Cuban Tourism Hit as Major Hotel Chains Withdraw Amid U.S. Sanctions

Cuba faces a significant setback as leading international hotel chains announce their withdrawal from operations on the island. Spanish companies Meliá and Iberostar, along with Canadian firm Blue Diamond and Southeast Asian group Archipelago International, have all scaled back or ceased their activities in Cuba.

Meliá announced an immediate halt to operations in 15 of its 34 hotels, specifically those associated with Gaviota, a tourism chain controlled by the Cuban military conglomerate Gaesa. Iberostar is relinquishing 12 of its 16 Cuban establishments, while Blue Diamond has exited all its operations. Archipelago International has also withdrawn its Aston brand from several hotels.

These departures are directly linked to recent U.S. sanctions. President Donald Trump signed an executive order on May 1, targeting individuals and companies with economic ties to Gaesa. This order set a June 5 deadline for foreign companies to end their operations with the Cuban holding.

While the U.S. sanctions are a primary driver, the hotel companies also cite deteriorating operational conditions and the island's energy crisis as contributing factors. The withdrawal of these foreign operators poses a severe challenge to Cuba's economy, which heavily relies on tourism for foreign currency earnings. The hotels themselves may continue to operate under state-run Cuban management, but the loss of international brands, reservation systems, and global marketing significantly impacts the sector's ability to attract visitors and generate revenue.