Cuba Shuts Most Hotels as Tourism Sector Faces Deep Crisis

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Havana: Cuba has closed nearly three-quarters of its hotels as the country's tourism industry struggles under tougher US sanctions, fuel shortages and a sharp fall in visitor numbers, Prime Minister Manuel Marrero has said.

Marrero said about 73 per cent of hotels across the island have been shut, leaving around 25,000 tourism workers in a vulnerable position. He also revealed that seven international hotel chains, which managed about half of Cuba's hotel rooms, have withdrawn from the country.

Tourism, once Cuba's second-largest source of foreign currency and a major employer, has been hit hard this year. Official figures show international tourist arrivals fell by 58 per cent in the first six months of 2026 compared with the same period last year.

The crisis worsened after Havana announced an aviation fuel shortage in February, prompting several airlines from Canada, Russia and Europe to suspend flights to the island. In May, the United States imposed sanctions on the military-run conglomerate GAESA, leading several international hotel operators to end their management agreements.

Spanish hotel group Meliá also announced its complete withdrawal from Cuba, citing legal, financial and operational challenges linked to the tightening sanctions and the country's worsening economic conditions.

Fuel shortages have further strained the island, disrupting transport and electricity generation. Cuba has experienced several nationwide blackouts this year, while businesses across multiple sectors have begun reassessing their operations as economic conditions continue to deteriorate.

Pic Credit: AFP