Cuba tourism crisis deepens as major hotel chains withdraw

Spanish chain Meliá announced the immediate closure of operations in 15 of its 34 Cuban hotels, many linked to the militarily‑controlled tourism group Gaesa. Iberostar has cut its presence to just four hotels from sixteen, while Canadian Blue Diamond has left the Cuban market entirely. Archipelago International also removed its Aston brand from several Havana properties. The exits coincide with a U.S. executive order imposing sanctions on firms doing business with Gaesa, giving companies a deadline to sever ties.

Tourist arrivals have plummeted, with only 328,608 visitors recorded between January and April 2026 – a 55.8% drop from the same period a year earlier. Persistent power outages, fuel shortages and the suspension of air routes have further eroded the destination’s appeal, threatening the viability of state‑run hotels that depend on foreign management for branding and reservation systems. The combined effect threatens Cuba’s broader economy, as tourism is a key revenue source.

Economists warn that the loss of these multinational operators could accelerate a restructuring of Cuba’s role in the global market, especially as financial links are strained by U.S. sanctions and the recent suspension of Visa and Mastercard payments.