HAVANA — Cuba's economic crisis has deepened dramatically as an oil embargo and decades of failed central planning have combined to devastate what was once a thriving tourism sector, leaving Havana's streets empty and businesses struggling to survive. Gasoline sales are now limited to 20 liters per vehicle, with owners waiting months for a turn at the pump, while international airlines including Air France, Air Canada and Iberia have stopped flying to Havana because they cannot refuel there.
The Cuban government reported the arrival of 77,600 tourists in February, down from 178,000 in the same month a year ago—a collapse that has left entrepreneurs and business owners across the island facing existential challenges. Havana's broad avenues are empty at night, theaters are closed, bars and cafes have curtains lowered, and it is hard to find lights in the streets or Cubans making money entertaining tourists.
Economic Devastation Worse Than 1990s Crisis
Dolores de la Caridad Méndez, a 65-year-old parking attendant, said, "This is worse than the Special Period," referring to the years of economic devastation that followed the collapse of the Soviet Union, Cuba's Cold War patron, in the 1990s. The deepening crisis has led to persistent blackouts, cuts to the state-run food ration system, and severe shortages of water and medicine that have transformed daily life into an ordeal for many in the island of 10 million.
Yusleydi Blanco, a 41-year-old accountant, said, "I feel empty inside when I see my streets empty. I can't be happy when my country is sad." The sound of cars has disappeared in the wealthy El Vedado neighborhood, where the soundscape of chirping birds has reemerged. Buses now stop running at 6 p.m.
Trump Administration Tightens Pressure on Regime
In contrast with his Democratic predecessors, U.S. President Donald Trump has tightened economic sanctions against Cuba, demanding an end to political repression, a release of political prisoners and a liberalization of the island's ailing economy. In January, the U.S. captured then-President Nicolás Maduro of Venezuela, which had been Cuba's primary supplier of oil. The Trump administration severed that supply and threatened to impose tariffs on other countries that sold oil to Cuba, which went without a single shipment until a Russian tanker came in March 2026.
Following a 2016 deal between then-Presidents Barack Obama and Raúl Castro easing U.S. travel restrictions on Cuba, money flooded the island as tourism spiked. A small number of entrepreneurs opened newly allowed private businesses and bought imported modern vehicles that shared the streets with classic cars from the 1950s. In 2018, a record 4.7 million tourists arrived on the island. Hotel accommodations were so saturated that travelers without lodging were seen sleeping in a park in the small western Cuban town of Viñales that draws thousands of tourists and rock climbers to its scenic limestone cliffs.
Mass Exodus and Business Collapse
Between 2021 and 2024, approximately 1.4 million Cubans left the island—mostly young people but also accomplished musicians, actors, dancers and other entertainers who fueled Havana's nightlife. For entrepreneurs and business owners across the island, life has become difficult as tourism plummeted and their hopes of selling cheaper goods to fellow Cubans dashed against the rocks of a vastly harder economic reality.
Yeni Pérez, owner of the Old Havana cafe Entre Nos, said, "You wake up and you're ready to conquer the world, saying, 'Today I'll sell more than ever.' Then not a single client comes in and you go home devastated." She added, "The next day, you say, 'Let's give it another chance.' It's a time that's testing everyone's stamina."
Why This Matters:
Cuba's economic collapse demonstrates the consequences of authoritarian governance and centralized economic control, even as the regime blames external pressures for problems rooted in decades of failed socialist policies. The Trump administration's pressure campaign aims to force political liberalization and the release of political prisoners—objectives that prioritize human rights and democratic governance over short-term diplomatic accommodation. The mass exodus of 1.4 million Cubans between 2021 and 2024 represents a devastating brain drain and vote of no confidence in the regime's ability to provide basic economic opportunity. For American policymakers, the crisis underscores the effectiveness of targeted sanctions in pressuring authoritarian regimes while highlighting the human cost borne by ordinary Cubans living under a system that has consistently rejected market reforms and political freedom.