The Cuban Regime’s New Strategy to Attract Foreign Currency
HAVANA TIMES – Facing a liquidity crisis and a growing loss of financial credibility, the Cuban government has launched a new strategy to attract fresh foreign currency: granting greater autonomy to foreign companies in the tourism sector.
The first visible step of this shift was announced on October 17, 2025, when Spain’s EFE news agency confirmed the signing of the first hotel lease agreement between the regime and Iberostar for the Origin Laguna Azul Hotel in the Varadero resort area.
For the first time, a foreign chain will directly lease a state-owned property and manage it autonomously. According to the EFE report, the agreement will take effect on January 1, 2026.
According to Cuban economist Pavel Vidal, this shift by the regime seeks to offer international investors a framework of greater legal and operational security.
“In the face of a loss of financial credibility, they are trying to create arrangements that give more autonomy to foreign companies. They’re starting with tourism because they believe this sector has potential, and it’s where they’ve made multimillion-dollar investments that haven’t been recovered. Moreover, it’s where they could most quickly generate fresh foreign currency to ease the crisis,” Vidal told El Toque.
This year, several international media outlets have confirmed the regime’s multimillion-dollar debts to countries such as Spain, China, and Argentina.
In June 2025, the Catalan business association Foment del Treball denounced the serious situation facing nearly 300 Spanish companies — mostly small and microenterprises — due to the Cuban government’s nonpayment for its imports, which already amounts to more than 350 million euros.
The Mirage of the “Locomotive” Tourism Sector
At the FITCuba 2025 tourism fair held in April, Prime Minister Manuel Marrero told the accredited press that one of the most “audacious” measures to revive the depressed tourism industry would be “the leasing of state-owned tourist facilities.”
This mechanism means that the government becomes the owner-landlord, while the foreign chains assume full operation of the business in exchange for payment in foreign currency. The move is an attempt to stop the hemorrhaging of hard currency and to overhaul a sector that, far from being the economic engine promised by the authorities, has become an economic burden.
Cuba has invested billions of dollars in new hotels in recent years, even during the worst moments of the pandemic and energy crisis, sacrificing investment in essential sectors such as food production and community services.
However, the results have been dismal. According to official data, the country closed 2024 with 2.2 million international visitors, far from the 4.7 million reached in 2018. Projections for 2025 point to about 1.8 million — the worst figure of this century, excluding the pandemic years.
In August 2025, official statistics confirmed an alarming hotel occupancy rate of 21.5%, a drop across four strategic tourism indicators, and a stagnation trend that Cuban economist Pedro Monreal described as “the sixth consecutive bad year.” Monreal, one of the most followed voices in Cuban economic analysis, has been critical of the regime’s investment policy in hotels.
In October 2025, he mocked on social media the tourism minister’s claim that “conceptually, tourism remains the country’s economic locomotive,” questioning what that statement really means given the sector’s decline. “Investment in hotels, business services, and real estate accounted for half of all investment in Havana in 2023 — ten times more than in electricity, gas, and water supply, and more than seventy times more than in community services. What could possibly go wrong?” the economist wrote on his Facebook profile.
Without stable fuel, with widespread blackouts, and with restrictions on international flights from key markets, tourism investment has resulted in losses and underused facilities.
A Survival Strategy
The new model seeks to attract foreign currency not only through fixed rents but also by revitalizing the island’s tourism marketing, which has deteriorated due to years of poor service, shortages, and traveler complaints.
“The tourists who come — almost none are repeat visitors (…). The first shock is the deplorable state of the country’s infrastructure (…). Another thing that surprises them is the large number of Cubans wandering the streets at all hours of the day. The endless stretches of land where absolutely nothing is being produced are another shocking sight (…). Added to that are security problems: thefts, assaults, and scams,” a Havana tour guide told El Toque..
Sources in the sector confirmed to EFE that negotiations with hotel chains are being conducted confidentially, case by case, with no public tariffs or timelines. The first trials will take place in Varadero, Havana, and the northern keys.
More than a structural reform, the measure appears to be an urgent response to the crisis. Cuba faces not only a tourism slump but also a domestic production collapse and an alarming lack of liquidity that threatens basic food and fuel imports.
