Incentive for luxury tourism causes indignation in Cuba, after protests

According to data from the National Office of Statistics of Cuba (Onei), published by Swiss Info in December 2024, from January to September 2024, Cuba invested 4.6 times more in real estate (including business services, real estate and rental and restaurant industry than in agriculture, education and health.

The construction of the K Tower was entirely funded by Cuban capital, under the leadership of the GAESA Conglomerate (SA Business Administration Group), an entity controlled by the Army and the FAR (Revolutionary Armed Forces), which supervise the tourism sector. The sector generates essential resources for the island.

Gaesa is responsible for the construction of hotels, but also for the Handbook, which manages fleets of vehicles, taxis, marinas, the port of Mariel and much more – the GAESA accounts for approximately 45% of the Cuban economy.

The group is in the sights of the authorities in Washington: In late June, Donald Trump signed a memorandum that reinforces sanctions against the Cuban regime.

The document reaffirms the prohibition of US tourism to Cuba and renews the ban on direct or indirect financial transactions with entities controlled by the Cuban military, including Gaes. Torre K Hotel, or Iberostar Selection La Habana, was added to the US sanctions list on July 14, 2025.

In addition to tourism, the conglomerate also operates telecommunications, transportation, aviation, agriculture, remittances – values sent by Cubans abroad to their families.