Cuba Claims Over 70% of Hotels Closed Due to US Sanctions

Speaking before Parliament, Marrero detailed how fuel shortages and financial pressures have devastated the country’s second-largest source of foreign currency revenue, leaving thousands of hospitality workers in vulnerable positions.

Sanctions Force Major Hotel Groups to Withdraw from Cuba

According to Prime Minister Manuel Marrero, 73 percent of all hotel establishments in Cuba are currently shuttered. The closures follow sustained pressure from Washington that prompted seven international hotel chains to pull out of the country. Before these withdrawals, these foreign groups managed 46 percent of the hotel rooms available on the island.

The sudden exit of international operators leaves roughly 25 000 hospitality employees in a situation of vulnerability, based on the initial impact assessment released by the Cuban government. Until January, the tourism sector employed more than 300 000 people in a nation of 9.4 million residents. While European brands like Spain’s Meliá and Iberostar have maintained properties managed in partnership with the Cuban Ministry of Tourism, many others severed ties to avoid American penalties.

Fuel Blockades Cripple Air Travel and Supply Chains

The hotel closures compound an ongoing energy crisis sparked by Washington’s restrictions. President Donald Trump imposed a strict blockade on fuel supplies to the island, leading to the worst economic and energy strain Cuba has experienced in decades.

Following an official February announcement regarding severe shortages of aviation fuel, major Canadian, Russian, and European commercial airlines announced the suspension of their flight routes to Cuba. The transport bottleneck cut off the influx of international travelers just as the administration rolled out broader measures targeting leaders, enterprises, and state institutions. Following sanctions implemented in May against the Cuban military conglomerate GAESA, international brands accelerated their departures to dodge Washington’s expanding trade restrictions.

Economic Shifts Toward Private Enterprise Amid Broad Pressure

As state-run tourism and traditional supply chains face tightening constraints, the Cuban government has begun opening numerous domestic sectors to private enterprise. Recent policy pivots allow private operations in areas previously restricted exclusively to the state, including service stations, pharmacies, and local ports.

Despite these internal economic adjustments, external pressures continue to mount. Washington announced new sanctions targeting the Ministry of Tourism, extending regulatory pressure into operational areas that had previously remained untouched by direct restrictions. Cuban President Miguel Díaz-Canel has accused the United States of attempting to forcefully appropriate the island’s economic infrastructure through these escalating measures.