The management of Varadero's International Hotel, part of the state-run Gran Caribe chain, has informed staff members that their profit-sharing advance for the third quarter of 2026 will be deferred. This decision comes after the hotel reported a shortfall of 50 million pesos from its anticipated revenue for September.
This announcement, as detailed in a document shared by journalist Christian Arbolaez, bears the signatures of the Human Capital Director, Economic Director, the Union's General Secretary, and the PCC Secretary at the hotel.
The official statement explains that the choice to delay is meant to "safeguard the hotel's financial status and prevent the accumulation account from going negative."
Instead, the management plans to distribute the accumulated profits for both the third and fourth quarters at the end of the year.
An additional point made in the document is a recent salary adjustment, setting a minimum of 15,012 Cuban pesos and a maximum of 60,180 pesos. The management claims these figures surpass what employees would have earned from profit sharing.
After the document leaked on social media, it sparked immediate debate among Cubans both on the island and abroad.
Many questioned the hotel's reasoning. "This is the International, the hotel generating the most income from its nightclub and pool parties. How are the other hotels doing?" one user commented.
Another pointed out a perceived recurring issue: "It's always the same: at the end of the year, when there are profits, they include prior months' expenses to avoid losses, plus their vehicle costs and other purchases. Shameless and exploiting the workers."
Supporting this view, a former hotel industry employee said, "Exactly. I was one of those worker victims for many years in various hotels until I left." Another simply remarked, "What a lack of respect for the workers."
Conversely, someone claiming to be part of the hotel staff defended management, urging others not to politicize the situation: "This team fully trusts that the best measures will be taken to avoid harming the workers. Any decisions made were rightly and formally discussed with everyone's best interest in mind."
However, another voice cited fear as a decisive factor: "I doubt many will have the courage to publicly oppose this decision, which is why things are the way they are."
This incident arises at a particularly dire time for Cuba's tourism industry. From January to September 2026, only 477,707 international visitors arrived in Cuba, a staggering 65% drop from the previous year.
Varadero, Cuba's premier sun-and-sand destination, has been particularly hard-hit, with hotel occupancy rates falling below 10% at times this year.
Prime Minister Manuel Marrero Cruz admitted in July that 73% of the nation's hotel facilities remained closed, with approximately 25,000 workers in "availability" status—a government term for those out of active employment but still technically employed.
The regulation governing these payments, Resolution 2/2026 from the National Institute of State Enterprise Administration, published in July 2026's Official Gazette, allows for quarterly advances of up to 50% of available profits, contingent on the company having no tax debts and sufficient liquidity.
Key Questions About Varadero's Hotel Profit Delays
Why did Varadero's International Hotel delay profit sharing?
The hotel experienced a revenue shortfall of 50 million pesos, prompting management to defer profit sharing to safeguard financial stability.
What has been the impact on Cuba's tourism sector?
Cuba's tourism has faced a severe downturn, with a 65% drop in international visitors from January to September 2026, severely impacting destinations like Varadero.
How did the public react to the hotel's announcement?
The announcement sparked widespread debate on social media, with many criticizing the decision and others defending the management's approach.