Cuba Revitalises Economy Through Reforms
Cuban President Miguel Díaz-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, Díaz-Canel emphasised that the reforms are not being implemented in response to pressure from the United States, but rather to strengthen the country’s economic model.
“This country is not remaining idle. This country is intelligently facing all circumstances. We cannot openly reveal everything we are doing because enemies are watching every step we take. Our response must be unity and solidarity,” said Díaz-Canel, as reported on Sunday.
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 country’s highest decision-making bodies, 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 also intends to remove the mandatory role of state-owned enterprises as intermediaries in foreign trade and lift restrictions on vehicle imports.
Díaz-Canel added that the government aims to encourage foreign investment and will grant the same rights to Cubans living abroad as those enjoyed by residents within the country.
As part of an effort to increase governmental efficiency and reduce bureaucracy, the number of ministries will be reduced from 27 to 20.
The Cuban President also announced the gradual removal 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. This move follows the decision by several foreign companies to reduce or cease their activities in the country due to United States sanctions.
Several international hotel chains, including Melia Hotels International, Iberostar, Blue Diamond Resorts, and Archipelago International, announced the partial or total cessation of their operations in Cuba in June due to sanctions imposed by the United States.
This decision has created uncertainty regarding the future of approximately 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 US sanctions since January has further exacerbated the situation, triggering a sharp decline in the number of foreign tourists. This situation has prompted many foreign companies, including hotel operators and airlines, to leave Cuba.
According to data from the National Office of Statistics and Information (ONEI), 328,608 foreign tourists visited Cuba during the first four months of 2026. This figure represents a 55.8 per cent decrease compared to the same period the previous year. In April 2026, Cuba recorded only 30,551 foreign tourist arrivals.