The once-thriving Cuban tourism industry is in freefall. New US sanctions have choked the flow of American visitors, leaving resorts empty and workers idle. But for British travel firms, this crisis is a chance to buy cheap holidays and package them for UK tourists eager to escape the winter gloom.
Data from Cuba’s Ministry of Tourism shows arrivals dropped 40% in the last quarter compared to the same period last year. Hotel occupancy rates in Havana and Varadero have plummeted to below 30%. The collapse is directly linked to the Biden administration’s decision to tighten restrictions on travel to the island, a policy reversal from the brief easing under Trump.
“We saw this coming,” said Maria Lopez, a hotel receptionist in Varadero. “The Americans stopped coming, but we hoped Europeans would fill the gap. It hasn’t happened. My shifts were cut to three days a week, and I’m using savings to feed my kids.”
British tour operators, however, see a silver lining. TUI and Jet2 have increased their flight capacity to Cuba by 25% since January. They are negotiating heavily discounted rates with hotel chains desperate for cash. A week’s all-inclusive in Havana can now be had for £299 down from £550 a year ago.
“This is a classic buying opportunity,” said James Hargreaves, a senior buyer for a UK tour operator. “The Cuban government is desperate. They’re slashing prices to keep hotels open. We can pass those savings to our customers and still make a margin.”
But there is a human cost. Cubans working in tourism, which accounts for 10% of the country’s GDP, are bearing the brunt. Unemployment in the sector has tripled. Many have returned to the informal economy, selling cigars or driving vintage taxis for pennies.
“It’s not a game,” said Dr Elena Martinez, an economist at the University of Havana. “For every cheap holiday sold in the UK, a Cuban family loses a livelihood. The discounts are not a market adjustment. They are a distress signal.”
British firms argue they are helping. “We’re keeping the industry afloat,” countered Hargreaves. “If we didn’t buy, those hotels would close permanently. Our customers get affordable holidays. It’s a win-win.”
But the winners are not evenly distributed. UK tourists enjoy cut-price vacations while Cuban workers face an uncertain future. The stark inequality mirrors the wider global trend: corporations profit from disaster while ordinary people suffer.
The Cuban government says it is diversifying its economy, but the tourism collapse has hit hard. The sector employs 500,000 people directly and indirectly. For now, the British travel firms are the only lifeline.
“We welcome our British friends,” said Lopez, forcing a smile. “I just hope they remember that behind the cheap cocktails, there are real people struggling.”
As the US tightens the screws, Cuba’s tourism industry may have no choice but to rely on UK visitors. But the price of that reliance is being paid in Havana, not London.
