Cuba recorded a 64.4% decrease in international tourist arrivals from January to August 2026 compared to the same period in 2025, welcoming 450,353 visitors versus over 1.26 million the previous year, according to the National Office of Statistics and Information (ONEI). The Economic Commission for Latin America and the Caribbean (ECLAC) projects Cuba’s Gross Domestic Product (GDP) will shrink 10.3% in 2026 after a 3.8% contraction in 2025, with a further 5.1% decline forecasted in 2027.
Spanish Hotel Chains Withdraw
Spanish hotel groups Meliá, Iberostar, and Barceló ceased operations in Cuba during 2026, intensifying the tourism downturn. Meliá ended management and marketing of its
34 Cuban hotels effective July 24, citing operational, legal, economic, and financial challenges in a statement to Spain’s National Securities Market Commission. Iberostar first abandoned 12 hotels, then the remaining six under its management, totaling 18 hotels. Barceló stopped managing two hotels located in Varadero. While many properties remain Cuban state-owned, the withdrawal of these international operators has reduced management and marketing capacity in the sector.
Visitor Declines and Market Impacts
Monthly tourist arrivals fell from 32,272 in July 2026 to 30,490 in August. Key markets witnessed sharp visitor reductions: Canada’s arrivals dropped 75.6% to 128,400, Russia’s declined 73.3% to 21,563, and Spain’s decreased 68.2%
to 10,447 year-on-year. These declines reflect diminished air connectivity and reduced travel demand following international operators’ exits and ongoing operational challenges.
Operational Challenges and Causes
Fuel shortages, supply chain disruptions, flight cancellations, and U.S. sanctions on Cuban entities linked to the state and military tourism sectors have contributed to the crisis. These factors compounded pre-existing issues including power outages, service deterioration, and low visitor demand. The sanctioned entities include tourism businesses integrated into GAESA, a conglomerate linked to the Cuban Armed Forces, with Gaviota as a key tourism entity within this structure.
Hotel Closures and Workforce Impact
As of July 2026, 73% of Cuban hotel facilities were closed, affecting
approximately 25,000 tourism workers who were placed in a state of availability, a form of partial unemployment. These closures and workforce reductions reflect the steep decline in tourism activity and accompanying operational difficulties.
Official Statements and Economic Context
Meliá formally announced its exit from Cuba was effective July 24, 2026, attributing the decision to operational and financial setbacks. The Cuban tourism infrastructure faces critical challenges amid ongoing deficits in electricity, food supply, and transportation. Despite plans to expand hotel infrastructure, Cuba’s tourism sector continues to contract, receiving 1.8 million visitors in 2025—less than half the more than four million annual visitors before the COVID-19 pandemic.
The combined tourism and economic downturn has resulted in one of the steepest GDP declines forecasted in Latin America and the Caribbean in 2026.
