Cuba’s tourism sector has long been considered a vital pillar of its economy, often referred to as an “economic locomotive.” However, the industry has been facing challenges since its peak in 2018, exacerbated by the U.S. government’s actions impacting Cuba’s oil supply.
The Trump administration’s threats to impose tariffs on countries supplying fuel to Cuba, following the fall of its main energy supplier Venezuela, have led to disruptions in the tourism sector. Canadian, Russian, and European airlines have suspended flights, and resorts have closed, resulting in a significant decline in international visitors. In 2024, the country saw a sharp drop in tourist numbers from 2018.
Experts warn that Cuba is now in its most severe economic crisis since the aftermath of the 1962 Missile Crisis. The collapse of the tourism industry could have devastating consequences for the economy, as tourism has been a major source of revenue and liquidity for the country.
Historically, Cuba’s tourism industry was revived after the Soviet Union’s collapse in the 1980s, attracting visitors from various countries. The sector was later centralized under a military-run conglomerate, contributing significantly to Cuba’s GDP.
During Obama’s presidency, tourism flourished, accounting for a substantial portion of the country’s GDP. However, subsequent restrictions on travel to Cuba and global disruptions like the COVID-19 pandemic and the war in Ukraine have hampered the industry’s growth.
Cuban economist Ricardo Torres highlights the country’s economic challenges and frustrations with the government’s handling of the tourism sector. The reliance on tourism revenue has created a divide in the economy, with those in the industry earning foreign currencies while others struggle with devalued local currency.
The current situation in Cuba, marked by power outages, economic hardships, and social unrest, underscores the critical role tourism plays in sustaining the economy. With the industry on the brink of collapse, the country faces an uncertain future with significant economic repercussions.
