Cuba’s government announced plans to offer hotel management opportunities to Cuban investors, both local and abroad, following the retreat of several foreign hotel operators. The move comes after Spanish hotel chain Melia, among others, reduced or ceased operations on the island.
Meliá stated on May 26 that operations would stop at 15 out of the 34 hotels it manages in Cuba, citing new U.S. sanctions and ongoing energy embargoes as contributors to the island’s economic woes. These sanctions aggravated Cuba’s problems, blamed by the government on the U.S. blockade, including persistent blackouts, water shortages, supply chain difficulties, health care deficiencies, and disruption to everyday life.
The decision by Melia resonates with similar actions taken by hotel chains such as Royalton from Canada and Spain’s Iberostar, impacting Cuba’s tourism industry substantially. Cuban tourism peaked in 2018 but has faced significant declines since then. In a recent interview, President Miguel Díaz-Canel acknowledged the new policy, emphasizing the shift towards more Cuban-managed hotels and inviting Cuban investors to participate.
“There will be hotels that we will have to manage more with Cuban entities than with foreign partners,” Díaz-Canel remarked. “We are presenting various business models and welcoming investment from Cubans interested in hotel management.” He mentioned these opportunities being extended to Cuban citizens residing overseas as well.
The partial withdrawal of Melia happened weeks after U.S. President Donald Trump expanded sanctions against the island. Targeting the Grupo de Administración Empresarial S.A. (GAESA), a business group run by the Cuban Revolutionary Armed Forces, the sanctions were justified as threats to U.S. national security.
The sanctions also involved freezing foreign assets, seizing U.S.-based accounts, and barring travel for affiliated personnel, effectively cutting off access to the U.S. financial sector. GAESA, established in the 1990s, owns a variety of businesses, including car rentals and retail outlets. One of its subsidiaries, Gaviota, partners with Melia in managing hotels.
Data highlights the tourism decline in Cuba, with only 298,000 tourists arriving in the first quarter of this year, a sharp drop from 573,300 visitors during the same timeframe the previous year. President Díaz-Canel criticized the U.S. administration for sanction tactics, suggesting motives behind such moves could range from an attempt to instigate social unrest providing grounds for intervention, to strategies for coercive discourse, or even preparations for potential military action.
Strained relations remain between U.S. and Cuban officials, exacerbated by fresh charges against former Cuban leader Raúl Castro in late May related to the 1996 aircraft incident involving Miami exiles.
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