe and Russia witnessed significant declines.
The month of December, typically marking the start of the high season, starkly illustrated the severity of the issue. It was the worst December since 2021, with international arrivals falling far short of expectations.
This trend, as noted by economist Pedro Monreal, points to "a weak start to the high season," forecasting a challenging 2026 for the national economy.
The low turnout in the year's final month not only undermines official forecasts but also raises doubts about the sustainability of a sector crucial for foreign currency earnings.
The economic and energy crisis, along with cuts in air routes and U.S. sanctions, have affected the sector, with hotel occupancy rates plummeting below 20-25% (optimal: 70-75%).
This follows a total of 2.2 million visitors in 2024, marking the worst in 17 years, contrasting sharply with the peak of 4.7 million in 2018 during the U.S. thaw.
Impact of Tourism Decline on Cuba's Economy
Why did Minor Hotel Group decide to leave Cuba?
The decision was influenced by a complex business environment in Cuba, characterized by a significant drop in tourism numbers in recent years.
How has the tourism decline affected Cuba's economy?
The decline has led to hotel occupancy rates falling well below optimal levels, impacting a sector that is vital for the country's foreign currency earnings.
What were the tourist arrival numbers in 2025?
Cuba saw only 1.8 million international arrivals in 2025, which is the lowest since 2002 and a significant drop from the 2018 peak of 4.7 million.