Cuba faces wave of hotel exits as US bans Visa, Mastercard

The United States implemented Executive Order 14400 on May 1, targeting Cuban officials, members of the Castro family, the Ministry of Revolutionary Armed Forces and entities linked to the military‑run conglomerate GAESA. The order forces foreign firms to cease dealings with GAESA‑controlled companies or risk asset seizure, prompting the suspension of Visa and Mastercard transactions in Cuba.

As a result, major hotel operators are pulling out: Spain’s Meliá announced it will relinquish management of 15 hotels, Iberostar is exiting 12 properties, and Blue Diamond has ended its Cuban operations. Asian group Archipiélago International is reviewing its presence, while Canadian mining firm Sherritt has already left the island. Shipping companies CMA CGM and Hapag‑Lloyd have temporarily halted cargo bookings. The combined departure of these companies threatens Cuba’s tourism sector, foreign‑exchange earnings and the availability of essential supplies, deepening the island’s economic strain.

Cuban officials describe the measures as a new escalation in the U.S. economic pressure campaign, warning of heightened shortages of fuel, water and medicine, while analysts warn the rapid loss of foreign investment could push Cuba toward a near‑collapse of its already fragile economy.