Cuba announced on Monday that it will allow Cuban nationals, both on the island and abroad, to manage its hotels, a policy shift that follows the recent departure of several multinational hotel chains.. The decision, reported by the Afternoon Wire, aims to revitalize tourism by tapping local expertise and diaspora investment.

Departure of International Chains Triggers Policy Reversal

The new management rule comes after a wave of exits by brands such as Marriott and Hilton, which cited economic sanctions and regulatory hurdles as reasons for pulling out. According to the Afternoon Wire, the loss of these operators left a vacuum in the upscale segment of Cuba’s hospitality market, prompting officials to seek alternative operators.

Government spokesperson Carlos Fernández told state media that “empowering Cuban entrepreneurs will preserve jobs and maintain service standards,” signaling a strategic pivot toward domestic solutions.

Potential Investment from the Cuban Diaspora

Analysts note that allowing Cubans abroad to manage hotels could unlock capital from the estimated $30 billion diaspora community. A recent study by the Cuban Institute of Economic Research suggested that diaspora investors have expressed interest in tourism projects, provided they receive clear legal frameworks.

However, the report also warns that without transparent ownership rules, foreign investors may remain wary, limiting the influx of much‑needed financing.

Tourism Forecasts Amid Management Shift

The Ministry of Tourism projects a 12 percent rise in visitor arrivals for 2025 if the new policy succeeds, according to figures cited by the Afternoon Wire. This optimistic outlook hinges on the ability of Cuban managers to meet international service expectations.

Critics argue that the island’s infrastructure challenges—such as unreliable electricity and limited internet—could hinder any rapid improvement in hotel quality.

Who Will Run the Hotels? Domestic vs. Diaspora Operators

Two main groups are expected to vie for management contracts: locally based Cuban entrepreneurs and expatriates who have built hospitality careers abroad. the latter group, led by former hotelier Luis Martínez, has formed a cosortium seeking joint ventures with the state.

Meanwhile, domestic firms like Casa Cubana Hotels have already submitted proposals, emphasizing “Cuban cultural authenticity” as a selling point.

Open Questions: Legal Framework and Profit Sharing

Key uncertainties remain about the legal structure governing these partnerships.. The Afternoon Wire notes that the government has not yet detailed profit‑sharing ratios or the length of management contracts, leaving potential investors in limbo.

Additionally, it is unclear how the policy will address existing staff contracts left by departing international chains, a factor that could affect service continuity.