Key facts
- Nearly three-quarters of Cuba's hotels have closed.
- US sanctions and fuel shortages are major contributors to the tourism crisis.
- Seven international hotel chains have ceased operations on the island.
- Tourism was Cuba's second-largest source of foreign currency earnings.
- International visitor numbers dropped 58% in the first half of 2026 compared to the previous year.
Cuba's tourism industry has been brought to 'almost total paralysis' due to a combination of US sanctions and fuel shortages, according to Prime Minister Manuel Marrero. Nearly three-quarters of the island's hotels have closed, with seven international chains, responsible for approximately half of all hotel rooms, withdrawing their operations. This crisis has severely impacted Cuba's economy, as tourism was historically its second-largest source of foreign currency earnings and a significant employer.
The decline in visitors has been steep, with a 58% drop in international arrivals in the first half of 2026 compared to the same period in 2025. This follows a 'catastrophic' 2025, which saw the lowest number of tourists since 2002. The situation was exacerbated by flight suspensions from Canadian, Russian, and European airlines due to aviation fuel shortages. Furthermore, US sanctions imposed on the military-run conglomerate GAESA prompted several international operators to terminate their management agreements to avoid penalties.
Spanish hotel groups Meliá, Iberostar, and Barceló have confirmed their withdrawal from Cuba, marking the end of over three decades of their presence on the island. Meliá cited persistent operational, legal, economic, and financial difficulties as reasons for its decision to cease operations at its 34 hotels.