Far from being a sign of planned openness, this new step seems to be an admission of failure. Cuba bet everything on tourism and now seeks to survive by turning that bet into rental income to ease the foreign currency shortage.
The question is whether this new strategy will be enough to restore investors’ confidence — or if it will merely serve as a brief respite in a crisis that shows no immediate way out.
First published in Spanish by El Toque and translated and posted in English by Havana Times.
I have been to Cuba many times since 2004. The living conditions have definitely gotten worse for the people. I no longer stay in the resorts but rather where the Cubans themselves live. This helps the local people as they get a larger percentage of the money I spend. I bring whatever i can to give them: clothes, toys, medical supplies, etc. There isnt much to do but i am there for the warm weather and since I’m an avid reader, this works for me. The majority of Cuban people are friendly, helpful, resilient, etc. I wish more could be done to help them.
Joseph Cuba could become part of Canada only if the gov in Cuba was to change and some changes to the economic environment. IT would take at least 115 billion U S or 150 billion cd to do required upgrade to the electrical system and needed improvements for transport of people and goods plus improvements in food processing and storage and the water and natural gas system along improvements to one of the refineries. Canada can not afford to make that kind of investment without a new model the United States would try to stop
Cuba has the same problem as Canada with more old people than young people. Cuba has a good school system and is a basket case. 5 yrs ago we tried to bring a limited amount of people to Canada for 3 to 6 months and return back with needed item but the gov of Cuba demanded too much of the people involved
Yes.it’s unfortunately true that the corruption is backed by the Russians, who still are standing but Venezuela is about to fall as the last of these two supporting cast of corrupt countries backing Cuba. Soon Cubans will be on their own in the world and maybe then, they will finally stand up for themselves?
After visiting for the first time earlier this year, after my sister raved of her experience the summer of 2024, and we have very similar vacation tastes/styles/interests, I was dismayed. By the lack of…. EVERYTHING! The trash on the streets. The blackouts. Thr lines for gas. The empty store shelves. Devastation! But there was good. The young men that guided us in a tour and spent 4 hours with us made us feel like friends we’ve known a long time …. The young lady who guided us on a Cuban street food tour was so wonderful and informative and intelligent. It was heart breaking that as a teacher she was making a mere 11$ a month. her gracious company, knowledge of her country, and the love of her country and the desire for more and better was amazing. Her tip from our group of 7 was more than she made in a year of teaching from merely entertaining and educating us for a few hours. The wonderful 80 yr old former engineer who hosted us in our home for a true Cuban cooking experience will never be forgotten, or her stories. Upon coming back home, I felt horrible for going, taking from what little the Cubans have. I didn’t see ANY of what my sister described. Don’t get me wrong, as I described, I did see beauty, I saw what could be. Sadly, I saw severe desperation in the faces of many that I passed. Because they just want the freedom to exist and prosper for themselves. They have the capability, the power and the love of their country to do it, but are stifled by a regime has done everything to keep its own people down. Heart breaking. I could never go back just knowing I’m taking from good people who have so little . I’ll remember my trip for many reasons for sure
Some of the comments here about Cubans being so happy are some of the most absurd I’ve ever read I have visited Cuba for the last 25 years and I have never seen conditions in Cuba as bad as they are now, I remember going after Covid when regular flights resumed and tourist traffic was way down in Havana and hasn’t recovered leaving the airport I was shocked to see so many young Cubans at the airport leaving the island and the only people the Cubans are blaming for their dire conditions are their own government and no one else,how anyone can say they’re enjoying the island when so much suffering is happening all around them is nothing short of obscene, off course if you stay at an all inclusive in Varadero getting drunk all day from morning, noon till night you have no clue what’s happening outside of your resort. When you see beautiful homes in Havana that are the residences of high level military and government officials for sale you know conditions are terrible when even they want to take the money and escape the island.
