By Ayose Naranjo
HAVANA, July 24 (Reuters) – Spanish hotel group Melia said it has ceased all operations of its 34 hotels in Cuba on Friday amid the hardening of U.S. sanctions and the island’s growing economic crisis.
Melia cited operational, legal, and financial difficulties as the determining factors for its departure from the island, where it has had a major presence since 1990. The hotels were run through its Portuguese subsidiary Ilha Bela Gestao E Turismo.
Friday’s complete withdrawal from Cuba follows Melia’s announcement last month that it was ceasing operations of 15 of its 34 hotels.
Its departure follows recent announcements from privately-owned Iberostar and Barceló, marking the end of decades of involvement in the island’s tourism market by the three main Spanish hotel chains.
Tourism, a key engine of Cuba’s economy, has slumped this year as the island faces a widening economic crisis amid an oil blockade imposed by the U.S. at the beginning of 2026. Between January and April, international visitor arrivals fell to 328,608, a 56% drop from the same period in 2025.
“There is no tourism flow, there is no income, and no economy. The impact is huge,” said Teresa Carrillo, a 62-year-old resident of Havana.
Pressure from Washington increased earlier this month when the U.S. imposed sanctions on Cuba’s Ministry of Tourism.
The hotel closures come amid a wider exodus of international companies, including financial and logistics businesses, evaluating the increased risk of operating in Cuba after Washington’s tightened sanctions.
Visa and Mastercard halted several operations, while key airlines such as Air France, Turkish Airlines, Iberia, and World2Fly suspended flights to the island.
(Reporting by Ayose Naranjo in Havana; Editing by Sonali Paul)
