Spanish hotel chain Meliá has joined a list of companies reducing their operations in Cuba. This follows new U.S. sanctions and the continuation of an oil embargo. Meliá plans to stop managing 15 of its 34 hotels on the island. This decision impacts Cuba’s tourism sector, which has significantly declined since its peak in 2018.
According to Cubadebate, Meliá’s decision is influenced by both corporate responsibility and external factors affecting the operation and security of its establishments. This announcement came shortly after U.S. President Donald Trump expanded sanctions targeting Grupo de Administración Empresarial S.A. (GAESA). The U.S. views GAESA, a Cuban business entity, as a security threat.
The sanctions include freezing foreign company assets and restricting travel for those connected to these firms, thus limiting their U.S. financial activity. GAESA, a major player in Cuban business, partners with Meliá through its subsidiary, Gaviota, in hotel management.
“Meliá is a crucial partner for Cuba’s tourism, managing around 14,000 rooms before this partial pullout. Spanish and Canadian investors dominate Cuba’s hotel sector,” said Lee Schlenker from the Quincy Institute.
Some Meliá hotels, including locations in Varadero and Cayo Santa María, were already closed due to energy issues and decreased demand. The Cuban government attributes these problems to the U.S. energy blockade, which causes blackouts and supply shortages.
People working in Cuba’s tourism sector express concern about Meliá’s decision. Erich López, a driver, noted the impact on family incomes. Carlos Luis Carbonel, a parking attendant, acknowledged the negative effect on tourism workers.
Other major hotel chains like Royalton and Iberostar have also limited operations in recent weeks. The number of tourists visiting Cuba significantly dropped earlier this year, with only 298,000 arrivals in the first quarter compared to 573,300 in the same period the previous year.
In Old Havana, the sign of Royalton Paseo del Prado hotel was removed. The Iberostar Selection remains closed despite its modern design and plans to open in 2025. Airlines such as World2Fly and Iberia have canceled flights to and from Cuba.
On another front, Visa and MasterCard usage in Cuba will be suspended. This results from the termination of foreign relations with FINCIMEX S.A., affiliated with GAESA. Additionally, Sherritt International Corp., based in Canada, is negotiating the sale of its mining interests in Cuba.
Tensions between the U.S. and Cuba have risen despite earlier talks. Notably, a U.S. indictment charges former President Raúl Castro for involvement in a 1996 incident concerning civilian aircraft. These developments add to the strained relations between the two countries.