Why would tourists spend their hard earn money and limited vacation time on going to a place where they lack the basic necessities? Had gone for over 20 years at least twice a year and the food has always been bad but you would survive. Now it’s inedible. Add to that no toilet paper or even bottled water to buy… I go on vacation to relax, not to be on some sick twisted version of the hunger games. Resort staff are always begging or up to some shady side business. The suckers who go back year over year and bring suitcases of food, medicines and other things have the wool pulled over they heads. It’s gotten so bad that returning tourists (at least in Canada) have nothing good to say and it’s spread. I no longer know a single person that is willing to go to Cuba. The allure of the beaches and cheap prices just does not cut it anymore
I have been to Cuba since 1976 several times. First Cuba is not a communist country even though it’s ruled by a communist party. Those who think or believe Cuba is a communist country should educate themselves on the subject rather than repeating western propaganda. A communist country is one where the people are in power and they control the wealth they create. No such country exists. There have been several successful revolutions all nationalized their economies but none managed to transfer power to the people. The Cuban revolution died many years ago for basically two reasons, first the forever and inhumane American embargo that choked the Cuban economy for decades and secondly the Cuban communist party and government who deprived the Cuban people of their freedom to take charge and save their country. Cuba does not need more borrowing and more foreign investment to exploit further the already dying Cuban economy. Cuba does not need to submit to the whims of international capital Cuba needs freedom for their people to take charge and save the Cuban economy and their people! The dictatorship in place will never do that because like all dictators they are only looking after themselves and how to maintain their hold on power. There is no greater, friendlier and accommodating people than the Cuban people. They deserve much better most of all they deserve to be free! Viva la Nuevo Revolution!
Eduardo Perdomo, the need to pay in cash is part of the sanction conditions on Cuba, unrelated to it not paying its debts, which is true. That has been the case for a couple of decades since it was permitted to purchase from the US after a hurricane, the same with medicines.
Concerning the US embargo, there’s no such thing as an embargo. Cuba can buy any amount of food or machinery it needs from the US. It just needs to be paid in hard currency US dollars. The reason for that is because they have defaulted on all their loans world wide and bailing them out via IMF is out of question for US businesses.
I am not sure you would lend money to a neighbor who refuses to pay their bills.
We have been going to Cuba since 1979, all over,recently since 2007 twice a year. There has been a decline of everything the last 4,5,years
but we continue to go,the Cubans are great. Intelligent polite, helpful friendly for life next trip of ours will be for Christmas and yes we will bring with us food.and gifts and we will be happy with them.
We go to Holguin.All of them are happy to see us.
And we are delighted to be there.
Communism is always a failure. It just doesn’t work.
Had Obamas policy been continued they’d be well on their way to economic recovery.
I have been to Cuba several times. The people are so kind and welcoming despite their deplorable conditions. This last visit while on a tour, I noticed so much garbage everywhere! What a shame such a beautiful country is going into such a state of disrepair. I noticed the government buildings where well taken care of but look around and you see crumbling buildings everywhere as well as blackouts. I love the Cuban people and want to support them but I can not support a regime that doesn’t care for its own people. Clean it up and I will consider going back and spend my money there otherwise I will be traveling elsewhere.
We went there right after Covid. I was surprised at how completely safe it was. I Havana, we were obviously tourists so we attracted people who wanted to exchange dollars for pesos and other services for hire but. There is great shared poverty in Cuba but no despstrate pan handlers like in every city in the USA now. Scarcity was common but everyone was well dressed and clean and there was virtually no garbage in the streets any where we went. In the evenings teenagers gathered on street corners to show off for each other like anywhere in America. Teenagers are the same everywhere. We saw thwe site where the goverment inseminates cows with good genetics for the farmers. We saw genuios level of ingenuity and resourcefullness all over the country. Cuba is a great nation and the poverty created by the embargo is just a way to keep “the threat of a good example” from emerging 90 miles from Florida.
I agree with Joseph somewhat. I have never been to Cuba but am from the island 90 miles south and they are the top of the class destinations. Why can’t they collaborate with their counterparts and help the people out. I am all for Holliday trailer parks for North Americans and Europeans who could have the same perks as we have in Florida or that we had in Florida. Since the orange monster took over and ruin everyone’s winter Cuba should seize the opportunity and step in the gap . Great turnaround in one season with solar powered units.
