Cuba Joins Brazil, Argentina, And Mexico In Cracking Down On Airbnb As The Impact Of Travel Disruption And How Latin American Countries Are Changing The Vacation Rental Game With Shutdowns In 2025: Here Is What You Need To Know

Published on October 29, 2025

The emergence of Airbnb and different short-term rental platforms has been a game-changer for nan recreation and tourism manufacture worldwide. In caller years, Latin American cities person witnessed important changes successful edifice visitant numbers owed to nan expanding fame of platforms for illustration Airbnb, which connection travelers an replacement to accepted edifice accommodations. These platforms are not only reshaping nan measurement group recreation but besides posing a increasing situation to nan accepted hospitality sector. In 2024, respective Latin American cities knowledgeable a important diminution successful edifice occupancy, revealing nan far-reaching effect of short-term rentals connected nan region’s tourism economy.

Cuba is now joining Brazil, Argentina, and Mexico successful cracking down connected Airbnb arsenic a consequence to nan plunging recreation disruption caused by nan accelerated maturation of short-term rental platforms. These countries are actively addressing nan disruption successful their tourism sectors, pinch caller regulations and shutdowns planned for 2025. The emergence of Airbnb has drastically changed nan vacation rental game, challenging accepted hotel industries and section communities. As these nations instrumentality shutdowns and restrictions connected short-term rentals, they are reshaping nan early of tourism successful Latin America and seeking to equilibrium nan needs of some tourists and local residents.

The Rise of Airbnb successful Latin America

Airbnb has disrupted accepted accommodation models, offering affordable, personalized, and unique lodging options to millions of travelers. In 2024, Airbnb continues to spot important maturation successful Latin America, pinch cities for illustration Mexico City, Buenos Aires, and Havana facing expanding title from nan platform. The expertise to book a section location aliases flat has fixed galore travelers an acquisition that hotels cannot ever replicate.

Airbnb’s entreaty lies successful its wide assortment of properties, from budget-friendly rooms to luxurious estates, catering to some section and world tourists. This diverseness makes it an charismatic action for travelers looking for a much authentic and immersive experience. As a result, traditional hotels successful cardinal Latin American cities person been grappling pinch decreased occupancy rates, arsenic travelers opt for nan elasticity and personalized acquisition that Airbnb offers.

Cities Experiencing a Decline successful Hotel Occupancy

In 2024, respective cities successful Latin America saw a noticeable decline successful edifice visitant numbers, pinch Airbnb playing a important domiciled successful this trend. Let’s analyse nan astir impacted cities and nan factors driving this change.

Buenos Aires, Argentina: A Struggling Hotel Market

Buenos Aires, 1 of South America’s astir celebrated tourer destinations, has witnessed a melodramatic driblet successful edifice occupancy rates owed to nan emergence of short-term rentals. According to caller data, nan city’s edifice occupancy complaint fell by 16.2% successful nan first half of 2024 compared to nan aforesaid play successful 2023. The Cuyo region, celebrated pinch some local and international visitors, besides saw a 22.6% decline successful occupancy successful October 2024 compared to nan erstwhile year. This inclination is mostly attributed to nan accrued readiness of affordable Airbnb options that cater to a divers scope of travelers.

The effect of Airbnb connected Buenos Aires’ edifice manufacture is portion of a broader inclination seen crossed Argentina, wherever nan economical climate, including ostentation and rate devaluation, has caused galore travelers to activity much cost-effective alternatives to hotels. With Airbnb offering properties that are often much affordable and equipped pinch local experiences, it’s nary astonishment that galore visitors are choosing nan level complete accepted hotels. For much connected this decline, publication nan afloat article connected FT.com.

Havana, Cuba: The Struggles of Traditional Hotels

Havana, Cuba’s capital, has agelong been a apical destination for travelers seeking cultural immersion and a measurement backmost successful time. However, successful 2024, nan metropolis faced a crisp diminution successful tourism and hotel occupancy. Despite nan opening of caller luxury hotels for illustration nan Iberostar Selection La Habana, which boasts 542 rooms, nan city’s wide tourism numbers fell dramatically. In 2019, Cuba saw 4.2 million visitors, but by 2024, this number dropped to only 2.2 million. This diminution is partially owed to nan country’s ongoing economic challenges, power crises, and nan continued effect of U.S. sanctions.

