US sanctions cripple Cuba’s tourism, hotels sit empty | Ukraine news
A sharp fall in arrivals has left Havana’s historic districts near-deserted and many new hotels unoccupied, deepening uncertainty for workers.
Havana, Cuba – the country’s tourism sector once had everything it needed for attractive travel: pristine sandy beaches, fortifications, and well-preserved façades from the colonial era. Today these advantages hardly attract visitors.
The island’s economy fell into a vicious circle after a wave of sanctions by the Donald Trump administration against the Cuban government. Due to service disruptions and rising shortages of foreign goods, foreign visitors declined, along with tourism revenue.
Former tourist heartlands of the country now look like ghosts: among them Old Havana, founded in the 16th century and recognized as one of the best-preserved examples of Spanish colonial architecture in the Americas.
There are no tourists.
– Elio
Maybe they are at home. One visitor shows up only every half an hour or an hour.
– Elio
According to Cuban authorities, in the first five months of 2026 the island welcomed about 360,000 tourists – 58% fewer than in the same period of the previous year.
Compared with Cuba, neighboring Dominican Republic recorded more than tenfold growth in tourist flows over the same period.
Key factors of the crisis
The situation is being aggravated by U.S. actions: in January the Trump administration carried out a military strike on Venezuela – Cuba’s former ally – which interrupted an important oil supply to the island.
Soon after, Washington imposed an oil blockade that further weakened the economy and forced many airlines to cancel flights due to the lack of refueling in Cuba.
A new round of sanctions targets foreign companies that cooperate with the Cuban army – which controls significant portions of the tourism sector – forcing many international chains to leave the island.
According to the U.S. administration, the economic squeeze is intended to push the Cuban government to open up the political system and allow direct foreign investments, including in tourism.
In June, in an Axios interview, Trump compared Cuba’s tourism potential with Venezuela’s oil, considering further steps to secure concessions, including possible military action.
Venezuela has oil. Cuba does not. Cuba has good real estate and a beautiful coastline.
– Trump
After the pandemic, the tourism sector faced new problems and has not been able to fully restore its performance.
The tightening of sanctions by the United States complicates the situation: they deter visitors or push them to choose other destinations.
Tour operators, including the British Cubania Travel, were forced to suspend all trips for an indefinite period.
Who would want to travel to a country that has fallen into such a state? People are willing to endure some discomfort during their vacation, but this already turns travel into conscious “dark tourism”.
– Lucy Davies
Davies adds that the company is seeking ways to support former clients and people who care about the fate of Cubans, using part of the funds for food donations and support for local staff who previously worked with tourists.
I have heard that people are finding it hard to find food. We won’t be able to help everyone. It will be a drop in the ocean, but it’s what we can do.
– Lucy Davies
Pressure from the United States continues to influence the sector’s recovery: the government is building new hotels, but many of them are now empty and not filled with guests.
In June, President Miguel Díaz-Canel stated that Cubans inside the country and abroad could take on the management of hotels as part of a new wave of reforms aimed at supporting the country’s economy.
“We are open to Cubans who want to invest in and run hotels,” Díaz-Canel said. “We have also offered these business opportunities to Cubans living abroad.”
Under current law, the government will retain full ownership of the hotels.
Economist Pedro Monreal, who works with CNN, expressed doubt about whether Cuba’s private sector could take on the management of the state hotel network – such a move requires substantial capital, robust supply-chain links, and specialized knowledge that the Cuban private sector does not yet possess.
“It is unrealistic to expect that Cubans – whether those in the diaspora or those who stayed on the island – will be able to replace the hotel networks; such a move requires scale of capital, stable supply-chain links, and a certain level of knowledge that the Cuban private sector does not have”
– Pedro Monreal
According to the expert, the state has significantly reinvested in the hotel sector, spending substantial funds on tourist infrastructure instead of health care, education, or agriculture; this focus on tourism combined with U.S. sanctions is driving a financial crisis.
Despite the crisis, the government continues to build hotels, but many of the constructed buildings are now empty, a stark symbol of the sector’s decay that was previously seen as the key to the country’s economic future.
Changes in the industry continue, but the outlook remains uncertain: the future of Cuban tourism depends on policy, international decisions, and how open investment doors can be to support local business.
Conclusion
In Cuba, the tourism sector is undergoing a difficult period due to a combination of sanctions, global economic trends, and domestic decisions. The recovery of visitor flows and the restoration of the country’s economic stability depend on the steps taken by the government and its international partners.