Foreign companies will have more freedom to manage facilities and set wages

14ymedio/EFE, Havana, October 17, 2025 / In its desperation to stem the sharp decline in tourism and foreign currency inflows, the Cuban government has taken a step it had long resisted: allowing international chains to rent out state-owned hotels and set employee salaries. According to EFE, sources familiar with the negotiations confirmed the first agreement was signed with the Spanish company Iberostar .
This represents a paradigm shift in a sector that until now had been tightly controlled by the Cuban State through the Ministry of Tourism and various companies in the Gaesa (Business Administration Group SA) business consortium, which is controlled by the Revolutionary Armed Forces.
The new management model, among other things, and according to the same sources, will allow hotel chains to set the salaries they pay their employees for the first time—although it is not specified whether they will be able to pay part of the wages in dollars or euros—instead of having to pay the very low salaries set by the State in pesos.
The new system aims to begin with pilot experiences in establishments of various large international hotel chains.
The first hotel on the island to implement this new formula is the Iberostar Origin Laguna Azul, located in Varadero. The agreement has already been signed and will begin operating on January 1, 2026.
Prime Minister Manuel Marrero, in advance, this year’s FITCuba trade fair, announced that among the measures the executive branch was considering to boost the sector, which is facing an unstoppable debacle, was the leasing of state-owned tourist facilities. These agreements, according to EFE, represent a qualitative leap forward compared to the first concrete announcement in this respect: the two letters of intent signed with Chinese counterparts “for the negotiation of a lease for the Copacabana Hotel” in Havana, as reported in late April by the official newspaper Granma.
The movement, sources consulted indicated, has a dual objective. On the one hand, it seeks to increase the country’s income, which is mired in a serious crisis and urgently needs foreign currency to import basic necessities such as food and fuel. continue reading
According to EFE, the new system aims to begin with pilot projects in establishments belonging to several major international hotel chains. Cuban authorities are negotiating the terms of these agreements separately with each chain, and there are apparently no common scales for setting the rent or fixed fees. Neither party has agreed to disclose the agreed rental amounts.
With this decision, the Cuban government seeks to increase its foreign currency income in two ways. Directly, through the revenue it earns from renting out properties to hotel chains. Indirectly, this measure also seeks to boost a key economic sector for the country.
With this decision, the Cuban government seeks to increase its foreign currency income in two ways.
Tourism is also Cuba’s third largest source of foreign currency (behind professional services and remittances), which it needs because it imports 80% of what it consumes. This is intended to revitalize visitor numbers, which are currently at their lowest levels this century (excluding 2020 and 2021, due to COVID-19 restrictions).
So far this year, international tourist numbers have fallen compared to 2024, when they were already the lowest in 17 years. Industry sources expect the year to end at around 1.8 million visitors, compared to 2.2 million in 2024 and the 4.7 million—the island’s all-time high—reached in 2018.
The hotels also perceive the measure as beneficial, according to people involved in the negotiations with the Cuban government. First, because it allows them to have “totally autonomous” management for the first time. Until now, although they managed hotels owned by Gaesa, they had to follow multiple official guidelines and obtain state approval for many issues, from investments to menus, including salaries.
The plan, after these pilot tests, includes expanding the process of change in management to the country’s hotels, although no timeline has been set.
In a context of global tourism growth, Cuba’s figures are alarming and have been disastrous for Spanish hotel chains, such as Iberostar and Meliá. As the specialized media outlet Hosteltur recently pointed out, consistent with another article published by the economic daily Cinco Días, these companies have persisted in their commitment to Cuba despite it being the country that is going against all the positive global forecasts for the sector, especially its direct competitors, Mexico and the Dominican Republic.
In a context of global tourism growth, Cuba’s figures are alarming and have been disastrous for Spanish hotel chains.
At the end of August, the same outlet published graphs highlighting the situation of Spanish companies compared to the official figures reported by Cuba’s National Office of Statistics and Information (ONEI). Hosteltur notes that “in 2018 and 2019, the island received 4.6 and 4.2 million international tourists, respectively, driven by a more favorable context in relations with the US and greater openness to travel.” Although pre-pandemic rates have already been surpassed in other countries, this is not the case in Cuba by a long shot.
After hitting historic lows due to COVID-19, Cuba’s numbers slowly climbed to 2,436,980 tourists in 2023. Since then, it has been on a downward spiral. Last year, the number of foreign visitors fell to 2,203,117, and in the first half of 2025, only 981,856 were received, which proportionally amounts to fewer than two million a year.
The consequences for the interests of the Spanish chains have been catastrophic. They have 71 hotels on the island, primarily Meliá (34) and Iberostar (18). Further behind are Roc (with five establishments), Valentin Hotels (with four), Sirenis (with three), Barceló, Blau, and Minor (each with two), and Axel Hotels with one. In total, they have 27,679 rooms.
The island, in fact, is the third country in terms of the number of rooms offered by Spanish hotel chains, behind only Mexico (around 50,000 rooms in 125 hotels) and the Dominican Republic (36,000 rooms in 75 establishments). The significant difference is that in these two countries, the sector continues to set records for occupancy and profits.
Between January and July of this year, the Dominican Republic received almost 7,200,000 tourists, 3.2% more than the same period last year, and Mexico registered, from January to June, no less than 47.4 million international visitors, 13.8% more than in the same months of 2024.
Taking into account that only 981,856 were received in the first half of 2025, proportionally it would not even amount to two million annually.
Meanwhile, in Cuba, only 1,259,972 international visitors arrived as of August, representing a 21.64% drop compared to 2024.
Although this represents an improvement compared to July—when the drop reached 23.2% compared to 2024—the figures already make the government’s goal of reaching 2.6 million tourists this year unfeasible. Considering that only 981,856 tourists were received in the first half of 2025, proportionally, this would not even reach two million annually, which would surpass the record negative figure of 2024, when 2.2 million travelers were received.
It was the worst record in 17 years, excluding 2020 (with 1,085,920 foreign visitors), 2021 (with 356,470), and 2022 (with 1,614,087), the years affected by the COVID-19 pandemic.
Onei recorded that 135,985 international travelers arrived on the island in August, a lower number than in July, when 142,131 arrived.
On the other hand, according to the Onei semiannual report, between January and June of this year, revenues fell below one million ($981,856), a 25% decrease compared to the same period in 2024 ($1,309,655). Consequently, revenues plummeted by 20.6% (from almost 71 billion pesos to just over 56 billion).
Onei does not provide net income after deducting operating costs—very high in the tourism sector—but in Cuba’s case, it is estimated that these represent 70% of gross income, which would give a net income of $703 million, in the best-case scenario.
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