Havana's New Luxury Hotel Sparks Debate Amid Economic Crisis

published 2 months ago

HAVANA – The imposing structure is hard to ignore. Rising 150 meters (490 feet) above Havana's colonial-era buildings, the massive rectangular edifice of concrete and glass—the city's tallest—features 542 luxury rooms offering sweeping views of the cityscape and ocean.

The Selection La Habana hotel, managed by the Spanish Iberostar chain, is not yet open but is already facing criticism, and not just for its unconventional design. Cubans are questioning the government's decision to invest millions in high-end tourism while the nation struggles with a deep economic crisis and tourism numbers hit record lows.

"That money could have been used for hospitals and schools," said Susel Borges, a 26-year-old artisan, gazing at the towering structure, locally known as the "K and 23 building" due to its location.

Located near the historic Habana Libre hotel and the popular Coppelia ice cream parlor, the new hotel is part of a government initiative to construct several luxury hotels, mostly in Havana, that continued even during the COVID-19 pandemic, despite many existing luxury hotels remaining largely vacant.

For decades, tourism has been a key driver of Cuba's economy, generating up to $3 billion annually. However, Cuban authorities reported that only 2.2 million tourists visited the island in 2024, a decrease of about 200,000 from 2023 and significantly below the 4.2 million visitors in 2019.

The government attributes the tourism decline to a combination of factors, including supply shortages, a severe energy crisis causing widespread blackouts, and staff shortages due to emigration and low wages. Furthermore, the island faces increased U.S. sanctions, including restrictions on U.S. citizen travel, a ban on cruise ships, and other measures intended to hinder Cuba's tourism sector.

"Tourism is gone," stated Julio García Campos, a driver of a gleaming red 1951 Pontiac with its original engine. "Tourists used to line up for these cars!" he recalled, remembering when the island thrived with American and European tourists after then-President Barack Obama eased sanctions.

The Selection La Habana, like all Cuban hotels, is state-owned and operated by GAESA, a conglomerate linked to the Ministry of the Revolutionary Armed Forces, often criticized for its opaque business practices. As a military-run entity, it is exempt from audits by the Comptroller General's Office and has not disclosed its investment in the 40-story hotel.

Cuban economist Pedro Monreal highlights the "incongruity" of investing in tourism when strategic sectors like agriculture receive so little funding.

“With food insecurity a concern, it's troubling that agricultural investment lags significantly behind tourism investment, remaining 11 times lower," Monreal posted on social media last year.

Architects also expressed reservations about the new hotel, noting its jarring appearance, excessive height violating urban regulations, and glass windows unsuitable for a tropical climate.

"This building is a perfect example in our classes of what not to do in bioclimatic design," said Abel Tablada, an architect and university professor, adding that it’s “unforgivable” that scarce state funds have been allocated to a building that does not benefit the city.