Cuba's tourism slump drives hotel closures and job losses

Cuba’s tourism sector has collapsed, with international arrivals down roughly 58% between January and May and overall visitor numbers falling about 50% in the first four months of 2026. Revenue from tourism has plunged 70% since 2019, prompting many hotels in Varadero and elsewhere to operate at single‑digit occupancy and some to close temporarily due to fuel shortages.

Foreign hotel operators including Spain’s Meliá and Iberostar, Canada’s Blue Diamond and Indonesia’s Archipielago International have withdrawn or reduced their presence, affecting up to a third of the nation’s hotel inventory and nearly half of the rooms managed by foreign firms. An estimated 20,000‑30,000 tourism workers are directly impacted, many of whom rely on tips and informal income that have vanished with the drop in visitors.

Complaints from tourists have underscored the crisis, such as a viral video showing long queues, food shortages and high prices at a five‑star Varadero resort despite services that fall far short of expectations. The combination of U.S. pressure, fuel shortages and a broader economic downturn has turned Cuba’s once‑thriving tourism industry into a source of widespread hardship for hotel staff, ancillary service providers and local families.