Havana in June 2026: A couple sells hand-rolled Cuban cigars. image: imago/Pablo Miranzo
The Cubans are resilient, but now the situation on the Caribbean island is becoming life-threatening. A Cuba expert assesses the situation.
June 21, 2026, 9:16 p.mJune 21, 2026, 9:16 p.m
Dorothea Meadows / t-online
Cuba is suffering like never before from US sanctions. Tourism, once the Caribbean island nation’s most important source of foreign currency, has effectively collapsed. Even the hope of Russian holidaymakers replacing the lack of guests from Europe and North America has been dashed. There is great disappointment with the former “brother state” Russia. Now the communist leadership is relying on market economy reforms to lead the country out of the crisis that threatens its existence.
The numbers illustrate the extent of the decline: in March 2026, only 250 Russian tourists traveled to Cuba. A year earlier there were more than 11,000. The Canadian market, traditionally the most important source of foreign visitors, has also almost collapsed because airlines are no longer flying to the island due to a lack of fuel. This is devastating news for a country that desperately relies on foreign currency.
Families can no longer buy basic goods
People feel the consequences directly. Leon Latozke, editor of the German news portal Cuban Studiessaid t-online: “The situation for people is dramatic.” Those Cubans who have built up a small private livelihood in recent years are hit particularly hard. “Hoteliers, taxi drivers, private landlords and restaurant owners are losing almost all of their income.”
For many families, it is no longer about economic advancement, but rather about survival, says Latozke: “Without tourists there is no foreign currency, and without foreign currency you can hardly buy basic goods – even if they were theoretically available.” For a long time, employees in the tourism sector in particular were considered comparatively privileged because they had access to hard currencies. “This advantage has now disappeared.”
Russia has recently been one of the most important sources of hope for the Caribbean island. After the loss of many Western holidaymakers, Havana specifically focused on Russian guests. But this plan also failed.
The garbage in the streets of Havana is piling up: A man looks for food in the trash.image: imago/pablo miranzo
“Painful”: Russian tourists stay away
“Russia had become the most important visitor stream in recent years and was ideologically seen as a loyal brother,” says Latozke. The fact that there are now hardly any Russian tourists coming is seen as a painful change in Cuba. The reason lies primarily in the economic problems of Russian travelers as well as difficulties with flight connections and payment processing. “Nevertheless, in the Cuban perception, it is painful that this partner is also missing.”
While hotels are empty and restaurants are fighting for their existence, the supply and energy crisis is worsening. Increased US sanctions against the military company Geasa, which also includes the largest hotel operator Gaviota, are making operations even more difficult.
Cubans demonstrate amazing resilience
How long the country can withstand this development remains to be seen. “The Cuban government has demonstrated remarkable resilience that Western observers have repeatedly underestimated,” said Latozke. But the current situation is extraordinary. “The combination of the oil embargo, collapsing tourism revenues and the withdrawal of international hotel chains is a new quality.”
The crisis has now reached a dimension that goes far beyond economic problems. Latozke refers to reports of dramatic shortages in the healthcare system. “If the survival rate of children with cancer has actually fallen from 85 to 65 percent, as the Cuban news and debate portal Cubadebate reports, then that shows: It is no longer just about political inconvenience, but about humanitarian substance.”
Everyday life in a crisis: A man taps water from an underground pipe using a hose.image: imago/pablo miranzo
Havana announces market economy reforms
Against this background, the government in Havana has now initiated a remarkable change of course. The National Assembly passed a package of 176 reforms. In the future, larger private companies will be allowed, private banks will be approved and foreign investments in the private sector will be made easier. Tourism, agriculture and the foreign exchange market should also be opened up more to private investors.
Cuba’s form of government
Cuba is a centrally organized socialist island state. The leading role of the Communist Party (PCC) is enshrined in the constitution. The state derives its legitimacy from the 1959 revolution under Fidel Castro as well as its demarcation from the USA and its tough sanctions policy.
President Miguel Díaz-Canel recently spoke of the need for “urgent changes”. Many Cubans may hope that the reforms will not come too late. While politicians are discussing the country’s future course, millions of people are already struggling with power outages, supply bottlenecks and an economy that offers fewer and fewer prospects.
Sources used:
- Email exchange with Leon Latozke from Cuban Studies
- Material from the AFP news agency
- onei.gob.cu: Oficina Nacional de Estadísticas e Información