Cuba Shuts 73% of Hotels as Tourism Collapses Under Sanctions

Cuba has closed nearly three-quarters of its hotels, Prime Minister Manuel Marrero confirmed on Wednesday, as the island's tourism sector reaches what he called "almost total paralysis" under the weight of US sanctions and a deepening fuel shortage.

AI-generated Axo News staff avatar for Elena Petrov
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The disclosure marks the first time Havana has publicly quantified the scale of the Cuba tourism crisis. Some 73 per cent of hotels are now shuttered, and seven international hotel chains — responsible for roughly half of all hotel rooms on the island — have pulled out entirely.

Hotel Chains Exit and Workers Left Stranded

The departure of the seven chains removes a major pillar of Cuba’s hospitality infrastructure. Before the crisis deepened this year, tourism ranked as the country’s second-largest source of foreign currency earnings and employed more than 300,000 people across hotels, restaurants, transport, and related services.

Marrero said about 25,000 workers have been left “in a vulnerable situation” as properties go dark. Old Havana, once dense with visitors chasing sun, salsa, and rum cocktails, has gone quiet — a visible signal of how quickly the Cuba hotels closure has rippled through the local economy.

Fuel Shortage Triggered the Airline Pullout

The collapse accelerated after Havana announced an aviation fuel shortage in February. Canadian, Russian, and European airlines responded by suspending flights to the island, cutting off the primary channels that delivered leisure travelers to Cuban resorts.

Without reliable jet fuel supplies, carriers could not guarantee return legs, and route suspensions followed within weeks. The loss of those air links compounded the pressure already building from tightened US sanctions, which have restricted financial flows and discouraged foreign investment in Cuban tourism ventures.

What Happens Next

The Cuba tourism crisis is unlikely to ease quickly. Restoring airline confidence requires a stable aviation fuel supply, and Havana has not outlined a timeline for resolving the shortage. Sanctions, meanwhile, remain a structural barrier to new hotel investment or the return of the international chains that exited.

Travelers who had booked Cuban itineraries should expect continued cancellations and limited accommodation options, with only a fraction of hotels still operating. Regional competitors — the Dominican Republic, Mexico’s Caribbean coast, and Jamaica — are positioned to absorb displaced demand. Watch for whether Havana secures fuel deals with Venezuela or other partners, and whether any European carriers resume limited service before the winter high season.

— Elena Petrov, travel desk, AXO News

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