Cuba’s government has announced it will allow Cuban investors, both residing locally and abroad, to manage its hotels. This decision follows the withdrawal or limitation of operations by several foreign hotel chains, including Spanish company Melia.
On May 26, Melia revealed it would cease operations at 15 of the 34 hotels it manages in Cuba. This decision aligns with new U.S. sanctions and the continuation of an energy embargo, contributing to deepening economic challenges on the island.
Cuba blames the U.S. blockade for causing blackout issues, water shortages, supply problems, healthcare deficiencies, and disruptions in daily life.
Other hotel chains, such as Canadian-owned Royalton and Spain’s Iberostar, have taken steps similar to Melia, impacting Cuba’s essential tourism industry, which has declined significantly since 2018.
President Miguel Díaz-Canel disclosed the new management policy during an interview with a Spanish journalist. The interview aired Friday on the official presidential channel.
There will be hotels that we will have to operate more with Cuban management than with shared management with foreign entities. We are proposing different business models. We are open to Cubans who want to invest and manage hotels.
Díaz-Canel stated. He added that these business opportunities are also extended to Cubans residing abroad.
The U.S. President Donald Trump’s executive order from a few weeks prior expanded sanctions, mainly targeting Grupo de Administración Empresarial S.A., managed by the Cuban Revolutionary Armed Forces.
These sanctions assert the conglomerate poses a threat to U.S. national security. They freeze foreign companies’ assets, seize accounts in the U.S., and restrict travel by shareholders, investors, and employees, impacting activity in the U.S. financial system.
GAESA, created in the 1990s, encompasses various businesses, including car rentals and retail stores. The conglomerate partners with Melia in hotel management through its subsidiary, Gaviota.
Despite Melia being a crucial tourism partner for Cuba, managing around 14,000 rooms, tourism has decreased, with only 298,000 visitors arriving during the first quarter this year. This marks a 48% reduction from the same period in 2019, which saw 573,300 international visitors.
In his interview, Díaz-Canel criticized the U.S. President and Secretary of State for allegedly promoting Cuba’s inefficacy while tightening embargo measures.
He suggested these moves are designed to stifle Cuba, possibly inciting a social outbreak to justify humanitarian intervention by the U.S. Other speculations include coercive dialogue efforts or a prelude to military action.
While discussions between U.S. and Cuban representatives have taken place this year, tensions continue to escalate. Late May saw former President Raúl Castro charged in a U.S. indictment over his alleged involvement in the 1996 downing of two civilian aircraft operated by Miami exiles in Cuban waters.