Cuba's Tourism Industry Collapses as Sanctions and Economic Crisis Drive Away Foreign Visitors
Cuba's tourism sector has experienced a dramatic decline, with international visitor arrivals in early 2025 falling to less than half the previous year's already depressed levels, as major hotel chains, airlines, and payment processors withdraw from the island. The collapse stems from a combination of Cuba's economic crisis, fuel shortages, power blackouts, U.S. sanctions, threats of military action, and foreign companies' fears of U.S. penalties for doing business with sanctioned entities. The tourism industry's failure to recover from COVID-19 and its current deterioration threatens the livelihoods of small business owners and represents a significant loss of hard currency for Cuba's struggling economy.
Cuba's tourism industry has entered a severe crisis, with international visitor numbers in the first months of 2025 dropping to 328,608—less than half the figure from the same period in 2024 and far below pre-pandemic peaks of 4.75 million annual visitors in 2018. The collapse has been triggered by multiple converging factors: Cuba's ongoing economic crisis, chronic fuel shortages, frequent power blackouts, and escalating U.S. pressure including fresh sanctions and hints of possible military action. Major international tourism operators have withdrawn or significantly reduced operations, including Spain's Melia and Iberostar hotel chains, Canadian hotel firm Blue Diamond, multiple airlines (Iberia, World2Fly, Rossiya, WestJet, Air Canada), and payment processors Visa and Mastercard. Foreign companies cite both unreliable supplies and fear of U.S. penalties for conducting business with sanctioned Cuban entities. While some resilient tourists from Latin America continue to visit and praise Cuban culture and hospitality, small privately owned businesses like cafes and hostels report severe hardship, with many forced to close or implement steep discounts to survive.
What different sources said
- The Straits TimesCenter
At Cuba's once bustling tourist sites, foreign visitors are increasingly scarce
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