Cuban Tourism Industry Faces Historic Collapse Amid U.S. Sanctions
The Cuban tourism sector, long considered one of the island nation's few functioning economic engines, is experiencing a dramatic downward spiral as visitor numbers plummet to historic lows. According to recent reports from Cuba's national statistics institute, international travel to the Caribbean destination fell significantly in 2025, with the broader economic crisis weighing heavily on an industry that serves as a vital source of hard currency for the struggling nation.
Sharp Decline in Visitor Numbers
Official statistics reveal that approximately 1.8 million travellers visited Cuba in 2025, representing the lowest tourism numbers in more than two decades when excluding the pandemic years of 2020-2022. This figure marks an 18 percent decrease compared to 2024 visitor arrivals and a staggering 62 percent decline from the record 4.7 million visitors the island welcomed in 2018.
The dramatic drop comes as the United States implements measures to restrict fuel and financing from reaching the island, creating what experts describe as a perfect storm of external and internal pressures. Paolo Spadoni, a social sciences professor at Augusta University who specializes in Cuban studies, noted that the tourism sector is experiencing unprecedented challenges.
"The perfect storm has hit Cuba," Spadoni explained. "It's getting hit by external and internal factors that have come at the worst possible moment."
Economic Crisis Deepens Tourism Woes
Even before the latest U.S. economic measures, Cuba was already trapped in a deep recession characterized by sweeping power outages and shortages of basic goods. The government had invested heavily in new hotel infrastructure in hopes of capturing hard currency, but these facilities now sit largely empty as tourism declines.
Government statistics indicate that average hotel occupancy nationwide was running just above 20 percent, even as luxury developments like the 42-story, 594-room Torre K hotel opened in Havana. These hotels, which few locals can afford, represent a significant investment that has failed to yield expected returns amid the tourism downturn.
U.S. Fuel Restrictions Exacerbate Problems
The economic outlook for Cuba has grown increasingly dire since January 3, when U.S. special forces captured Venezuelan President Nicolás Maduro and effectively shut down critical fuel exports from Venezuela to its Caribbean ally. This development has left Cuba with limited fuel reserves, with some reports suggesting the island may have only 15 to 20 days of oil remaining.
U.S. President Donald Trump has further complicated matters by threatening to impose tariffs on other nations that attempt to provide energy assistance to Cuba. These measures have created additional barriers to economic recovery and have directly impacted the tourism industry's ability to function effectively.
Tourist Experiences Reflect Broader Crisis
The effects of the crisis are visible even within government-run beach resorts that typically operate with their own generators and preferential access to supplies. Krista Craig, a 46-year-old from the Toronto area who has been travelling to Cuba since 2018, reported dramatic changes during her December visit to a resort in Cayo Coco.
"It went from being always full to virtually empty," Craig observed, noting that a resort that typically accommodates about 350 tourists had fewer than 100 guests during her stay. She brought 38.5 kilograms of medicine, food, and goods requested by hotel staff, including muscle rubs, antibiotics, and pain killers to address mosquito-borne illnesses affecting local families.
While her resort maintained regular fumigation and didn't experience mosquito issues, staff members reported that their families were suffering from these illnesses, highlighting how the broader economic and health crises extend beyond the tourism sector itself.
Broader Implications for Cuban Economy
The collapse of tourism represents a significant blow to Cuba's already fragile economy. As one of the few reliable sources of hard currency, the decline in visitor numbers compounds existing economic challenges and limits the government's ability to address basic needs and infrastructure requirements.
The combination of U.S. sanctions, internal economic mismanagement, and global economic pressures has created a complex crisis with no immediate resolution in sight. As Cuba struggles to maintain basic services and address shortages, the tourism industry's decline serves as both a symptom and a cause of broader economic distress.
