Cuba’s Tourism Faces Crisis: International Arrivals Drop 20% in 2025, But Domestic Spending on Hotels and Dining Shows Growth—Can Local Tourism Save the Industry?

Published on November 22, 2025

Cuba’s tourism faces crisis: international arrivals drop 20% in 2025, but domestic spending on hotels and dining shows growth—can local tourism save the industry? In the midst of dwindling foreign visitors and stubborn economic turbulence, the Caribbean island is turning inward, relying on Cuban travellers to fill hotel rooms, dine in restaurants, and keep resorts afloat. While this domestic surge brings hope, it comes against a backdrop of long‑term structural issues—blackouts, weak air connectivity, shrinking airline capacity, and a hospitality sector built for global guests now having to adapt fast.

Cuba’s Tourism Faces Crisis: International Arrivals Drop 20% in 2025, But Domestic Spending on Hotels and Dining Shows Growth—Can Local Tourism Save the Industry?

Cuba, once a bustling hotspot for international tourists, is facing a severe downturn in its tourism industry. For years, the Caribbean island has relied heavily on foreign visitors, but 2025 has brought a startling decline in international arrivals. Despite a nearly 20% drop in the number of foreign tourists, there is a silver lining—domestic tourism in Cuba is on the rise, with local spending on food, hotels, and experiences climbing. This shift towards local tourism presents an interesting dilemma for Cuba’s hospitality industry. Can domestic spending cushion the blow and keep Cuba’s tourism sector afloat?

A 20% Drop in International Arrivals: The Impact on Airlines and Tourism

The stark reality of Cuba’s tourism crisis is reflected in the figures for 2025. International tourist arrivals have plummeted by 20.5%, falling from 1.7 million in 2024 to just over 1.36 million in the first nine months of 2025. This significant decrease is a blow to Cuba’s already struggling tourism infrastructure. The decline in international travelers is primarily driven by global economic uncertainties, ongoing political tensions, and the deteriorating condition of key relationships with major tourism markets like Canada, Russia, and several European countries.

This sharp drop in international visitors has had an undeniable impact on the airline industry, which plays a crucial role in connecting Cuba to the world. Major airlines that traditionally served Cuba, such as Air Canada, Aeroflot, and Condor, have been forced to scale back their operations. Air Canada, which has historically been a major carrier to Cuba, has reduced its frequency of flights to Havana and other key destinations. Similarly, Russian flights, especially from Aeroflot, have seen a marked decrease, reflecting a broader trend of declining Russian tourism to Cuba.

As Cuba faces fewer international flights and fewer foreign visitors, the hospitality industry is also struggling. Hotels that once thrived on the influx of tourists are now finding themselves with lower occupancy rates. The average occupancy rate for hotels catering to international travelers has dropped from 24.3% in 2024 to just 18.9% in 2025, according to the National Office of Statistics and Information (ONEI). For a country so dependent on tourism, this decline is devastating. Hotels like Melia, Iberostar, and Paradisus are feeling the pinch, with many adjusting their offerings or cutting back on services to cope with the reduced demand.

Can Local Tourism Revive Cuba’s Struggling Industry?

While international tourism is in decline, there is some hope in the form of domestic tourism. The number of Cuban nationals staying at hotels and resorts has increased, albeit modestly. Domestic tourism in Cuba rose by 4.7% in the first nine months of 2025, with nearly 1.58 million Cubans opting for staycations or weekend getaways. The revenue generated from domestic tourists has also risen by 8.8%, providing a much-needed boost to the hospitality industry. This trend is being driven by increased spending in gastronomy, with food and drink now accounting for almost half of all revenue from domestic tourism.

The surge in domestic tourism is, in part, a result of the economic crisis faced by many Cubans, which has pushed them to seek leisure and relaxation within the country rather than traveling abroad. This shift has prompted hotels to cater more to local needs, offering affordable packages that include food and entertainment. In cities like Havana, Hotel Nacional and Hotel Habana Riviera have adapted to the local market by emphasizing gastronomy and local experiences, such as Cuban music nights and culinary festivals. For many Cuban families, a weekend stay at these iconic hotels offers an affordable escape from the daily pressures of life.

But while domestic tourism provides a cushion, it cannot fully replace the revenue from foreign tourists. The increase in local spending cannot offset the massive drop in international arrivals. International tourists tend to spend more on travel services, luxury accommodations, and long stays, contributing significantly to the island’s foreign-exchange earnings. The reliance on domestic spending, while important, raises concerns about the sustainability of the industry if foreign tourists continue to stay away.

Airlines Adjust to Declining Demand: What Travelers Can Expect

With fewer international visitors, airlines operating flights to Cuba are adjusting their schedules and routes. Cubana de Aviación, the state-owned national airline, has been hit particularly hard by the decline in demand. Despite being the primary carrier for domestic and regional flights, Cubana has reduced some of its international services, particularly to countries like Russia and Canada, where demand has weakened. Similarly, foreign airlines like Air France, Iberia, and American Airlines are re-evaluating their routes to Cuba, with some flights to Havana and other major Cuban cities being cut or reduced in frequency.

