The fate of Cuban tourism remains uncertain, as does the future of the nation itself.
In the face of serious challenges, the Cuban government recently announced free-market reforms that, it says, will reduce state dominance, expand property rights, and attract foreign investment.
For tourism and hospitality investors, there are two standout reforms.
First, an end to 50/50 state joint ventures, meaning foreign entities can build and fully own new tourism projects on the island.
Secondly, greater supply chain control will allow hotel groups to import goods directly, eliminating bureaucratic delays and product shortages.
The reform announcements come at a time when U.S. sanctions have put further pressure on a tourism sector that never fully recovered from the pandemic.
Tourism numbers
The Caribbean Island welcomed 4.7m tourists in 2018 compared to 1.8m in 2025.
In January 2026, the Trump U.S. administration enacted strict secondary tariffs and penalties on third parties supplying oil to Cuba.
The ensuing oil blockade led to at least 11 major airlines suspending routes to Cuba, and nationwide energy shortages that have crippled the country ever since.
In the five months to May 2026, Cuba welcomed just 359,491 international visitors, a 42 percent drop from the same period in 2025, say ONEI official statistics. Hotel occupancy stood at 13 percent from January to March 2026.
Could such a low point spell the start of positive change? According to a report in The National, Havana’s ministries have been busy recently, welcoming investors from across the world who are keen to lay the foundations for doing business in a post-sanctions Cuba.
Investor interest
During a formal presentation hosted by Cuba’s state hotel groups, officials laid out the country’s assets to a group of international tourism and hotel investors.
Cuba’s cruise terminals are now entirely empty, due to a ban enacted during U.S. president Donald Trump’s first term. Cuba has 18 international airports and 10 international marinas, mostly sitting idle, while the island’s state hotel groups - Cubanacán, Gran Caribe and Gaviota – have dozens of properties available for management contracts or investment.
Some investors are keen to make a start. Ali bin Haider, chairman of Dubai-based Abdulla Ali bin Haider Group, has reportedly signed a letter of intent with the Cuban government to build a luxury resort on Santa Maria Island.
Interest also exists at a national level; Guyana’s president has publicly encouraged his country’s private sector to explore investment opportunities in Cuba.
New airline route
And while international airlines and hotel groups, including Meliá Hotels International, Iberostar, Blue Diamond Resorts, and Archipelago International, have withdrawn or reduced their Cuban operations this year, at least one group is moving in the opposite direction.
In July, Alpitour World’s airline Neos inaugurated a new route from Rome to Holguín, in eastern Cuba, alongside its already active Rome - Havana connection.
The new weekly route, which makes a refuelling stop in the Dominican Republic, is largely in response to demand from Cubans returning to their homeland to visit friends and relatives.
Aldo Sarnataro, Neos’ commercial director, commented: “Neos has been present in Cuba for years and we continue to consider it a destination with high tourism potential. The goal today is to accompany its recovery and gradually return to develop leisure tourist flows as soon as conditions allow.”
Canadian reaction
In addition to Cubans living abroad, Canada is an important tourism source market, accounting for nearly half of all international arrivals.
Commenting on the recently announced economic reforms by the Cuban government, Gihana Galindo, director of the Cuba Tourist Board in Canada (CTBC), said: “We are excited to be part of this extraordinary chapter. These reforms mark a milestone that allows our industry to be more sustainable, autonomous, and resilient.”
Yet the pressure on Cuba still mounts. In one of the most recent consequences of U.S. sanctions, Visa and Mastercard transactions in Cuba were suspended from 6 June.
The CTBC advises visitors to Cuba to use cash and stated: “Those who have visited Cuba in the past know that the use of credit cards was mainly limited to hotels, there has never been a widespread use of credit cards outside of the hotels and it always has been mostly a cash destination.”
Maintaining the upbeat messaging, Galindo added: “Despite intensified economic pressures from the United States, Cuba remains firmly open for global tourism, with its attractions, hospitality infrastructure, and logistics fully operational.”
Travel advice
Such optimism contrasts markedly with the Canadian government’s official advice to avoid non-essential travel to Cuba due to worsening shortages of fuel, electricity, and basic necessities including food, water, and medicine.
The advice says: “These shortages can also affect services at resorts and disrupt ground transportation. Fuel availability has decreased and is difficult to predict.”
“All Canadian airlines have suspended service to Cuba until further notice. Commercial flights remain available through international airlines; however, they may become limited on short notice. You should consider leaving while options remain available.”
Uncertainty
While Cuba’s economic reforms are undoubtedly linked to the growing pressure it faces, including pressure from the Trump administration, they do not appear to be the product of negotiations between Havana and Washington, says an analysis by the non-profit Center for Engagement and Advocacy in the Americas (CEDA).
Although the U.S. has long advocated for economic and political reforms in Cuba, U.S. officials have reportedly dismissed the latest package as little more than “superficial smoke signals.”
The timeline forward for the enactment of Cuba’s reforms remains unclear, although the sale of state-owned entities to foreign investors could allow outside actors, such as the U.S., to gain significant control over key sectors of the economy, says CEDA.
Connections
Cuba is already becoming increasingly connected to the U.S. economy, with exports to Cuba surging in 2026 due to the Trump administration allowing companies to export directly to Cuba’s private sector. This trend is likely to continue in the coming months.
Despite the political tensions, family ties remain strong. Many U.S.-based Cuban Americans continue to travel to the island to visit friends and relatives. In May 2026, Cuban arrivals from the U.S. accounted for 62.2 percent of total visitors, a reminder that even amid sanctions and shortages, tourism continues.
“Cuba’s greatest assets remain our pristine beaches, vibrant culture, and the unmatched warmth of our people,” said Galindo.