Cuba tourism sector collapses as major Spanish hotel chains withdraw

U.S. sanctions and a new oil embargo imposed by the Trump administration have driven the exit of the four largest foreign hotel operators in Cuba within a single week. Spanish groups Meliá and Iberostar announced the immediate closure of dozens of resorts, while Canadian Blue Diamond and Indonesia’s Archipiego also halted operations. Tourist arrivals fell 55.8% in the first four months of 2026, with only 328,608 international visitors, and hotel occupancy dropped to 18.9% in 2025, far below the 4.6 million tourists recorded in 2018. The departures have left many properties under state control, and the future of the vacant facilities remains uncertain.

Spanish analysts note that the crisis “shows companies with ties to Cuba need a viable market, which no longer exists.” The tourism sector, once the island’s second‑largest source of foreign exchange, now contributes a fraction of its former $2.8 billion annual revenue, with occupancy at just 23% in 2024 and only 1.8 million tourists recorded for 2025. The collapse underscores the deepening economic strain on Cuba and the unraveling of long‑standing Spanish investment in its hotel industry.