Crisis grows in Cuba: 70% of hotels close after US pressures

A severe economic crisis has deepened in Cuba as more than 70 percent of hotels have closed due to pressures from the United States, according to Prime Minister Manuel Marrero. Speaking before the National Assembly on Wednesday, he described the situation as causing “almost total paralysis” in one of the country’s key sectors. The government reported that 73 percent of hotel facilities are currently shut down, with seven international hotel chains having withdrawn from the island, managing 46 percent of the nation’s rooms. This exodus has left approximately 25,000 workers in vulnerable conditions, according to Marrero. The tourism industry, which ranks as the second-largest source of foreign currency earnings, was already under strain due to fuel shortages imposed by the U.S. in January. These restrictions led to one of the worst energy and economic crises in decades. In recent months, the administration of former President Donald Trump intensified its sanctions against Cuban officials, businesses, and institutions. The pressure escalated further in May with new penalties targeting the Cuban military conglomerate Gaesa, prompting several international hotel chains to discontinue operations in joint ventures with the group to avoid U.S. restrictions. Despite these challenges, some Spanish-based companies such as Meliá and Iberostar continued to manage hotels operated alongside the Ministry of Tourism. However, this resilience was undermined when the U.S. extended its sanctions to include the ministry itself in July. The move broadened the scope of American influence, affecting operations previously considered outside the reach of punitive measures. In February, the U.S. announced a shortage of aviation fuel for Cuba, resulting from its oil blockade. This decision triggered the suspension of flights by Canadian, Russian, and European airlines, further isolating the island economically. The Meliá Cohiba, a luxury five-star hotel located in Havana’s Vedado district, exemplifies the high-end accommodations that have been impacted by the ongoing turmoil. Official data shows that between January and June, tourism revenue plummeted by 58 percent compared to the same period in 2025. With over 300,000 people employed in the sector, nearly 3 percent of Cuba’s population of 9.4 million, the decline has had a profound effect on livelihoods. The government has yet to provide detailed plans for recovery, though some local initiatives suggest efforts to attract domestic tourists and promote alternative forms of income. President Miguel Díaz-Canel has accused the United States of attempting to seize control of the island, framing the current situation as part of a broader strategy to undermine Cuba’s sovereignty. Meanwhile, the departure of major international hotel chains has created uncertainty among remaining operators, many of whom struggle to maintain basic services without access to essential supplies. As the crisis continues, the long-term implications for Cuba’s economy remain unclear, with the government facing mounting pressure to address the growing humanitarian concerns.