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Cuba Sees 64% Drop in Tourist Arrivals and 10% GDP Decline in 2026

Cuba Tourism Slumps 64%, GDP Down 10%
Image: The Cuban Economy: What’s Next for the Private Sector? by InterAmericanDialogue via flickr, by

Cuba registered a 64.4% decrease in international tourist arrivals from January to August 2026, receiving 450,353 visitors compared to over 1.26 million during the same period in 2025. Key source markets experienced steep declines: Canadian visitors dropped 75.6% to 128,400, Russian arrivals fell 73.3% to 21,563, and Spanish tourists decreased 68.2% to 10,447. August 2026 arrivals totaled 30,490, slightly lower than July’s 32,272, according to data from the National Office of Statistics and Information (ONEI).

Economic growth outlook reflects tourism collapse

The Economic Commission for Latin America and the Caribbean (ECLAC) forecasts Cuba’s Gross Domestic Product (GDP) will shrink by 10.3% in 2026, following a 3.8%

contraction in 2025. The agency also projects a further 5.1% economic decline in 2027. These declines are the steepest among Latin American and Caribbean nations and reflect the critical impact of the tourism sector downturn on Cuba’s economy.

Departure of Spanish hotel chains intensifies crisis

The tourism collapse intensified after major Spanish hotel chains ceased their operations in Cuba during 2026. Meliá terminated management and marketing services at its 34 Cuban hotels on July 24, citing operational, legal, economic, and financial difficulties. Iberostar withdrew from 18 hotels in two phases by mid-year, initially abandoning 12 before divesting the remaining six. Barceló stopped operating two hotels in Varadero.

While these withdrawals ended foreign management, property ownership often remains with Cuban state enterprises such as Gaviota, a GAESA-related tourism company linked to the Cuban Armed Forces.

Supply disruptions and sanctions worsen tourism decline

Cuba’s tourism downturn has been aggravated by fuel shortages, supply chain disruptions, flight cancellations, and expanded U.S. sanctions targeting state and military tourism entities. Power outages and diminished demand had already weakened the sector prior to these factors. The resulting collapse in tourism bookings and airline connectivity has cut vital foreign currency inflows to the island.

Hotel closures and workforce impact escalate

As of July 2026, Cuban Prime Minister Manuel Marrero reported that approximately 73% of hotel facilities were

closed, placing about 25,000 workers in availability status. The high closure rate has severely limited accommodation options and basic services for travelers, escalating challenges in Cuba’s tourism infrastructure amid ongoing operational difficulties.

Cuba attracted more than four million international visitors annually before the COVID-19 pandemic, with tourism serving as a key source of foreign currency. The withdrawal of international hotel operators, especially Spanish chains, and the compounded effects of sanctions, fuel and supply shortages, and canceled flights have disrupted this critical sector. Tourism properties managed by foreign companies often involved contractual management and marketing agreements, while many hotel assets remain

under Cuban state ownership, particularly entities connected to GAESA.