Cuba Tourism and Hotel Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Cuba Tourism & Hotel Market Analysis

The Cuba Tourism and Hotel Market size is estimated at USD 6.60 billion in 2024, and is expected to reach USD 12.80 billion by 2029, growing at a CAGR of 14.17% during the forecast period (2024-2029).

Tourism has been an integral part of Cuba's economy and with its year-on-year growth in the number of visitors, tourism and hotel markets have been on a growth track over the years. Cuba has been attracting a growing number of leisure tourists with its beautiful landscapes, beaches, and many other factors which is helping it record increasing market share from tourism to its GDP and more investments into the hotel market. The government's strategic and intelligent decision to open new opportunities to international hotel chains as a part of the development of tourism in Cuba has resulted in strong operational ties to large tour operators and international airlines, which helped the tourism market expand further. The diplomatic relations with the United States (US), which were re-established in 2015, have largely helped Cuba to fast-growing in popularity as a travel destination. This helped the tourism market to grow and help the hotel industry expand further on the island.

The strong tourism sector in Cuba, which has predominantly been driven by the leisure travel segment majorly, has led to a spike in various hotel and accommodation facilities in the island nation. Considering the various efforts that have been carried out to facilitate ecotourism and owing to the country's image as a leading destination for high-end tourism, the hotel market has expanded with several investments during the past decade. With the nation's interest to promote more sustainable practices, the accommodation facilities, including hotels, resorts, and villas have joined hands in maintaining environmental sustainability by focusing on protection of the natural environment through measures, such as effective electricity generation, water desalination, sewage treatment, and garbage disposal system.

COVID-19 has impacted the rising global tourism and hotel industry in a faster manner without leaving time to plan to minimize the damage. The pandemic led the industry toward more unplanned crisis, owing to the faster spreading of the virus, the hotel industry was shut worldwide. The significant markets, such as the United States, Italy, the United Kingdom, France, and Germany, for the international tourist arrivals to Cuba were among the countries, which are affected by the virus in the initial days itself, and the temporary ban on international travel by many countries, which continued till mid-2020 at most regions, resulted in a drop in number of arrivals to the nation during the year. With the country's positive approach to rebuild trust and to regain growth in tourism and hotel market, the situation is expected to get better, and the market studied is expected to get back to the growth track once the severity of the virus goes down.

Cuba Tourism & Hotel Market Trends

This section covers the major market trends shaping the Cuba Tourism & Hotel Market according to our research experts:

Increasing Tourist Arrivals to Cuba is Driving the Market

Cuba Tourism & Hotel Industry Segmentation

A complete background analysis of the market, including the analysis of market size and forecast, market shares, industry trends, growth drivers, and vendors, is provided. Additionally, the report features qualitative and quantitative assessments by analyzing the data gathered from industry analysts and market participants across key points in the industry's value chain. The Market is Segmented by tourism and hotel. By Tourism, the market is segmented into Domestic Tourism and International Tourism. By Hotel, the market is segmented into Budget and Economy Hotels, Mid and Upper Mid-scale Hotels, Luxury Hotels, and Others (Homestays, Hostels, etc.)). The report offers the market sizes and forecasts in value for the above segments.