Cuba's Tourism Industry Faces Collapse as Major Hotel Group Withdraws

By KI SU JEONG Posted : June 2, 2026, 11:03 Updated : June 2, 2026, 11:03
Cuban cityscape [Photo=Getty Images]
쿠바, once known as the "Pearl of the Caribbean," has rapidly descended into a graveyard of capital. The lively salsa music that once filled the streets has fallen silent as 62 luxury hotels and resorts have closed their doors. The Canadian hotel group Blue Diamond Resorts, which supported Cuba's tourism industry, has decided to withdraw completely.
The reasons for this withdrawal are multifaceted. U.S. sanctions, a shortage of aviation fuel, power outages, and a reduction in key flight routes have all converged. The company cited "ongoing operational constraints" as a significant factor. This situation illustrates how vulnerable a nation's core industry can be to external shocks.
Statistics paint a stark picture. From January to April this year, only 328,608 foreign tourists visited Cuba, a 55.8% drop compared to the same period last year. In April alone, the number was just 30,551. Tourists from Canada, which accounted for 40% of visitors, decreased by 63.8%. With the departure of these major players, the entire ecosystem encompassing hotels, airlines, travel, and local businesses has suffocated.
It is uncomfortable to dismiss this as a foreign disaster. Tourism is the most vulnerable industry to external conditions. We experienced the horrific pain of an ecosystem shutdown during the COVID-19 pandemic. Each time geopolitical tensions arise, such as the THAAD conflict or strained Japan-South Korea relations, the tourism sector is hit hardest. While it is encouraging to hear foreign languages again in areas like Myeongdong, Hongdae, and Seongsu-dong, we must assess how precariously this recovery stands.
The government is pushing to achieve its goal of attracting 30 million tourists by accelerating efforts. The direction is correct, but impressive numbers do not equate to industry strength. Simply increasing visitor statistics does not create a resilient structure. It is crucial to consider not just how many tourists arrive, but also where they come from, how much they spend, and the economic benefits they bring to local communities.
The Korean Peninsula also faces persistent geopolitical risks. If security crises or diplomatic tensions arise, leading foreign airlines to cut routes and major investors to withdraw funds, any recovery could be abruptly halted. Given the high dependency on global chain hotels and foreign platforms, it is time to evaluate whether the domestic ecosystem can withstand the withdrawal of external capital. While tourism may appear to be a glamorous consumer industry, it is, in reality, a complex ecosystem tightly interwoven with lodging, transportation, and local commerce. A disruption in one area can quickly ripple through the entire sector.
What we need to cultivate now is a solid foundational strength. We must diversify the demand for inbound tourism concentrated in specific countries and strengthen domestic tourism as a robust defense. Local tourism should not be a one-time event but rather a structure that promotes sustained stays and spending. Universal infrastructure that allows those with mobility challenges to travel comfortably, a safety response system that activates during crises, and the resilience of small businesses are all essential.
Cuba's reality serves as a mirror that could reflect our own situation at any moment. Tourism may grow when the winds are favorable, but true strength is tested in times of crisis. Before celebrating the figure of 30 million, we must first solidify the roots of an industry that can withstand fierce external pressures. Substance and structural improvement should take precedence over flashy promotional slogans.



* This article has been translated by AI.

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