Particle.news
Download on the App Store
6 ARTICLES
·
2w ago

Foreign Firms Pull Hotels, Ships and Flights From Cuba After U.S. Targets GAESA

The exits threaten to collapse Cuba's tourism and transport systems and deepen an already acute economic crisis.

Spain's Melia hotel and resort chain logo is on display at Hotel Melia Bilbao, in Bilbao, Spain, May 8, 2024. REUTERS/Vincent West/File Photo
Workers repair the sign at the Grand Aston Hotel in Havana, Wednesday, June 3, 2026. (AP Photo/Ramon Espinosa)
People are reflected in a window of the Central Palace of Computing and Electronics bearing images of late Cuban President Fidel Castro and his brother, former President Raul Castro, who was indicted in the United States in a move that marks an escalation in Washington's pressure campaign against the Caribbean island's communist government, in Havana, Cuba May 20, 2026. REUTERS/Norlys Perez/File Photo
Foreign company departures are wreaking havoc on Cuba's already devastated economy

Overview

  • Several international hotel groups, including Blue Diamond, Iberostar, Archipelago (Aston) and Meliá, have reduced or ended management of properties tied to GAESA, with new withdrawals reported on Tuesday.
  • The U.S. issued an expanded executive order on May 1 and OFAC guidance that warns foreign companies they face penalties if they keep commercial ties to GAESA, and Washington set a short compliance deadline this Friday.
  • Major shippers CMA CGM and Hapag-Lloyd have suspended bookings to Cuba and multiple airlines, including Rossiya and Air Canada, have cut or halted service as jet-fuel shortages and falling demand worsen transport disruptions.
  • Cuba's tourism sector is collapsing, with reported international arrivals down about 55–56% in early 2026, and workers face immediate job losses, fewer guests and reduced hotel operations on top of ongoing fuel shortages.
  • Havana has publicly defended GAESA and officials signal many properties will be reallocated to the GAESA-linked firm Gaviota, a move that could keep hotels open but will shift revenue and management into military-controlled hands while deepening economic strain.