Cuba’s tourism industry, once hailed as the economic driving force of the country, is facing a severe downturn following a peak in 2018. The U.S. government’s restrictions on Cuba’s oil supply have exacerbated the situation, leading to a crisis in the vital sector.
Due to threats of tariffs on countries supplying fuel to Cuba, Canadian, Russian, and European airlines have suspended flights, and resorts have closed their doors, resulting in a sharp decline in international visitors. In 2024, Cuba saw a significant drop in tourist arrivals, with only 2.2 million visitors compared to 4.7 million in 2018.
Experts warn that Cuba is now grappling with its worst economic crisis since the aftermath of the 1962 Missile Crisis. The potential collapse of the tourism industry could spell disaster for the country’s economy, according to John Kirk, a Latin American studies professor at Dalhousie University.
The evolution of Cuba’s tourism sector dates back to the post-1959 revolution era when the industry was revitalized following the Soviet Union’s collapse in the 1980s. The sector saw a surge in American visitors after the normalization of relations during Barack Obama’s presidency, with tourism contributing significantly to Cuba’s GDP.
However, subsequent restrictions on travel to Cuba and external factors like the COVID-19 pandemic and the Ukraine conflict have hampered the industry’s growth. The current state of Cuba’s economy, exacerbated by government mismanagement and the heavy reliance on tourism, has left the country vulnerable.
With tourism serving as a crucial source of revenue for Cuba, the sector’s decline has far-reaching implications for the country’s financial stability. The disparity in earning currencies between those in the tourism sector and others highlights the economic divide within the country.
The challenges faced by other strategic sectors in Cuba, coupled with the exodus of tourism workers, paint a grim picture of the country’s economic landscape. As frustrations mount among the population, the future of Cuba’s economy remains uncertain, with the repercussions of the tourism industry’s decline reverberating across various sectors.
