Narayan AmmachchiThe pillars of Cuba’s tourism industry — the country’s largest source of foreign income — are beginning to crack under a new wave of US sanctions introduced by President Donald Trump.
What began as financial pressure has now spread directly to the hospitality sector. On June 6, Visa and Mastercard transactions in Cuba were disrupted after foreign payment processors severed ties with Fincimex, the financial arm of the military-linked Grupo de Administración Empresarial S.A. (GAESA) conglomerate, a key target of US sanctions.
The move effectively cut off one of the island’s principal card-payment channels at a time when Cuba is already grappling with a severe shortage of foreign currency.
The impact is rippling across the tourism ecosystem. US Secretary of State Marco Rubio has defended the measures, arguing that tourism revenues primarily benefit a small group of elites rather than the broader Cuban population.
International hotel operators are already pulling back. Spanish chain Meliá Hotels International said it had suspended operations at 15 of its 34 Cuban properties, citing circumstances beyond its control. Other major operators, including Iberostar, Blue Diamond Resorts, Royalton Resorts, and Archipelago International, have either exited the market or scaled back their presence.
Collectively, the withdrawals are estimated to affect around 89 hotel properties, eroding international management expertise, global branding, and booking networks that are critical to attracting foreign visitors.
The timing could hardly be worse. Cuba’s tourism sector is already experiencing a dramatic collapse in demand. The country welcomed only 328,600 international visitors during the first four months of 2026, a steep 56% decline from the same period a year earlier. In April alone, arrivals plunged to just 30,551 tourists, underscoring the speed at which confidence in Cuba as a travel destination is evaporating.
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