Photo by:  Gary Raynaldo /  Diplomatic Times.    The Spain-owned Meliá Cohiba hotel across from  Malecón sea in Havana, Cuba.

-DIPLOMATIC TIMES  STAFF

Spanish hotel chain Meliá will cease operations of all it hotels in Cuba this Friday amid escalating U.S. sanctions and an oil blockade on the caribbean island. Meliá operates 34 hotels on the island. The company cited ongoing operational difficulties that have worsened under U.S. sanctions as reason for the decision to withdraw from the Cuba market. Cuba is in an economic crisis that has crippled its tourist industry. The number of foreign tourists visiting Cuba is down nearly 60 percent from last year. There have been chronic fuel shortages and widespread power blackouts. The Spanish Iberostar chain also announced last month it is no longer managing any hotels in Cuba.  The country has also lost about half of its international flights. Numerous airlines have suspended flights to Cuba due to a lack of guaranteed jet fuel supply. 

In addition, Meliá faced severe U.S. sanctions under the Helms-Burton Act, over the past years, resulting  in U.S. visa bans on its executives and multiple lawsuits over properties confiscated during the Cuban Revolution. Meliá operated in Cuba for 36 years.