Tourism is sinking in Cuba: Hotels are lowering prices and offering free services due to a lack of tourists



Hotel Sol Cayo Santa MaríaPhoto © tripadvisor.es

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Hotel chains operating in Cuba have resorted to historic price cuts and free services to attract the few tourists still visiting the island, marking another sign of the unprecedented collapse facing the sector.

According to information published by the specialized outlet Reportur, occupancy levels are at historic lows in both Varadero and Havana, prompting hotel companies to implement what the sector refers to as "aggressive offers" to prevent further losses.

The discounts reach 25% or more during certain seasons and apply to both early bookings and last-minute deals, particularly in Varadero, where the competition among the few open establishments is greater.

All-inclusive packages in areas like Cayo Coco and Cayo Santa María offer complete stays with food, drinks, and activities at lower rates than in previous years, with the sole aim of maintaining a minimum occupancy.

In addition to the reduced prices, several hotels are offering additional incentives, such as "free transfers to and from the airport, complimentary room upgrades, and vouchers for on-site consumption."

In Havana, urban hotels combine low prices with additional services to attract both tourists and business travelers, "adapting to a more limited and changing market."

The background of these strategies is a historic decline in hotel occupancy in Cuba, which ended 2025 at just 18.9%, the worst rate recorded in decades, with only 1.81 million international visitors, the lowest number since 2002.

In 2026, the situation deteriorated dramatically. The first quarter recorded just 298,057 tourists, a 48% decrease compared to the same period in 2025, while March plummeted to 35,561 visitors, with symbolic figures such as only 249 Russian tourists and 511 Canadians throughout the month.

The energy crisis was the immediate trigger. The fuel shortage led to the cancellation of more than 1,700 flights and the suspension of operations for at least 11 airlines, including Air Canada, Air Transat, WestJet, Iberia, Air France, and Turkish Airlines.

In response to the collapse, the regime implemented a "tourism compaction" strategy starting in February, closing low-occupancy hotels and concentrating the remaining tourists in selected facilities to save energy.

The military conglomerate Gaviota closed 20 hotels in Cayo Santa María, leaving over 7,000 workers unemployed overnight.

The state agency Havanatur published in March the list of hotels open in Havana and Varadero, with only 13 establishments between the two destinations.

In Havana, the Gran Muthu Habana, Deauville, Mystique Habana, Iberostar Selection Parque Central, Nacional de Cuba, Meliá Habana, and Meliá Cohíba are in operation, among others. Meanwhile, in Varadero, the Club Tropical, Barceló Solymar, Meliá Varadero, Meliá Internacional, Iberostar Selection Varadero, and Paradisus Varadero remain active.

Despite the reduced rates and free services, the country's structural problems, including power outages of up to 20 hours, food shortages, and the deterioration of infrastructure, continue to severely limit the quality of the tourist experience for those who choose to travel to the island.

Cuban tourism has fallen by 62% since 2018, when the island welcomed 4.7 million international visitors, and the hotel occupancy rate in 2026 is only at 21.5%, leaving more than eight out of every ten rooms unoccupied.

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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.