Descargar informe completo en español
Download Report in English

Cuba’s tourism industry, promoted for years as the locomotive of the economy, is facing a significant collapse that reflects government mismanagement and the impact of several structural crises. Despite an investment of more than US$24 billion in the last 15 years, current results show an alarming decline in key indicators such as tourist arrivals, hotel occupancy and revenues.

Revealing figures on the collapse of tourism

  1. Tourist arrivals: Between January and October 2024, 1,718,636 visitors arrived, a drop of 48.23% compared to the same period in 2019, when 3,563,494 tourists arrived. This performance reflects a failed recovery after the pandemic and affects the main issuing markets: Canada, the U.S. and Europe.
  2. Hotel occupancy: Currently, the hotel occupancy rate is 25%, leaving a significant number of facilities underutilized.
  3. Sector revenues: In 2023, tourism revenues reached only US$1.216 billion, a drop of 61.82% compared to the US$3.185 billion obtained in 2019.
  4. Decline in key markets: Major outbound markets showed significant declines between 2019 and 2024:
    • Canada: -19.15%.
    • Cubans living abroad: -52.56%.
    • U.S.: -73.93%. USA: -73.93%.
    • Europe (average): Losses greater than 50%, with the United Kingdom (-78.55%) and France (-71.34%) standing out.

In contrast, markets such as Russia (+24.52%) and Portugal (+15.53%) recorded small growth, although insufficient to offset the declines.

Factors causing this failure

  1. GAESA’s dominance on national economic decision making: Grupo de Administración Empresarial S.A. (GAESA), with overwhelming control over finances and economic decisions, has prioritized excessive investments in tourism to the detriment of strategic sectors such as energy, transportation, and agriculture.
  2. Infrastructure in crisis: The collapsed energy matrix, constant power outages, scarcity of drinking water and urban deterioration diminish the country’s attractiveness as a tourist destination.
  3. Health security: Epidemics such as dengue and the precariousness of the health system discourage tourism. The accumulation of garbage in cities such as Havana worsens the situation.
  4. Rising crime: Inflation, extreme poverty and drug smuggling increase crime. Countries such as Canada have issued travel alerts.
  5. Significant loss of human capital: More than 10,000 skilled workers in the tourism sector have emigrated in the last three years, affecting the quality of services.
  6. Failed foreign policies: Support for Russia in its invasion of Ukraine has alienated key European markets and its alliances with international terrorist actors keep it on that short list of countries associated with that scourge. On the other hand, the promotion of the recent mass exodus and the Cuban exiles distrust of calls to invest in the island have limited the tourism potential of the diaspora, which has increasingly turned to the Dominican Republic as an alternative point for family reunions.
  7. Tour operators and airlines abandon Cuba: Tour operators and airlines abandon Cuba. Everything points to the fact that Cuba as a tourist destination is beginning to disappear from the promotional maps of international tour operators. For example, Touristik Union International (TUI), a European tourism giant that suspended its flights from Amsterdam to Varadero as of last May, and companies like Sunwing Vacation have reduced their presence due to quality problems in the facilities and conditions of the country.

Impact on the economy and conclusions

The tourism slump has led to consecutive failures to meet projected visitor goals. In 2024, it was expected to reach 3.5 million tourists, but figures indicate that the year will close with less than 2.4 million. This situation not only reflects the government’s mismanagement, but also GAESA’s failures due to its ambitions and the distortion of they introduce in economic decisions. While Cuba’s tourism industry is shutting down, other Caribbean destinations are registering sustained growth, expanding their infrastructures and improving their services.

The recovery of tourism in Cuba requires profound structural changes, including:

  • Solving the energy and health crisis.
  • Improve transportation and security.
  • Offer economic and political freedoms that will attract foreign investment and the confidence of Cuban exiles.

Without these reforms, the tourism industry will continue to decline, leaving Cuba lagging behind its regional competitors.

Descargar informe completo en español
Download Report in English