Cuban Tourism in Crisis: A Majority of Hotels Shut Down, Official Data Reveals

The Cuban tourism industry is facing one of its most severe downturns in decades, with an alarming 73% of the country's hotels currently out of operation. This has resulted in approximately 25,000 hotel workers being laid off, and seven international hotel chains have ceased their operations on the island, as confirmed by the Cuban government.

These grim statistics were highlighted again this week by the state-run agency Prensa Latina, which on August 27 and 28 published two articles addressing the sector's crisis. The agency attributed much of the decline to the sanctions and pressures from the Trump administration on foreign companies engaged in business with Cuba.

The most significant numbers come from Prime Minister Manuel Marrero Cruz, who acknowledged before the National Assembly on July 29 that 73% of hotel facilities were closed and that seven international chains had stopped operations in Cuba, impacting 46% of the rooms managed under these agreements.

This crisis has not only resulted in significant hotel closures but has also left around 25,000 hotel employees without work. The scale of the shutdown and its implications for labor were initially revealed at the end of July when Marrero presented these figures to legislators.

Among the major companies that have withdrawn are Meliá, Iberostar, and Barceló. Meliá announced on July 21 to Spain's National Securities Market Commission that it would fully exit Cuba by July 24, 2026, ceasing all management and marketing services in its Cuban establishments, which once included 34 hotels.

Iberostar ceased operations in 12 of its 18 Cuban hotels as of June 1, and subsequently shut down the remaining six. Similarly, Barceló terminated its contracts for two establishments in Varadero and exited the island.

The government did not publicly disclose the names of the seven chains when presenting these figures. However, EFE identified some of the departing companies as Meliá, Iberostar, Barceló, the Canadian Blue Diamond, the Indonesian Archipelago International, and the Turkish ATG.

Meanwhile, Minor Hotels had already withdrawn from managing two NH-branded hotels in Havana by February. Prensa Latina also listed CEIBA Investments Limited among the affected groups; however, it's important to clarify that CEIBA was not managing these hotels.

CEIBA Investments Limited announced on July 22 that it still holds stakes in five Cuban hotels previously managed by Meliá and is currently evaluating the implications of the Spanish hotelier's withdrawal.

The impact on the sector extends beyond hotel closures. Cuba received only 387,591 international visitors from January to June 2026, a stark contrast to the 985,606 visitors during the same period in 2025, marking a 60.7% year-over-year decline.

The National Office of Statistics and Information (ONEI) reported that the 387,591 visitors this year represent just 39.3% of those recorded during the same timeframe in 2025. This necessitates a correction in Prensa Latina's second report, which claimed a 58% drop in tourism between January and June, whereas the official ONEI data indicates a 60.7% decrease.

The 58% figure aligns with earlier reports for a shorter period up to May. Canada's market experienced the most significant absolute decline, dropping from 428,118 visitors in the first half of 2025 to 126,937 in 2026—a loss of exactly 301,181 people and a 70.3% decrease.

Hotel occupancy rates have also plummeted, reaching just 12.9% in the first quarter of 2026 compared to 23.7% in the same period in 2025, according to ONEI data gathered by EFE.

Alongside the struggle to attract tourists, foreign companies face significant financial challenges. Spanish hotel chains had between 80 and 100 million euros immobilized in the Cuban banking system, funds that were unable to be repatriated and had already been written off in their financial statements, as reported in an analysis at the end of June.

These figures should not be confused with the total investment by Spanish companies in Cuba. Spain's cumulative investment from 1993 to 2024 amounted to 465 million euros, with lodging services being the primary sector of this investment.

The fuel crisis has also directly affected air connectivity. In February, Air Canada, WestJet, and Air Transat temporarily suspended flights to Cuba due to a shortage of aviation fuel at the island's airports.

The impact on the main source market was immediate: only 511 Canadian visitors arrived in Cuba in March, compared to nearly 99,000 in the same month of 2025.

In response to these challenges, the Ministry of Tourism has sought to convey a message of resilience. José Antonio Aguilera, Cuba's Tourism Counselor for the Southern Cone, assured that "hotels on the island remain open and the destination continues to operate normally," a statement later reiterated by Prensa Latina.

"Cuba has acquired the necessary 'know-how' to ensure the service standards and quality that characterize our destination. Hotels continue to operate under national brands, without service interruptions," Aguilera stated.

Yet, the same publication acknowledges that 73% of hotel facilities remain closed, listing some that are still operational in destinations such as Havana, Varadero, Trinidad, Holguín, Viñales, and Santa Lucía.

Additionally, the government is seeking new managers for parts of the infrastructure. Prensa Latina highlighted the Italian chain Domina, which is managing or planning establishments in Varadero and Havana.

Domina Caribe's website currently features the Domina Marina Varadero and two projects in Havana, Domina Metropolis, and Domina Real Aduana.

Despite the statistics, the state agency maintains an optimistic tone, suggesting that some tour operators and travel agents believe that Cuba's landscapes, natural environment, and the hospitality of its people could contribute to a future recovery.

Their articles even propose that the "U.S. offensive against Cuban tourism could fail."