Meliá Hotel Chain Exits Cuba, Crippling Tourism Amid U.S. Sanctions

The Spanish hotel chain Meliá is pulling out of Cuba entirely, a catastrophic hit to the island's tourism sector, already reeling from U.S. sanctions and an energy blockade.

The company announced its decision will take effect on Friday, citing “significant operational, legal, economic and financial difficulties” that have plagued its operations in Cuba.

Once a powerhouse for the Cuban economy, tourism has been decimated. Meliá's exit follows new U.S. sanctions imposed on July 13, which blacklisted Cuba’s Ministry of Tourism, the chain's partner for over a dozen hotels on the island.

Previously, Meliá had suspended management of 15 hotels linked to a tourism agency controlled by GAESA, a military-business conglomerate in Cuba that faced U.S. sanctions in May. Now, the chain has completely severed ties with the country.

Meliá once boasted ownership of 34 five-star hotels across Cuba, with prime locations in Havana and popular tourist spots like Varadero and the main keys. The chain held significant symbolic value following the resurgence of tourism in Cuba after the Soviet Union's collapse over 35 years ago.

U.S. sanctions against companies operating in Cuba include asset freezes and account seizures within the U.S., effectively barring them from the U.S. financial market. Shareholders, investors, and employees face travel bans as well.

Pressure on Cuba intensified after the capture of Venezuela's then-President Nicolás Maduro in January, with the U.S. aiming for regime change in Cuba and a shift in its political and economic framework. An energy embargo has worsened an already dire situation.

The fallout includes daily blackouts exceeding 20 hours, severe medicine shortages crippling healthcare, a collapsed water supply, and paralyzed transportation systems.

Meliá’s exit underscores the profound effects of U.S. President Donald Trump’s policies, which are “methodically and systematically closing every source of foreign currency for the Cuban government,” according to Paolo Spadoni, an associate professor at Augusta University in Georgia.

Tourism has plummeted as major chains like Iberostar and Royalton withdraw, alongside airlines such as World2Fly, Air France, and Iberia canceling flights to Cuba.

This year, tourism arrivals have dropped by 48% compared to 2015, totaling just 298,000 visitors.