U.S. Sanctions Drive Hotel Exodus From Cuba
Four foreign hotel operators are ceasing operations in Cuba as Donald Trump’s May 1 executive order is about to take effect. Spain’s Iberostar and Meliá, Canada’s Blue Diamond and Indonesia's Archipelago International have all announced plans to leave or reduce operations in Cuba ahead of the June 5 deadline.
Executive Order 14404 expanded sanctions against Cuba and authorized penalties against foreign companies doing business with key sectors of the Cuban economy. GAESA, the military-run conglomerate heavily invested in Cuba’s tourism industry, was specifically targeted.
On May 7, the Treasury Dept. gave foreign companies until June 5 to wind down transactions involving GAESA before facing potential sanctions. The announcements by all three hotel operators came just days before that deadline.
The move is the latest escalation in Washington’s economic warfare on Cuba . Tourism remains one of Cuba’s main sources of foreign exchange and supports hundreds of thousands of jobs across the country.