Caribbean & Central America - September 2025

The latest numbers from Cuba’s national statistics institute (Onei) show that Cuban hotel occupancy dropped by nearly seven percentage points in the first half of this year to 21.5%, while tourist arrivals slumped by 25% to 981,856.

Cuba’s tourism sector is in a jam. The country appears to be caught in a vicious circle, where power cuts, water shortages, and garbage on the streets discourage visitors; but fewer visitors, in turn, bring in less of the foreign currency that the government desperately needs in order to fix the collapse in essential services.

In effect, the tourist business is trying to survive with only one out of every five beds occupied. US tourists are dwindling as the US administration led by President Donald Trump tightens sanctions further. Officially US citizens are banned from visiting the island for tourism, but 12 categories of visits are still allowed (including sports and educational visits) These have become more restrictive. US citizens are also banned from using hotels linked to a prohibited list of companies: Torre K-23, a hotel which is the tallest building in the country, has just been declared off-bounds to US visitors.

Cuba inflation

On 11 August, Cuba’s national statistics office (Onei) released new figures showing monthly inflation in July was 0.49%, bringing the annual rate to 14.37%. This compares with monthly inflation of 0.75% in June when the annual rate was 14.75%. The country closed 2024 with an inflation rate of 24.88%.