Cuba’s tourism sector is facing multiple challenges, from widespread blackouts to the looming political uncertainties posed by a potential second term for Donald Trump. The island’s once-thriving tourism industry, which has become the cornerstone of its economy, is now grappling with the effects of an aging energy infrastructure, frequent power outages, and a significant policy shift from the United States that could worsen its plight.
Canada, historically one of Cuba’s largest sources of tourists, has been particularly vital to the island’s tourism industry. In 2023, nearly one million Canadian travelers visited Cuba, a figure that continues to underscore the importance of Canadian visitors in filling the gap left by Americans, who remain largely deterred by the enduring U.S. economic embargo.
However, recent disruptions have cast a shadow over Cuba’s appeal. Sunwing Vacations Group, one of the island’s leading Canadian tour operators, made the decision to remove 26 hotels from its Cuba portfolio after a series of nationwide blackouts. These power cuts, the result of failures in Cuba’s outdated energy infrastructure, were exacerbated by Hurricane Rafael in November and a further breakdown of the country’s largest power plant in early December.
Samantha Taylor, Sunwing’s chief marketing officer, acknowledged the impact of the blackouts on consumer confidence. “Cuba has had some volatility in the last few weeks and that may shake consumer confidence,” she told Pax News. Although Sunwing is not pulling out of Cuba entirely, the company is now recommending alternative destinations, including the Dominican Republic, the Bahamas, and Colombia.
The consequences of this shift are significant for Cuba, where tourism has become the principal economic driver after remittances. Lessner Gómez, director of the Cuban Tourism Board in Toronto, sought to reassure potential visitors, emphasizing the government’s preparations for the winter season and efforts to improve service quality, including more car rentals and better airport experiences. However, few can deny the growing difficulties posed by Cuba’s persistent energy crisis and the broader effects of severe weather, such as increasingly frequent and intense hurricanes.
Beyond these domestic challenges, Cuba’s tourism industry is also bracing for the possibility of more punitive U.S. policies under a second Trump administration. The prospect of Trump re-election, coupled with the selection of Marco Rubio as Secretary of State, signals further tightening of the already harsh U.S. sanctions on Cuba. Rubio, a vocal critic of the Cuban government, is expected to steer U.S. policy towards greater economic pressure on the island, potentially including the suspension of commercial flights to Cuba or even the closure of the U.S. Embassy in Havana.
The Trump administration’s rollback of President Obama’s historic rapprochement with Cuba has already had a devastating effect on the island’s tourism. Under the Obama-era détente, U.S. visitors flocked to Cuba in unprecedented numbers, contributing to a tourism boom. The Cuban government responded with a rapid hotel-building campaign, confident that demand would remain strong for years to come. However, the subsequent re-imposition of U.S. travel restrictions, combined with the COVID-19 pandemic, led to a sharp decline in tourist arrivals, especially from the U.S.
Now, many of the hotels built during this boom are facing low occupancy rates, and Cuba is struggling to meet expectations of luxury service amid widespread electricity shortages. Economist Ricardo Torres from American University in Washington DC criticized Cuba’s heavy investment in tourism infrastructure at the expense of energy infrastructure. “Why has Cuba invested 38% of government funds in hotels and tourism-related infrastructure over the past decade, but only 8 to 9% on energy infrastructure?” Torres asked. “The hotels run on electricity.”
Despite these difficulties, Cuba remains an alluring destination for many travelers. Its unique cultural experiences – from classic cars and mojitos to its vibrant music scene and rich history – continue to attract visitors. However, as Sunwing’s pullback illustrates, some tourists are increasingly reluctant to travel to Cuba amidst its ongoing energy crisis and the looming threat of even harsher U.S. policies.
For Cuba’s tourism industry, the coming months will be critical. The country’s ability to navigate both its domestic energy issues and the shifting political landscape in Washington will determine whether it can continue to attract international visitors or whether its tourism sector will face further decline.
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