Cuba's tourism sector hit as foreign firms withdraw under US sanctions

An executive order issued by the United States requires foreign companies linked to Cuba’s military conglomerate GAESA to halt operations by the June 5 deadline. In response, several multinational hotel groups, including Spain’s Iberostar and Meliá as well as Canada’s Blue Diamond Resorts, have withdrawn from dozens of properties on the island. Shipping companies such as France’s CMA CGM and Germany’s Hapag‑Lloyd have suspended freight bookings, while airlines Iberia, World2Fly and Air Europa have paused flights to Havana. Payment networks Visa and Mastercard are also set to be disabled from June 6. The departures exacerbate a sharp tourism decline, with visitor numbers falling 55.8% to under 300,000 in 2025, and an energy crisis that leaves many areas with only a few hours of electricity daily. Cuban officials claim GAESA’s services are vital to the economy, while U.S. lawmakers argue the conglomerate enriches a small elite and fuels poverty. The sanctions are deepening Cuba’s already severe economic distress.