US sanctions on Cuba's tourism ministry prompt tourism shift across Caribbean

Washington has expanded economic sanctions to include Cuba's Ministry of Tourism and several state‑owned enterprises, aiming to curb foreign‑currency generation and creating compliance hurdles for investors, hotel developers and financial institutions linked to the island.

The restrictions are driving travelers and international hospitality brands away from Cuba toward nearby Caribbean markets with ready infrastructure. Destinations such as the Dominican Republic, Jamaica, Mexico, the Bahamas and Puerto Rico are accelerating hotel construction and marketing campaigns to capture redirected demand and capital.

Spanish hotel chains that operate in Cuba, including Meliá Hotels International and Barceló Hotel Group, face heightened uncertainty. Meliá has already ended its partnership with Gaviota and expects some properties could be affected, while Barceló now runs only one hotel on the island because of falling demand. The overall effect is a rapid tourism boom for alternative Caribbean gateways while Cuba’s recovery stalls.