For travelers hoping to visit Cuba, these reductions in airline services could mean fewer flight options, higher ticket prices, and longer wait times for available seats. However, flights are still available from major cities in North America, Europe, and Latin America, albeit at a premium due to the reduced availability. Airlines like JetBlue and American Airlines are still flying to Cuba, but with fewer daily departures. The best options for budget-conscious travelers are likely to be from Mexico City and Panama City, where airlines like AeroMexico and Copa Airlines continue to offer flights to Cuba.

Travelers should also be aware of potential delays or disruptions in flight schedules due to Cuba’s ongoing energy crisis. Blackouts and disruptions in basic services could affect the availability of ground transportation, hotel check-ins, and other critical infrastructure. While Cuba remains a popular destination for those seeking history, culture, and natural beauty, travelers should plan for some degree of unpredictability.

Adapting to the Changing Landscape: How Hotels Are Innovating

As Cuba’s tourism industry faces a new reality, hotels are rethinking their strategies to stay afloat. Many international hotel chains have scaled back their operations or shifted focus to cater more to the local market. Iberostar, Melia, and Accor have reduced their presence in Cuba, with some of their hotels closing temporarily due to low occupancy rates. However, these chains have not abandoned the island entirely. Instead, they have adjusted their offerings, catering more to domestic tourists while still attracting a limited number of international guests.

Local hotel operators are also making changes to attract more Cuban nationals. Hotel Playa Caleta, located in the beautiful coastal city of Varadero, has been one of the pioneers in offering affordable all-inclusive packages for Cuban families. These packages include meals, entertainment, and excursions, giving local families a taste of the luxury they may otherwise not be able to afford. The rise in domestic tourism is also helping to stimulate local economies, as domestic travelers spend money on local restaurants, shops, and attractions, providing a much-needed boost to Cuba’s smaller businesses.

However, as international tourism continues to struggle, hotels are forced to find ways to balance domestic and international needs. Some hotels are focusing on all-inclusive packages, which tend to attract local tourists, while others are investing in luxury experiences to appeal to the smaller number of international travelers who remain. The key to Cuba’s hospitality recovery will likely lie in its ability to create a hybrid tourism model—one that combines the best of both domestic and international travel while adapting to the country’s unique challenges.

Travel Tips for Visiting Cuba Amid the Crisis

If you’re planning a trip to Cuba, there are a few essential travel tips to keep in mind to ensure a smooth and enjoyable experience.

• Book Flights in Advance: With reduced flight availability, it’s a good idea to book your flights to Cuba as early as possible. Major airlines such as American Airlines, JetBlue, and Copa Airlines continue to operate flights, but availability is limited. Booking early can help secure the best rates.
• Plan for Power Outages: Cuba’s energy crisis means that power outages are becoming more frequent, especially outside of major cities. Be prepared for occasional disruptions in electricity, which may affect your hotel and the availability of certain services.
• Pack Accordingly: Due to potential shortages of goods and services, bring essential items like toiletries, sunscreen, and medications. While Cuba’s tourist hubs are generally well-stocked, smaller towns and rural areas may experience occasional shortages.
• Embrace Local Experiences: With domestic tourism on the rise, Cuba’s local cultural experiences are flourishing. Try a Cuban cooking class, explore the island’s vibrant art scene, or take part in a salsa dancing lesson. These experiences offer a deeper connection to Cuba’s rich heritage while helping support the local economy.
• Consider All-Inclusive Packages: Many hotels are now offering all-inclusive deals, especially for local tourists. These packages provide value for money, with meals, drinks, and entertainment included in the price.

Conclusion: The Future of Cuba’s Tourism Industry

While the future of Cuba’s tourism industry is uncertain, there is a glimmer of hope in the rise of domestic tourism. As international visitors continue to decline, the country’s focus on local travelers, along with increased domestic spending, may help stabilize the economy in the short term. However, the long-term sustainability of Cuba’s tourism industry will depend on the country’s ability to address its economic and energy challenges, improve infrastructure, and create a more resilient tourism model that can weather both domestic and international shifts.

Cuba’s tourism faces a dramatic shift as international arrivals drop by 20% in 2025, while domestic spending on hotels and dining rises. Can local tourism be the lifeline that saves Cuba’s struggling hospitality industry amidst its economic turmoil?

Cuba’s tourism industry is at a crossroads, but with innovation, adaptability, and a focus on local experiences, the island could yet find a way to navigate this turbulent period and emerge stronger on the other side. For now, Cuba remains a destination of choice for those willing to embrace its unique charm, even amid the challenges of an ever-evolving tourism landscape.