Cuba faces tourism collapse and severe economic shortages

Cuba is facing a severe economic and tourism crisis characterized by massive hotel closures and extreme shortages. According to Prime Minister Manuel Marrero, 73 percent of the country's hotel facilities are currently closed following the departure of seven international chains. This exodus has left approximately 25,000 workers vulnerable and contributed to a 58 percent year-on-year drop in tourist arrivals between January and June 2026.

Amidst these macro-level shifts, small-scale entrepreneurs are struggling to survive. Business owners, such as restaurant operator Dainel Castillo, report navigating rampant inflation, frequent power outages, and acute shortages of essential supplies like cooking oil. The tightening of U.S. sanctions has further exacerbated difficulties regarding fuel and electricity access. While the Ministry of Tourism maintains that the destination continues to operate under national brands, the local economy remains under heavy strain from high costs and supply chain disruptions.