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Cuban Tourism Faces Dire Straits: Flight Reductions, Power Outages, and Empty Hotels

Monday, May 18, 2026 by Sofia Valdez

Cuban Tourism Faces Dire Straits: Flight Reductions, Power Outages, and Empty Hotels
Vintage cars for rent in Cuba - Image of © CiberCuba

The Cuban tourism industry is experiencing its most challenging summer in decades, beset by a trifecta of fuel shortages, a mass exodus of airlines, and the impact of U.S. sanctions on Spanish hotel chains operating on the island.

An analysis published by El Mundo on Monday highlights that power outages are just one of the many issues plaguing Cuba's tourism sector. In addition to the energy crisis, at least 11 airlines, including Air Canada, Air France, and Turkish Airlines, have suspended flights to Cuba in 2026.

Iberia is set to completely halt its Madrid-Havana route starting in July, and Cubana de Aviación announced on May 12 the immediate cancellation of its sole Cuba-Spain flight. This decision follows Plus Ultra's suspension of the route, citing force majeure due to Executive Order 14404, signed by the U.S. President on May 1, 2026.

Unlike airlines, Spanish hotel chains find it more challenging to withdraw. Meliá, with over 30 hotels, and Iberostar, managing around 20, operate under joint management with Gaesa. This Cuban military conglomerate also oversees remittances, gas stations, and internet services.

The involvement of Spanish hotel chains with Gaesa places them squarely under Washington's scrutiny. On May 7, Secretary of State Marco Rubio issued a statement announcing new sanctions, estimating Gaesa's revenue at $20 billion. The sanctions explicitly ban contributions, funds, or services to individuals targeted by the U.S. administration, such as Ana Guillermina Lastres, the military leader of the conglomerate.

Meliá's business in Cuba saw a 10% decline in 2025, with revenues falling to 11.5 million euros, a 40% occupancy rate, and revenue per room of just 29 euros. By the first quarter of 2026, Meliá had 50% of its operational capacity halted. NH Hotels, now under the ownership of Minor Hotels, has already exited Cuba.

The first quarter of 2026 marked a further decline in Cuban tourism. Only 298,057 tourists visited the island from January to March, representing 52% of the previous year's figures for the same period, with hotel occupancy at a mere 21.5% — leaving more than eight out of ten rooms unoccupied.

By March 2026, Cuba had received only 35,561 tourists, a staggering 79% year-over-year decline. Russian tourism, once a replacement market after the pandemic, plummeted to just 249 visitors that month, compared to 15,688 in January.

Amidst the crisis and looming collapse of the sector, Prime Minister Manuel Marrero vowed at the FITCuba 2026 fair on May 8 that a "strong winter" for tourism in Cuba is forthcoming and assured that investments in this critical economic area would persist.

Challenges in Cuban Tourism: Key Questions Answered

Why are airlines suspending flights to Cuba?

Airlines are suspending flights to Cuba due to a combination of factors including fuel shortages, U.S. sanctions, and operational challenges that make it difficult to maintain routes.

How have U.S. sanctions affected Spanish hotel chains in Cuba?

U.S. sanctions have placed pressure on Spanish hotel chains by restricting financial contributions and services to entities associated with the Cuban military, impacting their operations and revenue.

What measures is the Cuban government taking to address the tourism crisis?

The Cuban government, through Prime Minister Manuel Marrero, has promised continued investments in the tourism sector, aiming for a strong recovery despite the current challenges.

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