Cuba Reports Decline in Tourism and Closures of Hotel Facilities

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In the first half of 2026, international tourism in Cuba declined by 60.7 percent, with total visitor numbers falling to 387,591. The Cuban government reported that 73 percent of hotel facilities are closed and seven international chains, including Meliá, Iberostar, and Barceló, ceased operations on the island. This contraction left 25,000 hotel workers furloughed and trapped between €80 million and €100 million in Spanish investments within the Cuban banking system. While state news agency Prensa Latina attributed the crisis to United States sanctions and pressure on foreign companies, the government simultaneously enacted private-sector reforms aimed at authorizing direct trade between private firms and foreign partners.

Consequences

The implementation of 176 legislative reforms by year-end, intended to allow private firms to trade directly with international partners, serves as the government's primary mechanism to address the sector's collapse. However, the loss of major international brands and the ongoing challenges with infrastructure, such as the reported lack of aviation fuel, present significant hurdles to reviving the tourism industry.

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