Increasing Pressure, Same Old Defenders

Following a surge in U.S. sanctions announced earlier this summer, Cuban authorities took to the state television to defend their military‑run conglomerate, Grupo de Administración Empresarial S.A. (GAESA). The ministry cited the group’s long‑standing contributions to national economic and social development as evidence of its indispensable role.

GAESA, created in the 1990s, runs a wide spectrum of businesses ranging from car rentals and retail outlets to transportation services. Havana officials described it as “a pillar” that supports logistics and energy infrastructure crucial for the island’s functioning.

Hotel Chains Pull Back

The tightening of the U.S. executive order on June 3 … 8:55 PM forced several prominent hotel chains to slash or suspend operations. Spanish hotel operator Meliá announced the closure of 15 of the 34 hotels it manages on the island, equating to roughly 1,400 rooms. Canadian‑owned Royalton and Spain’s Iberostar also announced significant reductions or suspensions, setting a concerning trend for Cuba’s once‑flourishing tourism sector.

Within weeks, tourism numbers dropped 48 % in the first quarter of 2026 compared with the same period in 2025, falling from 573,000 to just 298,000 international visitors. The decline coincides with the withdrawal of airlines such as Air France and Iberia, and the cancellation of flights to Havana.

Impact on Workers

Workers in the hospitality sector reported wage cuts, layoffs, and a hurried search for new employment opportunities after Meliá’s withdrawal. As hotels closed, staff with no alternative means of income faced uncertainty and insecurity.

The Cuban government argued that GAESA’s continued operations counterbalance the loss of foreign investment and protect the island’s social livelihood. It stressed that the U.S. sanctions, by targeting a state‑owned enterprise, violated Cuba’s sovereignty and self‑reliance.

The Broader Economic Picture

At the same time, the Central Bank froze Visa and MasterCard operations in response to GAESA’s links with foreign entities. The sanction environment has also led Canadian miners and other multinational investors to rethink their projects in Cuba.

While the U.S. announced new export restrictions on oil, the Cuban government framed the move as economic warfare, maintaining that the island has a right to protect itself against external pressure.

As hotels shut and workers lose jobs, the long‑term viability of Cuba’s tourism industry remains uncertain. The government’s steadfast defense of GAESA illustrates the tension between external pressure and internal policy in shaping the nation’s economic future.