Cuba’s tourism industry has been hit hard by the energy crisis

Once celebrated as Cuba’s economic engine, tourism has now declined significantly. The latest data from the National Office of Statistics and Information (ONEI) shows a 20.5% decrease in international arrivals during 2025 compared to 2024, resulting in significant empty hotels and a tough outlook for the already struggling Cuban tourism industry.

The ONEI report, officially titled “International Traveler and Visitor Arrivals,” strongly suggests that locals and industry insiders know what they already know. Tourism, with around 84,000 hotel rooms and the involvement of 19 foreign chains – mainly investing and operating – has recently been recognized as a powerful “engine” for the Cuban economy. Although officials in Cuba’s tourism sector expressed optimism about the recovery in March, the figures paint a different picture. Total visitors dropped from 1,719,009 in 2024 to just 1,366,720 in the first ten months of 2025.

“Unfortunately, this confirms how severe the tourism crisis has become,” according to Cuban economist Pedro Monreal; His analysis highlights the broad economic consequences felt by businesses, from taxi services to souvenir shops, that rely on tourists.

Widespread declines across major source markets

The shortage is not limited to geography; This is a widespread problem in Cuba’s primary markets. Canada, traditionally a major source of tourists, saw a decline from 695,557 arrivals in 2024 to 559,715 this year. In most cases, this 19.5% decline reflects a decline in benefits due to increased travel costs and international pressures.

Similarly, visits from the US, hampered by sanctions and restrictions, fell from 110,538 to 88,849 – a 19.6% drop. Another impact on the economy is an even steeper decline in Europe and other regions: the number of Russian tourists, supported by direct flights in recent years, has fallen by 37%, and German arrivals have dropped dramatically by 43%. Spain, historically famous for its cultural ties, suffered a 27% decline.

However, not all news is bad. Latin American markets have shown growth, offering some diversification. Argentina had a slight 7% increase, Colombia showed an 11% increase, and Peru experienced an impressive 27% visitor growth. However, in reality, this increase is less than the losses in the northern markets and simply cannot compensate for the overall decline.

Energy blocking: the hidden problem

Not looking down on empty lobbies and canceled bookings are Cuba’s ongoing energy issues that will reach a critical milestone in 2025. Regular and prolonged shutdowns as well as fuel shortages have significantly disrupted daily life and business; Even the government has acknowledged the impact of disruptions in productivity. Hotels, which depend on generators such as air conditioning and lighting, are now faced with rising operating costs. These issues with transportation deter potential travelers before they even fly.

The energy crisis has implications beyond just tourism, disrupting manufacturing, agriculture as well as various services. For an economy struggling with inflation, shortages and external pressures, Cuba’s tourism sector represents a significant blow that experts fear could lead to further economic decline.

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The Economic Commission for Latin America and the Caribbean (ECLAC) also lowered expectations, estimating that Cuba’s gross domestic product (GDP) will fall by 1.5% in 2025. Additionally, a modest recovery of only 0.1% is projected for 2026; This forecast depends on stabilizing energy supplies and reducing global pressures – a challenging task given the current circumstances.

As Cuban leaders work hard to revive tourism — using tools that include incentives for investors and targeted advertising — one question that remains is: Can the island’s appeal overcome blackmail restrictions and general economic woes? For now, only time will tell. For countless potential travelers, sun-kissed beaches and vibrant, salsa-influenced nightlife remain sadly out of reach. It is becoming increasingly clear that simple hope is not enough to bring about change. A true restoration will almost certainly require a radical overhaul of the existing systems.