After Losing Nearly Half Its Foreign Hotel Operators, This Caribbean Island Is Turning to Its Own Diaspora
Cuba said it will offer hotel management contracts to Cuban investors at home and abroad after Melia and other chains pulled back.
Cuba has announced it is open to turning over hotel management to Cuban investors — including those living abroad — after a wave of international hotel operators scaled back or left the island entirely.
President Miguel Diaz-Canel made the announcement in a broadcast interview on June 5, saying the country will pursue Cuban-led management for properties that foreign chains are no longer willing to operate. The move follows Spanish hotel giant Iberostar limiting its Cuban operations and, most notably, Melia Hotels International announcing on May 26 that it will cease operations at 15 of the 34 hotels it manages on the island.
A Tourism Sector in Sharp Decline
The policy shift comes amid a steep drop in visitor numbers. Cuba welcomed just 298,000 tourists in the first quarter of 2026 — a 48% decline compared to the same period last year. The island's tourism peak of 4.3 million visitors in 2019 now looks distant, with chronic infrastructure problems, energy shortages, and economic instability driving operators away.
Canadian-owned Royalton has also limited its presence on the island. The departures have left Cuba with a growing number of hotel properties and a shrinking pool of experienced operators to run them.
What This Means
By offering management contracts to Cubans abroad, the government is making a notable concession. Cuba's tourism sector has historically been tightly controlled by the state, with foreign hotel brands brought in specifically for their operational expertise and international booking networks. Handing management to diaspora investors — many of whom left the country under strained political circumstances — represents a significant shift in approach.
Whether it works depends on execution. Managing a large hotel requires distribution systems, brand recognition, and supply chains that individual investors may struggle to replicate. But with foreign operators leaving and tourism revenue falling, Cuba has limited options.
The announcement does not affect the underlying ownership of the properties, which remain state-controlled. It is strictly a management arrangement — and it is unclear how many diaspora investors will take up the offer given the island's current economic conditions.
