Cuba Revitalises Economy Through Reforms

Cuban President Miguel Diaz-Canel has announced a comprehensive reform package aimed at revitalising the economy, reducing centralisation, and granting greater autonomy to various sectors of society. In a speech broadcast on state television, Diaz-Canel stressed that the reforms were not a response to pressure from the United States, but rather intended to strengthen the country’s economic model. “This country is not standing still. This country is intelligently facing all circumstances. We cannot publicly reveal everything we are doing because the enemy watches every step we take. Our response must be unity and solidarity,” Diaz-Canel said. He explained that the reform package will be submitted in the coming weeks to the Political Bureau of the Communist Party of Cuba (PCC), one of the highest decision-making bodies in Cuba, before being discussed by the National Assembly of People’s Power, the country’s unicameral parliament. Under the proposed reforms, agricultural producers will gain greater flexibility. The government will also abolish the mandatory role of state companies as intermediaries in foreign trade and lift restrictions on vehicle imports. Diaz-Canel added that the government wants to encourage foreign investment and will grant Cuban citizens living abroad the same rights enjoyed by residents within the country. As part of efforts to improve government efficiency and reduce bureaucracy, the number of ministries will be reduced from 27 to 20. The Cuban President also announced a gradual elimination of product subsidies. Social assistance will subsequently be focused on the most vulnerable groups in society. As part of the reforms, Cuba plans to open the tourism sector to new business models and operators. The move follows the decision by several foreign companies to scale back or cease their activities in the country due to US sanctions. Several international hotel chains, including Melia Hotels International, Iberostar, Blue Diamond Resorts, and Archipelago International, announced the partial or complete suspension of their operations in Cuba in June due to sanctions imposed by the United States. The decision created uncertainty over the future of around 50 hotels, most of which are state-owned and managed through Gaviota, a subsidiary of the military-controlled holding company GAESA. Cuba’s tourism industry has faced difficulties since the COVID-19 pandemic. However, the tightening of sanctions by the United States since January has further worsened conditions, triggering a sharp decline in the number of foreign tourists. According to data from the National Office of Statistics and Information (ONEI), a total of 328,608 foreign tourists visited Cuba during the first four months of 2026. This figure represents a 55.8 per cent drop compared to the same period the previous year. In April 2026, Cuba recorded the arrival of only 30,551 foreign tourists.