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Cuba's Struggling Economy Pushes Tourism Sector Into Its Worst Slump in Decades as Travel Declines

· 5 min read
Cuba's Struggling Economy Pushes Tourism Sector Into Its Worst Slump in Decades as Travel Declines
Cuba Cuban citizens are expected to deal with blackouts of up to eight to 10 hours daily, outside the capital city of Havana. AFP

The U.S. military operation to capture Venezuelan President Nicolás Maduro unleashed a series of collateral effects across Latin America. Beyond triggering diplomatic tensions, Maduro's arrest shifted decisions once handled by the Venezuelan government into U.S. hands.

One of the most significant shifts has been control over Venezuela's oil. Since Maduro's Jan. 3 arrest, President Trump has unveiled a billion-dollar plan to sell oil from Venezuela's reserves, adding that the U.S. will control the proceeds from those sales.

With the United States overseeing Venezuelan crude, Cuba has been among the countries hardest hit by the change. This week, Trump said Cuba "will be failing pretty soon" as a result of its ongoing economic collapse and American sanctions.

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"We are going to see what happens with Cuba," Trump said. "Cuba will be failing pretty soon. It's really a nation that is very close to failing. They got their money and their oil from Venezuela. They're not getting that anymore," he added.

Cuba has long lived under U.S. sanctions and developed its own ways to generate revenue. One major source has been tourism, which according to a 2024 Columbia Law School study once brought in more than 4 million visitors a year and more than $3 billion annually. However, a new report by The Associated Press shows that one of the island's economic cornerstones is now in critical condition.

After averaging more than 4 million visitors as recently as 2019, only about 1.6 million tourists visited Cuba between January and November 2025, a drop of nearly 70 % since 2018. The COVID-19 pandemic, combined with ongoing U.S. threats and sanctions, has stalled tourism in the Caribbean nation.

The economic downturn in Cuba has affected millions of people, including Rosbel Figueredo Ricardo, who recounted to The Associated Press his personal experience as a street food seller.

Figueredo sells a Cuban snack known as "chivirico," fried flour chips sprinkled with sugar. He said he used to carry 150 bags of chips every morning and sell out by late afternoon, but now he loads only 50 bags, works from dawn until night, and sometimes doesn't sell a single bag.

"I'm a mid-level industrial mechanical technician, and look at me here," Figueredo, a soon-to-be father of four, told The Associated Press. "This is our day-to-day, so we can eat," he said.

As noted by the outlet, some Cubans said growing tensions between their country and the U.S. are further worsening Cuba's economic situation. They also worry that water and power cuts, along with large piles of garbage in tourist areas, have scared visitors away.

Gaspar Biart, who has been driving a double-decker tourism bus in Havana for 16 years, told The Associated Press that Cuba has changed dramatically in recent months, adding that sanctions imposed by Trump have shut many doors for the island.

"We can't even breathe," Biart said.

When tourism was booming and petroleum was flowing, eight double-decker sightseeing buses made three trips a day across Havana. Now, Biart told The Associated Press there are only four, and most leave largely empty.

"What we're missing are customers," he said. "That's what all Cubans want. Tourism is a driving force for a country's economy."

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Tags: Cuba, United States, Latin America, Donald Trump