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Increasingly, more foreign companies are concluding that the risks of operating in Cuba outweigh the benefits, in what economists are describing as a turning point for the island's economy, according to a comprehensive report from the Wall Street Journal.
The combination of an unprecedented economic collapse and the increasing pressure from the Trump administration has accelerated a corporate exodus that includes everything from Spanish hotel chains to Canadian mining companies and international payment processors.
Mastercard and Visa have suspended transactions for foreign visitors who are not U.S. citizens as of Saturday, according to the Central Bank of Cuba. U.S. citizens have already been prohibited from using their cards on the island.
The Spanish hotel chains Meliá and Iberostar announced the abandonment of management for 15 and 12 hotels in Cuba, respectively. Meliá stated that most of these had already been closed "due to energy challenges and a decline in demand."
Iberostar indicated that its departure is "part of an effort to adapt to the international regulatory environment." The Canadian company Royalton Hotels & Resorts also ceased operations due to the collapse of tourism.
The exit of Spanish companies from the Cuban market comes after decades of investment on the island, where they operated under management contracts with entities linked to the military conglomerate GAESA, which, according to Washington, controls at least 40% of the Cuban economy.
Especially significant is the situation of Sherritt International, the Canadian mining company that has been regarded for decades as the largest individual foreign investor in Cuba.
The company suspended operations and repatriated personnel in May, after extracting tens of thousands of tons of nickel and cobalt per year from the Moa mine in the eastern part of the island for over thirty years.
Sherritt stated that the "mere issuance" of Trump's executive order had created conditions that materially altered its ability to operate, even though the company was not formally designated.
Their stock fell by more than 50%, and their chief financial officer, external auditor, and several board members resigned.
The company subsequently signed a non-binding preliminary agreement to sell approximately 55% of its Cuban operation to Gillon Capital, a firm linked to Ray Washburne, a former advisor to Trump.
The immediate trigger was the executive order signed by Trump in May, which targeted GAESA directly. Secretary of State Marco Rubio described the conglomerate as "the heart of the kleptocratic communist system of Cuba."
The order forced foreign investors to choose between continuing to do business with entities linked to the Cuban Armed Forces or risking secondary sanctions.
"The Trump administration is focused like a laser on military, intelligence, and state security services, and on any relationships they have with foreign companies. That is where the power lies," said Ricardo Herrero, executive director of the Cuba Study Group.
The underlying economic context is devastating. Cuba lost its supply of subsidized Venezuelan oil following the capture of Nicolás Maduro in January, which led to blackouts of up to 25 hours a day.
Tourism plummeted by 55.8% between January and April compared to the same period in 2025, with only 328,608 visitors. The Cuban peso is trading at around 620 per dollar in the informal market.
"It can be called a double blow," said Ted Henken, a Cuba expert at Baruch College. "It has been a gradual but consistent strangulation by the Trump administration."
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