Shame on the government. Castro and Michael Manley are spinning in their graves while the people are starving. Like Gaza so is Cuba.
I loved my trip to Cuba over Christmas 2024. I can’t convince anyone to go. The food was meh.. not terrible for me but others in my group hated it. It wasn’t a show stopper to me but literally everyone I talk to says it is the food that takes Cuba off the option list.
Unfortunately, their government travel the world to see pretty things and indulge in finery off the backs of the money that comes into Cuba, ie: taking their share of wired transfers; money that comes in for friends and family in other parts of the the world, money that has for so many years come in from travellers- they sure get their cut!!
I loved going to Cuba, but after having to eat French fries and very little else for a whole week stay at $1600 and squeezing through the bar’s supply, (I am not a big drinker), I refuse to let the government take their share so they can enjoy time away from their country and it’s problems!!
We, my wife and myself have been going to Cuba since 2016 And we love the culture, people, and hospitality However this year 2024/25 we visited Cuba again and as of late we have seen a huge difference in Cubas heritage, culture, and love for their country . We agree, Greed from their so called Government is the cause of this, as it’s not the people. They want to prosper, be self sufficient, and make a decent living. Now what we see is desperation, confusion, a people who are struggling, suffering. Where will it end? Sadly, if another country doesn’t intervene to help over throw the current regime this island shall quickly be like Haiti full of gangs, and death. Sorry for the bluntness but I’m not the only Canadian who sees this on the horizon, regrettably!
Oh wait maybe Trump can make this (Cuba) his 51st state
I have been to Cuba several times. The last two times the food was horrible. Doesn’t matter if you go 5 star. Same food. Its my vacation. There are better options and I can no longer support them.
Cuba should become the 11th province of Canada, Canadians could buy property there after leaving Florida, Canadians would have a place in the Sun, and all sanctions on Cuba would be lifted if Cuba became part of Canada
Not much difference then how people are treated in north america .the dictation by the trump and his demonic vision he shares with his bum chum putin in world dominance .cuba is doing better then we are led to beleive
Canada has supported the tourism in Cuba for years but the decline is due to the lack of services. We pay big money to go there only to have no electricity, poor quality food and possibly get dengue with the mosquitoes and garbage in the streets. Until they get their act together (get rid of the regime) I would not go there. There are many missions that go there but only scratch the surface as to the needs and inhumane treatment of the beautiful Cuban people. I have personally supported a wonderful family for 12 years and their needs are so great, it breaks my heart. How can someone who doesn’t earn $20. a month buy food with American dollars. Sending parcels now is ridiculous because there is no fuel to deliver or electricity at the post office! The peso is worthless and that is if they get paid and whether the bank has money. It’s the worst human crisis in Cuban history and the stubborn pride of the regime is all to blame not the US embargo. They are so far in debt with other countries, they have burned every bridge. God help the Cuban people
How can this inhumane treatment of the Cuban people be allowed to continue. Surely the people, the world, has to do something without further damage to the people
I love cuba but won’t go while their own people have no power or food. I won’t support the resorts that are being prioritized over the Cubans.
I wish they would lift the embargo……am still waiting
Government Tyrant’s. I wish the people of Cuba could get rid of this corrupt Cuba regime. The people of Cuba need a better life.
The Communist Dictators (Clueless bigots who couldn’t organise a booze up in a brewery & either kill or imprison anyone who challenges their evil brainlessness) are doing just fine themselves – look at the size of Canel Diaz. Whilst the poor people starve, suffer & live amongst filth, they stash away for themselves whatever money they can & continue to illegitimately rule in the name of the ‘glorious revolution’. Unless the US go in (& wouldn’t that be the best thing – Come on Rubio) – sadly it’s not going to change – maybe become another Haiti the way things are headed. Also laugh or cry, the Tourism Minister talking of 2026 bringing a new era for tourists??? Apparently the fairies came to him in a dream one night & said everything’s going to work out just fine
How can a country be allowed to treat their people like this ? I hate the way the government there treats their own people.