Hotel withdrawal in Cuba: Dominican Republic, the big winner
Tourism in Cuba is currently undergoing a total reconfiguration, with Executive Order 14404 issued by the United States delivering a lethal blow to hotel companies, which have had to withdraw from the island due to tightening sanctions by Washington.
These sanctions against entities linked to strategic Cuban sectors open the door to freezing the assets of companies that maintain relations with organizations designated by the Trump administration.
With its exit, Meliá abandoned management of 15 hotels in Cuba. At the same time, Iberostar withdrew from 12 establishments jointly managed with the state conglomerate Gaesa, marking one of the largest business restructurings in the Caribbean in recent years.
As this travel publication previously reported, the Canadian company Blue Diamond announced its withdrawal from Cuba on June 1st. It was one of the few companies that had expanded its presence on the island in recent years, operating around fifteen properties under the Royalton, Memories, Starfish, Mystique, and Resonance brands, primarily in Havana, Varadero, and Cayo Largo del Sur. (Hotel companies with a long history in the Dominican Republic leave Gaviota in Cuba.)
Meliá justified its withdrawal by citing a combination of geopolitical, legal, and economic factors affecting the legal and operational security of its businesses. The company admitted that most of the affected hotels were already closed or operating with significant limitations due to power outages, decreased demand, and supply problems, according to Diario Libre.
The decline is not limited to the hotel sector. Iberia suspended its flights to Havana, World2Fly canceled operations, and other European and Canadian companies have reduced or abandoned their activities on the island.
While Cuba faces an unprecedented crisis, the Dominican Republic is experiencing an opposite reality.
The country has established itself as the leading tourist destination in the Caribbean, with record visitor numbers and a sustained expansion strategy supported by airport infrastructure, air connectivity, macroeconomic stability, and legal security.
In that context, Meliá and Iberostar have not only maintained their Dominican operations but have also made them fundamental pillars of their regional strategies.
Meliá currently operates one of the largest hotel portfolios in the country, with a presence in Punta Cana, Bávaro, Miches, and Puerto Plata. The company has developed some of the most iconic resorts on the East Coast and continues to expand its offering of luxury and premium experiences.
Iberostar, for its part, maintains a strong presence in Punta Cana, Playa Bavaro, Puerto Plata, and Bayahibe, where it has promoted a strategy based on sustainability, quality of service, and high-value-added tourism.
