Story perspectives

Cuba Allows Foreign-Run Hotels as Tourist Arrivals Plummet 48%

6/6/2026

Summary

Díaz-Canel Allows

Cuba announced President Miguel Díaz-Canel will let Cuban investors abroad run hotels managed by foreign chains after U.S. President Donald Trump's sanctions order targeting Grupo de Administración Empresarial S.A. (GAESA).
Spanish chain Meliá will shut 15 of its 34 Cuban hotels, joining Canadian-owned Royalton and Spain’s Iberostar in limiting operations.
Tourist arrivals fell 48% in Q1 2026 to 298,000 visitors, down from 573,300 in the same period in 2025.

Summary

UN Condemns Sanctions

The United Nations General Assembly has repeatedly condemned U.S. extraterritorial sanctions on Cuba as violating international law.
Legal experts argue the sanctions breach trade freedom by penalizing third-country companies, prompting shipping firms and airlines to restrict operations with Cuba.
U.S. officials cite historic documents that describe a goal of creating scarcity and social unrest to pressure political change in Cuba.

Summary

Cuban Bank Suspends

The Cuban Bank suspended Visa and MasterCard operations after ending ties with FINCIMEX S.A., a GAESA affiliate.
Eleven airlines have cut back service to Cuba, cancelling 1,700 flights, with Iberia suspending its Madrid-Havana route until 24 October.
Meliá reported first-quarter occupancy of 34.1% and a 68% profit decline after halving its hotel capacity.
Blue Diamond will exit Cuban operations, ending management of 62 properties, while the Iberostar Selection “Tower K” remains shut.

History

Historical Context

The 1996 Helms-Burton Act expanded the U.S. embargo by allowing lawsuits and fines against foreign firms that trade with Cuba, a policy the EU condemned but the U.S. renewed through waivers until 2019. In 2026 the Treasury applied similar extraterritorial sanctions to GAESA, forcing Iberia, Royalton and Iberostar to scale back Cuban hotels, as tourism fell 48% to 298,000 visitors that year.

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Díaz-Canel Allows

Cuba announced President Miguel Díaz-Canel will let Cuban investors abroad run hotels managed by foreign chains after U.S. President Donald Trump's sanctions order targeting Grupo de Administración Empresarial S.A. (GAESA).
Spanish chain Meliá will shut 15 of its 34 Cuban hotels, joining Canadian-owned Royalton and Spain’s Iberostar in limiting operations.
Tourist arrivals fell 48% in Q1 2026 to 298,000 visitors, down from 573,300 in the same period in 2025.

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