Spanish hotel chain Meliá is scaling back its operations in Cuba, joining other companies reducing their presence on the island amid new U.S. sanctions and a longstanding oil embargo. According to Cubadebate, Meliá will cease operations at 15 out of the 34 hotels it manages in Cuba. This move is a significant blow to Cuba’s tourism industry, which has seen a sharp decline since its peak in 2018.
The decision, announced on May 26, follows an executive order from U.S. President Donald Trump, expanding sanctions that particularly target the Cuban military-operated business conglomerate, Grupo de Administración Empresarial S.A. (GAESA). These sanctions freeze foreign companies’ U.S. assets, seize their American accounts, and restrict travel for shareholders and employees, effectively cutting them off from the U.S. financial system.
GAESA, established in the 1990s, controls diverse businesses, including car rentals and retail. Meliá partners with GAESA through its subsidiary, Gaviota, for hotel management. Despite requests, Meliá has not commented on the situation. Currently, Meliá helps manage about 14,000 rooms in Cuba, highlighting its importance in the tourism sector.
Lee Schlenker, from the Quincy Institute’s Global South program, notes that Spanish and Canadian firms are Cuba’s primary hotel investors. Challenges like reduced international tourism, fuel shortages, and general decline due to the pandemic are influencing companies to reevaluate their operations in Cuba, impacting not just GAESA but also countless Cuban workers.
Several resorts abandoned by Meliá, such as those in Varadero and Cayo Santa María, were already idle due to energy issues and reduced demand, states Cubadebate. The Cuban government attributes prolonged blackouts, water and supply shortages, and healthcare problems to the U.S. energy blockade.
“It’s going to affect us, our families, and everyone involved in tourism. Our pay and income depend on this,” said Erich López, a driver of a classic car in Havana.
Carlos Luis Carbonel, a parking attendant, also expressed concern: “This is terrible for everyone: tour guides, parking attendants and hotel staff.” Other hotel chains, like Royalton and Iberostar, have recently limited or suspended their operations in Cuba.
Tourism reached 4.3 million visitors in 2019, but the first quarter of this year saw a 48% drop compared to 2025 figures, with only 298,000 tourists visiting. Airlines such as World2Fly and Iberia have canceled flights to and from Cuba.
The Central Bank of Cuba announced the suspension of Visa and MasterCard operations on the island due to terminated relationships between foreign entities and FINCIMEX S.A., linked to GAESA. Meanwhile, Canadian firm Sherritt International Corp. plans to sell its stake in a Cuban mining venture.
In January, Trump threatened tariffs on countries providing oil to Cuba, aiming to pressure political change. U.S. and Cuban officials met earlier this year, but tensions continue, especially after former President Raúl Castro was charged in the U.S. for his alleged role in a 1996 airplane incident.