Cuba fuel shortage strains tourism and travel sector

Following a US blockade of fuel imports, Cuba’s declaration that it has completely run out of diesel and fuel oil has escalated an already critical energy emergency into a systemic shock for its travel and tourism sector, with implications that extend beyond the Caribbean destination into global travel risk management, and insurance planning.

According to Cuba’s energy ministry, the country is now relying almost entirely on limited domestic gas production as rolling blackouts of up to 20–22 hours continue across major urban centres, including Havana. Hospitals, schools, and government services have been affected, while tourism infrastructure – one of Cuba’s key sources of foreign currency – has come under significant strain.

The immediate impact on travel operations has been severe. Airlines servicing Cuba have already been forced to suspend or reduce flights due to aviation fuel shortages, while hotels in key resort areas have consolidated guests or temporarily closed operations to manage electricity shortages. Industry data indicates widespread itinerary disruption, including cancelled excursions and reduced availability of transport services for visitors already on the island.

The situation has broader implications for insurers and assistance providers, particularly regarding stranded travellers, medical evacuation feasibility, and business interruption claims linked to energy-dependent infrastructure failures. Destination risk ratings may also require reassessment if sustained fuel scarcity continues.

From a global tourism perspective, Cuba’s downturn may redirect demand toward alternative Caribbean destinations, while also increasing pressure on regional aviation networks already operating under capacity constraints.

Karen Demerutis, Lead Analyst at International SOS Security, commented: “Fuel shortages in Cuba have been worsening since January 2026 following the US oil embargo on the island. Since then, only one major oil shipment reached Cuba in late March, providing temporary relief to electricity generation and transport services. However, on 13 May, the Cuban government officially announced that oil reserves had been depleted, which means infrastructure failures and prolonged outages are likely to worsen.

“We have assessed that these conditions are likely to persist over the short-to-medium term (60 to 90 days), creating both direct and indirect operational risks for travellers. Power outages are now lasting up to 18–22 hours daily, affecting water pumping, refrigeration, telecommunications, and transport availability across large portions of the island.”