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Amid numerous complaints about the deterioration of the tourism infrastructure in Cuba, the Canadian chain Sunwing Vacations has launched new luxury accommodations on the island, including the country's first overwater bungalows, located in Cayo Guillermo, and an expansion of its family resort in Holguín.
The news, disseminated by the specialized portal Travel Press, comes just a few months after Sunwing itself removed 26 Cuban hotels from its catalog, citing issues with quality, lack of transparency in services, and ongoing complaints from tourists.
Among the reasons for that drastic measure, executives from Sunwing mentioned power outages, infrastructure deterioration, food shortages, and a growing distrust from customers. Even the Canadian government advises against traveling to Cuba due to deficiencies in medical services, the energy crisis, and insecurity.
Despite this context, Sunwing is now betting on luxury in tourist destinations managed in partnership with the military holding Grupo de Administración Empresarial S.A. (GAESA), which controls over 70% of the dollarized Cuban economy, and far removed from the daily reality of millions of Cubans who face daily blackouts, shortages of basic goods, and a collapsed healthcare system.
One of the new projects is the Playa Luxury Cayo Guillermo, which offers beachfront villas with a welcome sparkling wine, sauna, yoga classes, exclusive access to bars, and personalized services. Additionally, there is the Playa Pesquero Resort Suites and Spa in Holguín, a family-oriented option with cultural activities and all-inclusive packages.
However, the efforts to offer "paradisiacal getaways" contrast with recent complaints from Canadian tourists regarding sexual assaults within Cuban hotels, negligent responses from the establishments, and the lack of legal guarantees in serious incidents. Two shocking cases, one in Varadero and the other in Cayo Coco, have raised alarms in Canada and revived the debate on tourist safety in Cuba.
While this new luxury strategy unfolds, the Cuban tourism model faces its greatest discredit in years, with occupancy rates falling below expectations. According to official data from the National Office of Statistics and Information (ONEI), the hotel occupancy rate dropped to a mere 24.1% in the first quarter of 2025, and the number of tourists decreased by 29.3% year-on-year. Revenue from tourism also plummeted by 21.5%.
Cuba still appears in agency catalogs as an accessible Caribbean paradise, but more and more travelers and observers are questioning the true human and moral cost of maintaining that illusion.
Frequently Asked Questions about Luxury Tourism in Cuba and the Current Situation
What is Playa Luxury Cayo Guillermo and what does it offer?
The Playa Luxury Cayo Guillermo is a luxury resort in Cuba that offers over-the-sea villas, welcome sparkling wine, sauna, yoga classes, and exclusive access to bars and personalized services. It is located in Cayo Guillermo and is part of a new venture in luxury tourism in Cuba, managed in collaboration with the Business Administration Group S.A. (GAESA).
Why did Sunwing remove some Cuban hotels from its catalog?
Sunwing removed 26 Cuban hotels from its catalog due to quality issues, lack of transparency in services, and frequent complaints from tourists. Among the mentioned reasons are power outages, deterioration of infrastructure, and food shortages.
How is tourism currently in Cuba?
Tourism in Cuba is in a critical situation, with a significant drop in hotel occupancy and the number of tourists. In the first quarter of 2025, the hotel occupancy rate was only 24.1%, and the number of tourists decreased by 29.3% year on year.
How does the Cuban economic crisis impact tourism?
The economic crisis in Cuba has severely affected tourism, with issues such as power outages, deterioration of facilities, and shortages of basic products. Although the government prioritizes the development of luxury tourism, these structural problems have generated distrust among tourists and a decline in visits.
What criticisms does the current Cuban tourism model face?
The current Cuban tourism model faces criticism for prioritizing luxury tourism at the expense of the basic needs of the population. Despite the economic crisis, the government continues to invest in new tourism projects, while many Cubans are dealing with power outages, a lack of basic products, and collapsed health services.
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