Havana, Cuba – The Cuban government has begun closing hotels and relocating international tourists as it grapples with a severe fuel shortage and a deepening energy crisis. The move, described by officials as a “consolidation” of the tourism sector, aims to reduce energy consumption during the peak tourist season, but underscores the escalating economic challenges facing the island nation.
Vice Prime Minister Óscar Pérez-Oliva Fraga announced the plan on state television , stating that “a plan has been designed in tourism to reduce energy consumption, streamline tourist facilities, and take advantage of the high season.” While Pérez-Oliva Fraga did not provide specific details regarding the number of hotels affected, industry sources confirmed to EFE that closures began and are primarily impacting properties in Varadero and the northern cays.
The affected hotels include those operated by Spanish chains Meliá and Iberostar, as well as Canadian Blue Diamond, according to reports. Tourists are being transferred to other facilities, though the logistical challenges of such a relocation during a period of fuel scarcity remain significant.
This latest development comes as Cuba’s tourism sector continues to struggle. , the country recorded its worst year for international tourism since , with just 1.8 million visitors – a dramatic decline from the 4.7 million recorded in . Hotel occupancy rates in the first half of fell by seven percentage points year-on-year, reaching 21.5%, according to official government data.
The decline in visitor numbers is attributed to a confluence of factors, including United States sanctions, the lingering effects of the COVID-19 pandemic, and the broader economic and energy limitations facing Cuba. Canada and Russia were the leading source markets in , with 754,010 and 131,882 visitors respectively, but both countries experienced significant declines – 12.4% and 29% respectively – compared to the previous year.
The current fuel shortage has prompted the Cuban government to implement a range of austerity measures, including fuel rationing, encouragement of teleworking, and blended learning models for students. These measures reflect a growing sense of crisis within the government, with President Miguel Díaz-Canel reportedly drawing inspiration from the strategies employed during the “Special Period” of the – a time of severe economic hardship following the collapse of the Soviet Union.
According to reports, some tourism workers in Varadero are now facing a work schedule of seven consecutive days followed by seven days of rest, with accommodation provided at a nearby hotel due to the lack of fuel for commuting. This arrangement highlights the strain the energy crisis is placing on the workforce and the lengths to which the government is going to maintain essential services.
The government’s efforts to sustain the tourism industry, despite the challenges, underscore its importance as a crucial source of foreign exchange. In , the regime launched a media campaign aimed at bolstering the sector’s image, portraying it as a vital economic driver and a source of stability. However, the current closures and relocations are likely to further damage the country’s reputation as a reliable tourist destination.
The situation also raises concerns about the long-term viability of Cuba’s tourism model, which relies heavily on imported fuel and goods. The combination of external sanctions and internal economic mismanagement has created a precarious situation, leaving the country vulnerable to external shocks and reliant on limited resources.
The “compaction” of the tourism sector, as described by Vice Prime Minister Pérez-Oliva Fraga, is a short-term measure intended to mitigate the immediate effects of the fuel shortage. However, analysts suggest that a more comprehensive and sustainable approach is needed to address the underlying economic challenges facing Cuba and ensure the long-term health of its tourism industry. The reliance on strategies reminiscent of the “Special Period” suggests a lack of new solutions and a deepening sense of crisis within the Cuban government.
The unfolding situation in Cuba is likely to have ripple effects throughout the Caribbean region, potentially impacting other tourism-dependent economies. The fuel shortage and economic instability could also lead to increased social unrest and political instability, further complicating the challenges facing the island nation.
