Cuba Announces Historic Shift: Hotels to Be Managed by Cuban Hands

In a move that many analysts are calling a turning point for the island’s tourism industry, Cuba’s Council of State approved a decree this week that will let Cuban‑owned firms take over the management of hotels that were previously run by foreign entities.

For years, most of the island’s coveted beachfront resorts and historic boutique hotels have been operated under long‑term contracts with European and Canadian groups. Those arrangements helped fund the development of new rooms, but they also meant that a big slice of the revenue streamed out of the country.

Now, after months of behind‑the‑scenes negotiations, the government says it will open the door for Cuban entrepreneurs, cooperatives and state‑run tourism companies to run these properties. The decree does not ban foreign investors outright – they can still own the physical assets – but day‑to‑day operations, staffing and marketing will be in Cuban hands.

“It’s about giving our people the chance to develop their own expertise and keep more of the money generated by tourism within our economy,” said a senior official from the Ministry of Tourism during a brief press conference. “We still value foreign investment, but we want a more balanced partnership.”

Industry insiders warn that the transition could be bumpy. Many of the hotels rely on sophisticated reservation systems, loyalty programs and brand recognition that foreign operators have built over decades. Cuban managers will need to quickly learn how to maintain service standards that international travelers expect.

Still, the sentiment on the ground is largely optimistic. Young Cubans who have studied hospitality abroad are eager to bring fresh ideas back home, and existing local staff see a chance for career advancement without being tethered to foreign chains.

Tourism accounts for roughly 12 % of Cuba’s GDP, and the sector has been hit hard by the pandemic and the lingering effects of U.S. sanctions. By allowing more domestic control, officials hope to create jobs, increase tax revenues, and ultimately offer a more authentic Cuban experience to visitors.

The decree also calls for a new regulatory body to oversee the transition, ensuring that standards are met and that any disputes between foreign owners and Cuban managers are settled fairly. It will take several months before the first hotels fully switch to Cuban management, but the message is clear: the island is ready to take a bigger stake in its own hospitality future.