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Sanctions, blackouts, and the exit of major hotel chains increase pressure on Cuba, which tries to sustain a sector relevant for foreign exchange entry while experiencing a drop in visitors, reduction in flights, and loss of international confidence amid an economic crisis.
Cuba has faced new pressure on tourism after major foreign hotel chains reduced or ended operations on the island, amid the tightening of U.S. sanctions against companies with economic ties to Gaesa, a military conglomerate that controls a significant part of Cuban hospitality.
The contraction involves groups like Meliá, Iberostar, Blue Diamond, and Archipelago International, occurring in a sector that lost more than half of its visitors at the beginning of 2026, and it increases the difficulties of an economy dependent on foreign exchange entry.
The Spanish company Meliá announced on Wednesday (03) the immediate withdrawal of management, marketing, and brand use in 15 of the 34 hotels it operated in Cuba, all linked to Gaviota, the tourism arm of Gaesa.
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According to information released by international agencies, the decision was communicated in a scenario of increased legal, economic, and geopolitical pressure for foreign companies maintaining contracts in the country.
Shortly before, Iberostar had also ended the management of 12 hotels associated with Gaviota, maintaining only units without direct ties to the Cuban military conglomerate.
Also leaving operations or brands in the country were the Canadian Blue Diamond and Archipelago International, which withdrew the Aston brand from Cuban enterprises, including hotels located in areas relevant to the island’s tourism.
U.S. sanctions pressure hospitality in Cuba
The movement of the chains gained momentum after U.S. President Donald Trump signed on May 1, 2026, an executive order aimed at expanding sanctions against individuals and companies linked to Gaesa.
Under the new rules, the transition period ended on June 5, leading international groups to review contracts before the full application of the measures outlined by Washington.
The American government accuses Gaesa of concentrating strategic revenues for the benefit of military sectors and the Cuban elite, while Havana claims that the conglomerate plays a significant economic role in light of the commercial embargo imposed by the United States for more than six decades.
In this scenario, the legal cost of operating in Cuba has increased, and foreign companies have begun to evaluate more cautiously the maintenance of ties with assets associated with the Cuban military group.
The networks did not attribute all movements solely to American sanctions, as they also cited or faced factors related to daily operations on the island.
Among the elements pointed out by experts and industry sources are fuel shortages, energy instability, deterioration of basic services, and a decline in international demand, factors that affect hotel contracts and reduce operational predictability.
Cuban tourism model depends on foreign operators
The Cuban tourism model differs from that adopted in many competing destinations because a large part of the hotels belongs to state-owned companies, but management is usually handed over to foreign operators through specific contracts.
In these agreements, international networks offer brand, reservation systems, sales channels, promotion abroad, and relationships with tour operators, elements used to reach travelers from Europe, Canada, and other traditional markets.
Economist Pavel Vidal explained to BBC News Mundo that the hotels remain under the control of Gaesa, but management is contractually granted to international companies.
Ricardo Torres, also interviewed by the BBC, stated that this arrangement defines the operators’ share in profits and creates a commercial bridge between Cuba and the main visitor source markets.
The departure of foreign brands does not necessarily mean the automatic closure of hotels, as the units can continue under Cuban state administration.
Even so, according to experts interviewed by the BBC, the ventures lose commercial networks, agreements with tour operators, global reservation systems, and the reputation for quality associated with groups known to international travelers.
Over decades, Cuba built a broad hotel structure to support the expansion of international tourism, a sector treated by the government as one of the main sources of foreign exchange.
Sector estimates pointed to about 77.8 thousand rooms in 2022, a number close to the 80 thousand mentioned in the debate about the country’s installed capacity.
Drop in tourists deepens economic crisis
The withdrawal of networks occurs when Cuban tourism is already experiencing a sharp decline in official data released for early 2026.
Between January and April 2026, Cuba received 328,608 international tourists, a decrease of 55.8% compared to the same period of the previous year, according to data from the National Office of Statistics and Information of Cuba, Onei, cited by specialized media.
This result shows the difficulty of recovery after the Covid-19 pandemic, when the island lost a significant part of the international visitor flow.
Before 2020, Cuba used to receive between 4 million and 5 million visitors per year, but the combination of economic crisis, blackouts, fuel shortages, sanctions, and reduced flights limited the sector’s recovery.
Important markets also lost strength in the first months of 2026, with a reduction in the number of visitors from countries traditionally relevant to the island.
Canada, historically the main source of tourists to Cuba, reduced the number of visitors, while routes from Spain, Russia, and Canada itself were affected by lower demand and difficulties related to aircraft supply.
In the main tourist hubs, the lower presence of foreigners affects hotels, restaurants, transportation, guides, commerce, private homes, and local suppliers.
The contraction also compromises the influx of hard currency, an important resource for a country facing high inflation, import restrictions, and a drop in the supply of basic goods.
Visitor confidence becomes an obstacle for Cuba
The loss of international operators adds a confidence problem to the Cuban tourism sector, according to economists consulted by BBC News Mundo.
For some travelers, the presence of a known network serves as a reference for a minimum standard of service, predictability in bookings, and responsiveness in case of operational failures.
Without this commercial backing, the decision to travel to Cuba may undergo more careful evaluation, especially among tourists who rely on international packages and service networks outside the island.
Ricardo Torres told BBC News Mundo that the few visitors still willing to travel to the island might “think twice.”
According to him, the foreign company offered an additional guarantee of quality in hotel operations, an element that gained more weight with the deterioration of basic services.
The maintenance of facilities appears as another challenge for the sector, because hotels require energy, repairs, equipment replacement, cleaning, food, transportation, and trained teams.
These costs become more difficult to sustain in a scenario of low occupancy, public resource restrictions, and reduced foreign currency inflow into the country.
In Ricardo Torres’ assessment, if the situation prolongs, the facilities may deteriorate due to a lack of resources for maintenance.
With a lower presence of global operators, reduced flights, and a decrease in foreign flow, Cuban hospitality becomes more dependent on Cuban-American visitors, diplomats, residents with external income, and lower-income domestic tourism.
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