More Disruption for Cuba’s Tourism Economy as Iberostar Pulls Out

Cuba’s tourism economy continues to crumble under U.S. pressure as Spanish giant Iberostar followed Canadian Royalton-Blue Diamond Resorts in ending operations in the beleaguered nation. 

The U.S. government has increased sanctions against the starving island, requiring companies to cease working with businesses run by the Grupo de Administración Empresarial S.A.(GAESA), a business conglomerate operated by the Cuban Revolutionary Armed Forces. According to the Associated Press, GAESA commands nearly 40 percent of Cuba’s gross domestic product. The conglomerate reaches into nearly every sector of the Cuban economy, which makes any connection to the island a potential liability under the new U.S. rules. 

To avoid the sanctions, Iberostar has severed its ties with Gaviota, the hotel chain controlled by the Cuban military’s Grupo de Administración Empresarial S.A. (Gaesa), and ceased managing the 12 hotels associated with that entity, reports the Havana Times. The company will maintain its presence in Cuba through properties whose state partners belong to other tourism groups not linked to the military conglomerate, including Cubanacan and Gran Caribe. 

Media outlets in Cuba confirmed that several hotels previously managed by Iberostar and owned by GAESA remain operational, though they are now under Gaviota’s direct administration. 

According to Argentinian tourism operator Sudameria, the move serves as “part of a process of adapting to the international regulatory environment and with the purpose of preserving the quality, compliance and management standards that distinguish the company.” 

The 12 affected hotels and resorts are:

• Iberostar Grand Packard
• Iberostar Selection Ensenachos
• Iberostar Selection Holguín
• Iberostar Coral Holguín
• Iberostar Selection Emerald
• Iberostar Emerald Coral
• Iberostar Coral Ensenachos
• Iberostar Selection Havana
• Iberostar Origin Bella Vista Varadero
• Iberostar Origin Laguna Azul
• Iberostar Origin Playa Pilar
• Iberostar Origin Playa Alameda
  
  

Related: Blue Diamond Resorts Pulls Out of Cuba

 

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