Cuba Defends GAESA Amid U.S. Sanctions

Cuba on Tuesday defended GAESA, a military-run conglomerate long targeted by U.S. sanctions, stating it has contributed to the nation's economic and social development despite increased pressure from the Trump administration.

The U.S. accuses GAESA of hoarding profits from Cuba's most valuable industries for the benefit of the military and Cuban elite. This accusation comes amid a broader effort by the Trump administration to use an oil blockade and tightened sanctions to force a change in Cuba's government, as reported by Reuters. The Cuban government denied corruption claims in a statement on GAESA, accusing the U.S. of seeking to confuse public opinion.

The Trump executive order issued May 1 has prompted several hotel companies operating in Cuba to distance themselves from GAESA-linked hotels due to threats of sanctions. As reported by Reuters, Blue Diamond Resorts and Iberostar have severed ties with GAESA-linked hotels, while Archipelago International ended its operations under the Aston brand, according to UPI. These decisions follow a Trump executive order that vastly broadened U.S. sanctions on commerce with Cuba.

The open-ended U.S. executive order has also prompted shipping companies like CMA CGM and Hapag-Lloyd to suspend bookings to and from Cuba, jeopardizing as much as 60% of Cuba's shipping traffic by volume. Several airlines have suspended service to Cuba amid a jet fuel shortage and plummeting tourism.

The Cuban government has rejected U.S. accusations against GAESA, arguing that it has been a key tool in sustaining the national economy since the Special Period crisis of the 1990s. President Miguel Díaz-Canel published a public defense of GAESA on Tuesday, stating that it is not a product of secrecy or elite enrichment but rather a means to resist U.S. aggression.

Spanish hotel operator Meliá Hotels International announced Wednesday it will stop managing 15 hotels linked to Cuba's military-run conglomerate GAESA, expanding the withdrawal of foreign operators from the island just days before new U.S. sanctions take effect. This makes Meliá the fourth international hotel company to reduce or end operations in Cuba in less than a week, following similar moves by Blue Diamond, Iberostar and Archipelago International under its Aston brand.

Meliá informed Spain's National Securities Market Commission that its Portuguese subsidiary, Ilha Bela, will immediately terminate management, marketing and brand-use services at hotels associated with entities controlled by GAESA. The company stated the economic impact would be limited as many of the affected properties were already closed or only partially open.

In February, Meliá confirmed the temporary closure of several properties due to fuel shortages, transportation problems affecting workers, and a sustained decline in tourism demand. At that time, the company operated 35 hotels on the island but said it was not considering leaving the Cuban market entirely.

The latest move comes two days before the deadline set by President Donald Trump's administration for foreign companies to sever commercial ties with Cuba's military conglomerate or face potential economic sanctions. GAESA controls a significant portion of the Cuban economy and dominates large segments of the tourism sector through companies such as Gaviota Tourism Group.

The withdrawals coincide with a deep crisis in Cuba's tourism sector, which has seen a 55.8% decline in international visitors between January and April 2026 compared to the same period a year earlier. At least 11 airlines have suspended or reduced flights to Cuba this year due to the jet fuel shortage.

The withdrawal of Meliá and Iberostar has also raised concerns in Spain, with Jaume Bauzà, tourism minister for the Balearic Islands regional government, stating that authorities are closely monitoring the situation. He offered institutional support to the affected companies, hoping for a quick resolution.