Cuba Announces Sweeping Reforms to Open Tourism, Foreign Trade Amid Economic Crisis

Cuban President Miguel Díaz-Canel announced a significant package of economic reforms on June 12, 2026, targeting tourism, foreign trade, and foreign investment. These measures aim to liberalize and streamline the national economy, which is grappling with a severe crisis.

Díaz-Canel justified the reforms by citing the island's internal situation and economic pressure from the United States, though he did not link them to negotiations with Washington. He emphasized the need to adapt to "the demands of the current times" and to make the economy more dynamic. A key aspect of the reforms is the decentralization of state-owned enterprises, provinces, and municipalities, granting them greater autonomy. The president stated, "These are times when we must change, and the country cannot continue functioning the same way."

A major focus of the reforms is the tourism sector, which will open to "new modalities" and "new actors." This move follows the withdrawal of foreign companies like Meliá and Iberostar, leaving hotel facilities vacant. The Cuban state, which manages over 84,000 hotel rooms, seeks to reform their management.

In foreign trade, state import companies that act as intermediaries will be eliminated to make the sector more dynamic. Restrictions on vehicle imports will also be lifted. The agricultural sector will see changes allowing producers to buy inputs directly, form associations, and participate in the currency market. The government also aims to incentivize direct foreign investment, including from Cubans living abroad, offering them conditions similar to those for nationals.

Cuba faces a deep structural crisis, with its economy contracting by over 15% between 2020 and 2025. U.S. pressure, including oil blockades and secondary sanctions, has intensified this precarious situation. The reforms signal a significant shift in Cuba's economic strategy as it seeks to revitalize its struggling economy.