In summation to these economical and governmental factors, nan fame of Airbnb successful Havana has made it much difficult for accepted hotels to support their marketplace share. Airbnb offers travelers nan opportunity to enactment successful private homes, often pinch unsocial amenities and much localized experiences, making it a viable replacement to accepted edifice stays. For further specifications connected Cuba’s tourism struggles, sojourn AP News.

Mexico: A Shift Towards Short-Term Rentals

Mexico, a state known for its vibrant civilization and stunning tourer destinations, has besides seen shifts successful nan hospitality marketplace owed to nan maturation of Airbnb. While wide tourism successful Mexico has remained comparatively robust, nan emergence of Airbnb has led to important increases successful short-term rental bookings. Specifically, betwixt March 2024 and March 2025, Canadian tourists accrued their bookings connected Airbnb successful Mexico by 27%. This surge successful request for short-term rentals signals a imaginable diminution successful traditional edifice stays, peculiarly successful popular cities for illustration Mexico City, Cancún, and Los Cabos.

Despite nan summation successful Airbnb usage, hotels successful Mexico are attempting to stay competitory by offering luxury experiences, all-inclusive packages, and exclusive amenities to pull visitors who still for illustration accepted accommodations. However, pinch platforms for illustration Airbnb offering a wide assortment of affordable and localized stays, nan edifice manufacture faces a difficult challenge. For much insights into Mexico’s tourism trends, cheque retired FT.com.

The Impact of Airbnb connected Hotel Markets successful Latin America

The effects of Airbnb connected edifice markets successful Latin America are clear. The edifice manufacture successful nan region is grappling pinch decreased occupancy rates, driven successful ample portion by nan increasing fame of short-term rentals. According to Airbtics, nan mean edifice occupancy complaint successful awesome Latin American cities dropped by 6.1% complete a two-year period. This diminution is not uniform, however, arsenic immoderate cities person fared amended than others. For example, cities for illustration São Paulo and Rio de Janeiro person seen much unchangeable edifice occupancy, arsenic they connection unsocial attractions that proceed to tie visitors contempt nan emergence of Airbnb.

In summation to nan diminution successful occupancy rates, hotels are besides facing accrued unit to lower prices aliases connection much competitive packages successful consequence to nan affordable options provided by Airbnb. While immoderate hotels person responded by integrating technology to heighten impermanent experiences and amended work quality, others person struggled to accommodate to nan shifting demands of travelers.

What Does nan Future Hold for nan Hospitality Industry?

As nan fame of Airbnb and akin platforms continues to grow, nan traditional edifice industry successful Latin America must accommodate to caller realities. The challenges posed by short-term rentals are improbable to disappear, but they tin service arsenic a catalyst for alteration and invention wrong nan industry. Here are a fewer imaginable outcomes for nan future:

Urban vs. Rural Dynamics

The maturation of short-term rentals has not been constricted to municipality centers. In fact, galore smaller cities and agrarian areas person besides seen a emergence successful Airbnb properties. This displacement is peculiarly noticeable successful places that were erstwhile overlooked by visitors but person go much accessible done platforms for illustration Airbnb. While accepted hotels whitethorn struggle successful these areas, short-term rentals connection an opportunity for agrarian tourism to thrive. As request for authentic, agrarian experiences increases, short-term rentals will proceed to play a important domiciled successful shaping nan early of tourism successful these regions.

Regulatory Responses

As nan title betwixt short-term rentals and accepted hotels intensifies, governments successful immoderate Latin American countries are opening to see aliases instrumentality regulations to power nan maturation of platforms for illustration Airbnb. These regulations purpose to onslaught a equilibrium betwixt fostering tourism and ensuring that local communities are not negatively impacted by nan emergence of short-term rentals. In immoderate cities, laws are being put successful spot to limit nan number of short-term rental properties disposable successful definite neighborhoods aliases to require spot owners to registry their listings pinch section authorities.

Adaptation of Hotels to New Realities

To stay competitory successful nan evolving market, accepted hotels must innovate. This could impact offering unique experiences, specified arsenic cultural immersions, exclusive tours, and personalized services that Airbnb cannot easy replicate. Additionally, hotels whitethorn request to leverage technology to amended ratio and heighten nan impermanent experience, specified arsenic done mobile check-ins, contactless services, and AI-powered concierge services. The early of nan edifice manufacture successful Latin America whitethorn dangle connected its expertise to merge these elements and find ways to compete pinch nan elasticity and affordability of short-term rentals.