The shocking dollar amount that the government will invest to repair an old hotel in Cuba

The Cuban government is investing millions of dollars in renovating a hotel amid a health crisis and shortages of basic resources. This tourism strategy stands in stark contrast to the deterioration of essential public services.

Hotel Jagua, CienfuegosPhoto © Web Hotel Jagua

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The Cuban government continues to prioritize the tourism sector with multimillion-dollar investments. The most recent of these initiatives is taking place at the Hotel Jagua in the city of Cienfuegos.

The iconic facility, inaugurated in 1959, is undergoing a renovation funded by the Ministry of Tourism (MINTUR) and the Spanish chain Meliá, with a total cost of 15 million dollars and 2.25 billion Cuban pesos.

Excelencia Cuba reported that in Cienfuegos, construction is progressing on the Amanecer-La Punta Complex, another joint project between Gran Caribe and Meliá. The facility will feature 19 rooms and a swimming pool. It has an additional budget of 1.8 million dollars and 108 million pesos.

The completion of that hotel installation will coincide with that of the Hotel Jagua. It is currently the most important tourism project underway in the province.

When was this investment approved?

Meliá added the Jagua to its hotel portfolio in 2024, but Cuban authorities assert that the construction began in 2023.

The investment was approved amid an unprecedented health crisis, daily blackouts, and a chronic food shortage that currently not only persists but is worsening. Despite the challenges with imported supplies, the civil engineering component of the hotel is scheduled to be completed in December of this year.

The Jagua Hotel will operate under the INNSIDE brand and will incorporate cutting-edge technology to maximize energy efficiency, including occupancy sensors in rooms, automated climate control, and a lighting system partially powered by renewable energy sources.

Both tourist developments stand in stark contrast to the situation of the country's public health system, which barely guarantees 30% of the basic medication inventory and faces severe structural deterioration, with collapsed hospitals, a lack of essential supplies, and a sustained exodus of medical personnel.

Meanwhile, millions of Cubans are enduring prolonged power outages, a shortage of drinking water, and difficulties in preserving the few available food items.

The strategy of the Cuban government remains focused on tourism as the supposed economic engine, despite the fact that the sector has failed to recover, nor reach the anticipated figures for visitors or revenue.

In practice, the hotel investment continues to grow while the indicators of poverty, precariousness, and popular discontent multiply across the country.

Frequently Asked Questions about Investing in Tourism in Cuba

How much will be invested in the renovation of the Jagua Hotel in Cienfuegos?

The renovation of the Jagua Hotel in Cienfuegos is being carried out with a budget of 15 million dollars and 2.25 billion Cuban pesos, as reported. This investment is part of the Cuban government's priorities in the tourism sector, in partnership with the Spanish chain Meliá.

Why does the Cuban government prioritize investment in tourism despite the crisis in other sectors?

The Cuban government continues to prioritize tourism as a supposed economic engine, despite the fact that the sector has not managed to recover or reach the expected visitor numbers. Meanwhile, the population is facing crises in health, education, and energy. This policy has been criticized for the evident disconnect between the regime's priorities and the urgent needs of the citizens.

What criticisms has the Cuban regime received for its approach to tourism?

The main criticism of the Cuban regime is that it prioritizes spending on the tourist industry over essential sectors such as health and education. In 2024, eleven times more was spent on tourism than on basic social services. This policy has been described as a mockery of the needs of the Cuban people, who are facing blackouts, food shortages, and a severe economic crisis.

How does investment in hotels impact the energy crisis in Cuba?

Investment in luxury hotels contrasts with the lack of resources to improve energy infrastructure. While hotels receive a constant supply of electricity, the rest of the country suffers from prolonged blackouts. This reflects a policy that prioritizes international tourism at the expense of the basic needs of the population.

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CiberCuba Editorial Team

A team of journalists committed to reporting on Cuban current affairs and topics of global interest. At CiberCuba, we work to deliver truthful news and critical analysis.