Cuba Shuts 73% of Hotels Following U.S. Sanctions

Cuban Prime Minister Manuel Marrero Cruz announced that 73% of the nation's hotel facilities are closed, leaving roughly 25,000 workers without full employment. The tourism sector has reached a state of almost total paralysis, with international visitor numbers dropping 58% between January and May 2026 compared to the previous year. The crisis is driven by acute fuel shortages and the impact of U.S. sanctions.

Seven international hotel chains, which represent 46% of the island's rooms, have exited Cuba. This exodus includes Meliá Hotels International, which closed 34 properties on July 21, and the Iberostar Group, which ceased operations at 12 of its 18 hotels on June 1. The departures followed Executive Order 14404, signed by President Donald Trump on May 1, 2026, and the U.S. State Department's May 7 designation of the military conglomerate GAESA. These actions threatened foreign companies with exclusion from the U.S. financial system if they continued business with GAESA.

In response to the systemic collapse, the Cuban government has approved 10 of 13 planned tourism transformations. These measures include the authorization of private travel agencies and vehicle rentals, as well as tax incentives for ecotourism.