Cuba's tourism industry is currently facing significant challenges as the country grapples with ongoing power blackouts and the potential implications of changing U.S. political dynamics. The recent electricity crisis has been exacerbated by Hurricane Rafael, which struck in early December 2024, leading to a third major blackout on December 4, 2024. These blackouts have raised concerns among tourism operators, particularly after Sunwings Vacations Group removed 26 hotels from its portfolio following a four-day blackout in late October. This decision reflects the growing frustration within the tourism sector, which is vital for Cuba's economy. [cc9c5c05]
In 2023, nearly one million Canadian tourists visited Cuba, making Canada a key market for the island's tourism. However, the ongoing blackouts have raised questions about the reliability of services, prompting fears that tourism numbers may continue to decline. Lessner Gómez, a prominent figure in the industry, has emphasized that tourism is a priority for the Cuban economy, especially as the country seeks to recover from the dual impacts of the pandemic and the energy crisis. [cc9c5c05]
The current moment is described by historian Jesús Arboleya as one of the hardest for the Cuban Revolution, with the tourism sector struggling to maintain its previous levels of activity. The anticipated influence of U.S. political figures, particularly Marco Rubio, on U.S.-Cuba relations raises concerns about the possibility of increased sanctions, which could further hinder tourism recovery efforts. Since the Obama administration, tourism numbers have halved, highlighting the fragility of this critical sector. [cc9c5c05]
Cuba's energy crisis is critical for its economic recovery, with severe fuel scarcity and outdated infrastructure leading to frequent blackouts. Notably, four power failures occurred in mid-October 2024, and a recent failure at the Matanzas power plant plunged Havana into darkness. Fixing the grid is estimated to cost around $10 billion, and Cuba's economy is currently at its worst since 1993, worsened by the COVID-19 pandemic and complicated by the U.S. embargo that hinders infrastructure repairs. [d08790ab]
Cuba's geostrategic position is vital for Gulf of Mexico stability, and potential aid from countries like the U.S., Colombia, Mexico, Venezuela, Russia, and China could play a significant role in addressing the crisis. Mexico provided $700,000 in 2022 and 412,000 barrels of oil in response to outages, while Russia pledged $65 million for energy crisis support. Additionally, China is involved in renewable energy projects, and experts suggest that Cuba needs to shift to solar energy for long-term recovery. [d08790ab]
Economist Ricardo Torres has questioned Cuba's investment strategy, suggesting that prioritizing tourism over necessary upgrades to energy infrastructure may be misguided. The ongoing energy crisis has not only affected tourism but has also paralyzed economic activity across various sectors, leading to widespread hardship among the population. As Cuba prepares for potential shifts in U.S. policy, the tourism industry remains on edge, bracing for the impact of both natural disasters and political changes. [cc9c5c05]