Cuba’s Hotel Occupancy Drops 7 Points to 21.5% in the First Half of 2025

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Cuba’s hotel occupancy rate falls to 21.5% in the first half of 2025 as foreign arrivals drop 25% amid economic crisis and U.S. sanctions.

A Weak Start for Cuba’s Tourism Sector

Cuba’s tourism industry, long considered a cornerstone of its economy, continues to struggle. According to the National Office of Statistics and Information (ONEI), the island’s hotel occupancy rate fell nearly seven points, reaching just 21.5% in the first half of 2025.

Decline in Tourist Arrivals and Stays

The data confirms a significant drop in foreign visitors. From January to June 2025, 981,856 international travelers visited Cuba — 25% fewer than during the same period in 2024. Not only did arrivals decline, but those who traveled to the island also stayed for shorter periods.

  • Overnight stays plunged 27.8%, totaling 5,534,676 nights.
  • Average length of stay fell from 6.1 nights in early 2024 to 5.8 nights in the first half of 2025.

Revenue Impact

Despite fewer tourists, Cuba’s tourism revenues reached 56.2 billion pesos, about 20.6% less than a year earlier. Much of this income is collected in foreign currency, but ONEI’s report did not clarify the exchange rate used for conversion — a notable omission given the gap between the official rate (24 pesos per U.S. dollar) and the soaring informal market rate (above 400 pesos per U.S. dollar).

Tourism in Decline

The downturn highlights broader challenges facing Cuba’s tourism-dependent economy — including a severe economic and energy crisis, a wave of reduced air connections, and the impact of ongoing U.S. sanctions.

Tourism traditionally provides Cuba with much-needed foreign currency, alongside professional services and remittances, making its decline a major risk for the government’s economic plans.

From Growth to Stagnation

Official figures show a troubling trajectory:

  • 2022: 1.6 million international visitors
  • 2023: 2.4 million visitors
  • 2024: 2.2 million visitors

By comparison, during its tourism peak in 2018 (4.6 million visitors) and 2019 (4.2 million visitors), Cuba benefited from the diplomatic thaw with Washington and looser restrictions on U.S. travel.

Regional Contrast: The Caribbean Divide

Today, Cuba’s position contrasts sharply with that of other major Caribbean destinations, including Punta Cana (Dominican Republic) and Cancún (Mexico), both of which are enjoying record-breaking post-pandemic tourism numbers.

Outlook

As the island navigates ongoing economic hardship, industry experts warn that reversing the decline will require more than government-led efforts. Restoring investor confidence, airline routes, and international partnerships, while addressing internal structural challenges, will be crucial if Cuba hopes to regain its place among leading Caribbean tourism destinations.

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