CubaHeadlines

Cuba's New Hotel Strategy: Genuine Solution or Merely a Facade?

Tuesday, July 7, 2026 by Joseph Morales

The economist Elías Amor critiqued the tourism initiatives included in Díaz-Canel's package of 176 economic reforms, describing them as the most eye-catching yet part of a grim assessment: the regime’s plans for the broader economy are akin to performing high-level surgery on a corpse, attempting to stop bleeding and prevent infection.

Amor expressed these views during his final analysis of the 176 measures approved by the National Assembly on June 19, 2026, in a program hosted by Tania Costa on CiberCuba.

A Closer Look at Tourism Proposals

Focus area 17, solely dedicated to tourism, consists of 13 measures that Amor describes as technically sound. However, he cautions that the regime will only implement those that do not threaten the communist framework.

Among these measures is the introduction of onerous usufruct rights over hotel facilities, a tactic previously employed with Spanish companies on the island. Additionally, the package suggests granting areas with developmental assets across different regions, a strategy now open to all investors, Cuban or foreign. Amor highlighted, "They no longer differentiate between Spanish, foreign, or Cuban companies; this is open to everyone."

Challenges in a Struggling Tourism Sector

This territorial openness is seen as a move to leverage Cuban territory for the tourism sector. However, the direct sale of properties remains absent, unlike in the Dominican Republic or Costa Rica, where it is allowed.

The measure 134, which aims to include economic development zones in the foreign investment portfolio, was met with skepticism. Amor noted, "This is already the case. The only development zone in Cuba is Mariel, where such special regimes exist."

The tourism package also introduces international franchises of Cuban brands like Tropicana, El Floridita, and La Bodeguita del Medio, along with tax incentives for ecotourism projects and the liberalization of private travel agencies and independent tour guides.

These initiatives come amid the worst tourism crisis in Cuba in decades. In the first five months of 2026, international visitor numbers plummeted by 58.4%, with only 359,491 tourists recorded and a hotel occupancy rate of 12.9%.

Impact of the Current Tourism Decline

May 2026 saw just 30,883 foreign tourists, the lowest monthly figure in decades. The military-owned Gaviota chain closed over twenty hotels in Cayo Santa María, leaving more than 7,000 workers unemployed. At least 11 airlines, including Iberia, Air France, and Air Canada, suspended their routes to the island, largely due to the lack of Jet A-1 fuel at nine international airports.

Hotel chains such as Meliá, Iberostar, and NH temporarily withdrew from Cuba amid this collapse.

Internal Conflicts and Future Prospects

Amor pointed out the emergence of two factions within the regime: the "reformers," who are open to change, and the "reactionaries," who insist that any measures comply with the Constitution and the socialist nature of the state.

The economist believes this internal conflict will determine how many of these tourism proposals will materialize into reality. Without amending the constitutional articles supporting the state's model, no structural change is feasible, he concluded.

Frequently Asked Questions about Cuba's Tourism Reforms

What are the key tourism reforms proposed in Cuba?

Key reforms include granting usufruct rights over hotel facilities, opening investment opportunities across Cuban regions to all investors, and introducing international franchises of Cuban brands.

Why are some airlines suspending routes to Cuba?

Airlines such as Iberia and Air France have suspended routes to Cuba mainly due to the shortage of Jet A-1 fuel at several international airports on the island.

How has the tourism crisis affected employment in Cuba?

The tourism downturn led to the closure of over twenty hotels in Cayo Santa María by the Gaviota chain, resulting in over 7,000 workers losing their jobs.

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