Major Caribbean destination closing hotels this weekend due to lack of fuel for staff; government consolidates travelers as energy crisis deepens across island nation
Donald Trump’s efforts to cut off fuel shipments to Cuba are hitting the island nation’s tourism industry harder than expected. The strategy, designed to pressure the government through economic isolation, is now forcing major beach resorts to close their doors and consolidate guests as gasoline shortages make basic operations impossible. At least two large resorts on Cayo Coco, a popular northern Caribbean destination, announced Friday that they would be shuttering this weekend a dramatic acknowledgment that the tourism sector, one of Cuba’s crucial revenue sources, is buckling under the fuel squeeze.
The consequences are immediate and tangible. At Mojito Cayo Coco, management cited insufficient fuel to transport employees to work as the reason for the shutdown. Rather than operate with skeleton crews, the resort decided to transfer approximately 200 guests to Sol Cayo Coco, roughly 30 miles away. The move represents more than just inconvenient guest relocations it signals that Cuba’s tourism infrastructure, built on reliable fuel supply and operational flexibility, is breaking down under the pressure of sanctions.
Workers at the affected resorts expressed frustration about the situation. One employee at Mojito, speaking on condition of anonymity due to fear of retaliation, characterized the shutdowns as unprecedented in their experience. Despite witnessing multiple temporary closures due to hurricanes over more than two decades of employment, the worker emphasized that fuel-related shutdowns represented a new category of crisis one created by policy rather than nature.
The consolidation extends beyond just Mojito. Tryp Cayo Coco is also closing, combining with Mojito to affect approximately 850 rooms of capacity. The front desk at Sol Cayo Coco confirmed it would receive displaced guests from both properties, effectively serving as a consolidated hub for tourism in the region.
The broader government response
Cuba’s government confirmed Friday night that it was implementing what it called an “efficiency and facility consolidation plan” across the tourism sector bureaucratic language for shuttering some hotels while maximizing occupancy at others. The government characterized the move as part of broader contingency measures addressing U.S. threats to Cuba’s fuel supply. By concentrating guests in operational properties, Cuban authorities said they hoped to capture maximum external revenue during the critical high season a strategic retreat acknowledging that they can’t maintain all operations simultaneously.
The Canadian tourism connection
The impact ripples northward into Canadian travel markets. WestJet Airlines Ltd. and Sunwing Vacations, major providers sending hundreds of thousands of Canadian sun-seekers to Cuba during winter months, announced they were closely monitoring the situation. Transat AT Inc., another significant player in Canada-Cuba travel, described the government’s consolidation plan in more measured language, confirming that properties remain operational while ensuring service quality a statement designed to reassure travelers already booked for Caribbean vacations.
Canada itself shifted its travel guidance earlier in the week, upgrading advice to “exercise a high degree of caution” due to the energy crisis and shortages of basic goods. That adjustment signals concern about broader systemic problems extending beyond tourism.
The sanctions timeline
Trump’s pressure campaign intensified in early January when Washington effectively cut off fuel shipments from Venezuela, Cuba’s top energy ally. The administration has since threatened additional tariffs on nations sending oil to the island economic threats designed to isolate Cuba completely from fuel sources.
The strategy creates a cascading crisis: without fuel for transportation, resorts can’t operate; without operational resorts, tourism revenue evaporates; without tourism revenue, Cuba loses hard currency needed to purchase fuel elsewhere. The cycle becomes self-reinforcing, with each shortage worsening the next shortage.
For now, Cuba’s government has chosen damage control over complete collapse consolidating operations, maintaining what revenue it can, and hoping the high season provides enough incoming dollars to weather the deepening crisis. Whether this strategy succeeds depends on whether tourism providers continue booking Cuba despite the uncertainties, or whether widespread cancellations accelerate the economic deterioration already taking root across the island’s once-thriving resort infrastructure.
