Cuba Says Three Quarters of Hotels Shuttered

Cuba's vital tourism industry is facing an unprecedented crisis, with Prime Minister Manuel Marrero reporting that approximately 73% of the island's hotels have been shuttered. This near-complete shutdown has brought the sector to a state of "almost total paralysis," severely impacting the nation's economy.

Marrero detailed the scale of the downturn, noting that seven international hotel chains, managing about half of the island's hotel rooms, have ceased operations in Cuba. Tourism, once the island's second-largest source of foreign currency and an employer of over 300,000 people, has been decimated. The crisis has left an estimated 25,000 workers in a "vulnerable situation."

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seven international chains, responsible for about half of all hotel rooms, had left the island.

The downturn is attributed to a combination of factors, primarily US sanctions and persistent fuel shortages. Washington's sanctions in May targeted the military-run conglomerate GAESA, prompting several international operators to terminate management agreements to avoid penalties. The US further widened sanctions in July. Compounding these issues, an aviation fuel shortage announced in February led to the suspension of flights by Canadian, Russian, and European airlines. Official figures reveal a stark 58% drop in tourist arrivals between January and June compared to the previous year, leaving streets once bustling with visitors now quiet.

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73 percent of hotels have been closed, and about 25,000 workers have been left 'in a vulnerable situation.'