(MENAFN- The Rio Times) Cuba is losing the race to bring travelers back. From January through September 2025, the island drew about 1.37 million foreign visitors-roughly 20 percent fewer than the same period last year-making it unlikely to top 2024's already weak total of 2.2 million.

For an economy that leans heavily on services and needs hard currency, that shortfall bites. The picture on the ground explains why. Power cuts roll through cities, fuel is scarce, and basic goods can be unpredictable.

Resorts often keep the lights on with generators, but outside those zones the strain is visible-in transport, restaurants, and small suppliers that turn a vacation into an economy-wide paycheck.

Canada still provides just over 40 percent of arrivals, yet even that flow has thinned. Trips from the United States are softer and Russian tourism has dropped by more than a third.

One bright spot is Argentina, where a stronger currency has nudged outbound travel up. Airlines and tour operators see the same signals and are cautious with capacity.



The story behind the story is policy. Decades-old U.S. restrictions complicate banking and payments, but Cuba's deeper drag is internal: a state-first model that underinvests in infrastructure, sends mixed signals to private enterprise, and leaves too little room for competition to raise standards.
Cuba's tourism slump exposes deeper economic strain
In 2024, the economy shrank 1.1 percent-its second annual contraction-underscoring how brittle the system has become.

Where rules are clear, property rights respected, and small businesses can scale, tourism tends to ripple into better roads, more flights, steadier supplies, and higher household incomes. Where central control and rationing dominate, those ripples fade.

Why this matters to outsiders: fewer visitors mean tighter government budgets, more pressure on imports, and rising incentives for people to leave.

Travelers may face thinner route networks and higher fares; businesses weighing Cuba will see higher operating risk and uneven service.

The path to a healthier season is not mysterious-reliable power, predictable rules, and space for entrepreneurs and outside capital to build.

Cuba's beaches and culture are enduring assets. The question is whether the system around them will finally let those assets work for the whole island.

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