Spanish hotel group Meliá has become another company to scale back its operations in Cuba following the imposition of new U.S. sanctions and the continuation of an oil embargo. Meliá is set to close operations at 15 out of the 34 hotels it oversees in Cuba, impacting the country’s struggling tourism sector. The decision, made in response to external factors affecting the business, was disclosed shortly after the U.S. expanded sanctions against the island, particularly targeting Grupo de Administración Empresarial S.A. (GAESA), a conglomerate tied to the Cuban Revolutionary Armed Forces.
GAESA, involved in various sectors including car rentals and retail, is a key partner of Meliá through its subsidiary, Gaviota. The recent executive order by the U.S. freezes the assets of foreign entities linked to GAESA, severely limiting their activities in the U.S. financial system. Meliá, a significant player in Cuba’s tourism industry with around 14,000 rooms before the cutback, is a crucial partner for the country’s tourism sector, heavily impacted by the decline in international visitors and energy shortages exacerbated by the U.S. embargo.
The reduction in operations by Meliá and other hotel chains like Royalton and Iberostar is a major setback for Cuba, which has witnessed a notable decrease in tourist arrivals. The struggling tourism industry, compounded by energy and supply issues, has left many local workers concerned about their livelihoods. The ongoing geopolitical tensions between the U.S. and Cuba, including recent indictments against Cuban officials, further add to the uncertainty surrounding the country’s economic prospects.