Cuba’s tourism sector recorded just over 1.8 million international visitors in 2025, a 17.8% drop from 2024 and less than half the pre-pandemic total of more than 4.2 million visitors in 2019, according to Cuba’s National Office of Statistics and Information (ONEI). The Cuban government had set an official target of 3 million visitors for 2025, which was not met.
Tourism, a key source of foreign exchange for Cuba for over three decades, now grapples with multiple intertwined challenges including a prolonged economic crisis, deteriorating energy infrastructure, demographic shifts, emigration of working-age residents, and ongoing geopolitical complexities related to the
U.S. embargo.
Recent Visitor Trends and Market Declines
In the first five months of 2026, international tourist arrivals dropped 58.4% year-over-year to 359,491, reinforcing the downward trajectory. Major source markets experienced significant reductions in 2025: Canada sent 754,000 visitors, down 12.4%; Russia’s arrivals fell 29% to 131,882; and U.S. tourists decreased 22.8% to 110,005. Visits by Cubans living abroad also declined by 22.6% that year, further affecting overall inbound traffic.
Hotel Occupancy and Operational Challenges
Hotel occupancy rates plummeted to 18.9% in 2025, representing an 18% drop compared to 2024. This decline accelerated in early 2026, with occupancy falling from 23.7% to 12.9% between the first and third months of the
year. Fuel shortages, a consequence of the U.S. oil embargo, forced the Cuban government to shut down several hotels. Notably, the Spanish hotel chain Meliá suspended operations on the island, citing difficulties exacerbated by these shortages.
Impact of U.S. Sanctions and Geopolitical Environment
The sustained effects of the U.S. embargo and related sanctions have hampered fuel availability and overall infrastructure reliability, negatively impacting the tourist experience through frequent blackouts and reduced public services. While the decline in tourism preceded the 2026 sanctions, these geopolitical factors continue to suppress recovery prospects. Previously, during former U.S. President Barack Obama’s second term, relaxed travel restrictions saw American tourist numbers rise
from 282,552 in 2016 to 638,365 in 2018, temporarily bolstering arrivals from the U.S. and positioning it as Cuba’s second-largest tourism source market.
Recovery Scenarios and Sector Outlook
Prospects for rebound hinge on easing U.S.-Cuba tensions, comprehensive macroeconomic reforms, and restoring a reliable national energy system. Without progress on these fronts, international arrivals could remain below 1 million annually. Partial reforms and improved diplomatic relations might lift visitor numbers to between 1 million and 3 million each year. An optimistic recovery depends on broad structural reforms, investment in infrastructure, modernization of institutions, strengthened private sector participation, and digitalization; under such conditions, Cuba could surpass 5
million annual visitors.
The role of micro, small, and medium-sized enterprises (MSMEs) is increasingly recognized as a means to diversify and enrich tourism offerings. Private restaurants, family-run accommodations, and cultural enterprises can complement state services to improve quality and innovation. Recent state investments have focused on building new hotels despite low occupancy, but recovery will require shifting resources toward refurbishing aging hotels and attracting foreign investment for effective management.
Modernizing Cuba’s tourism infrastructure to meet international standards will also depend on digital transformation, including electronic payments, connectivity, artificial intelligence, and data analytics. Such upgrades are needed to remain competitive and
satisfy global tourists’ expectations.
Cuba’s long-term tourism sustainability requires a unified approach addressing macroeconomic stability, institutional modernization, infrastructure renovation, private sector growth, and sustainable, innovative tourism products. The sector’s revival depends significantly on resolving geopolitical constraints and strengthening domestic capacities.
