Cuba's Tourism Industry Plummets After US Sanctions Tighten

Tue Jun 16 2026 14:50:35 GMT+0000 (Coordinated Universal Time)

US tightening of sanctions has cut foreign visitors to a 58.4% decline, causing airline and hotel shutdowns on the Caribbean island.

U.S. sanctions on Cuba have sharply curtailed foreign tourism, with visitor numbers falling by more than half in the first five months of 2026. Air Canada and other airlines have suspended flights, while major hotel chains such as Meliá and Iberostar halted operations in response to a U.S. deadline that forces companies to cease business with state‑owned Gaesa. The sanctions have amplified pre‑existing shortages of fuel, medicine, and food, leading to blackouts, waste accumulation, and even rationing of communion wafers. These pressures highlight the economic strain the island faces amid heightened U.S. pressure.

Cuba's tourism industry plummets after US sanctions tighten

The number of foreign travellers visiting Cuba has fallen sharply since the beginning of the year as U.S. sanctions tighten, according to the island’s national statistics agency, Onei.

Fewer than 360,000 people visited the communist‑run island in the first five months of 2026 – a 58.4 % drop from the same period last year.

The Trump administration has specifically targeted the tourism sector, a key source of income for Cuba’s beleaguered government. As a result, several foreign airlines and hotel operators have shut down their services, further reducing visitor numbers.

Earlier this month, Air Canada announced it was suspending flights to Cuba indefinitely, citing political and economic uncertainty. The carrier had already stopped flying to the island in February because of a shortage of aviation fuel.

Canadian tourists represented the largest foreign contingent in 2026, making the airline’s withdrawal a significant blow.

Spanish hotel chains Meliá and Iberostar also halted operations at many properties ahead of a U.S. deadline of 5 June for companies to cease doing business with state‑owned conglomerate Gaesa.

U.S. Secretary of State Marco Rubio has accused Gaesa, controlled by Cuba’s armed forces, of acting as a “state within a state” and of hoarding profits for a small elite while repressing dissent.

The sanctions and an effective oil blockade have worsened shortages of fuel, medicine, and food. The survival rate for children with cancer has fallen from 85 % to 65 % since January, according to state‑run Cubadebate.

Fuel shortages have paralyzed sectors such as rubbish collection, leaving piles of garbage in city streets. Frequent, widespread power cuts have triggered rare protests on the island.

Catholic priests say they have been asked to ration communion wafers as production stalls due to limited electricity.

The island’s community is feeling the pressure of every aspect of daily life in a crisis that is amplifying the impact of U.S. policy on Cuba's fragile economy.