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business19h ago
Spanish hotel chain Meliá to shutter hotels in Cuba in latest blow to island's tourism sector
- Meliá will close 15 of its 34 Cuba hotels, trimming its footprint on the island after new U.S. sanctions.
- The closures are linked to sanctions targeting GAESA and related Cuban entities, reducing hotel operations.
- Meliá's decision follows similar moves by Royalton and Iberostar as Cuba's tourism sector faces demand declines.
- Cuba’s tourism economy has plummeted since its 2019 peak, with 2026 first-quarter arrivals down sharply from last year.
- GAESA is a Cuban military-backed group implicated in the sanctions regime affecting Cuban hotel operations.
- Industry observers warn the closures threaten thousands of Cuban tourism jobs and supply chain in hotels.
- The sanctions include restrictions on U.S. financial access and assets for entities tied to GAESA.
- Other chains, including Royalton and Iberostar, have limited operations in Cuba recently.
- The U.S. sanctions are part of a broader effort to pressure Cuba’s leadership amid energy and financial constraints.
- The Cuban government cites energy blockades and blackouts as factors behind operating declines in tourism.
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