People ride a motorcycle in front of a hotel in Havana in early May. The U.S. oil embargo against Cuba has brought the island's crucial tourism industry to a standstill, with suspended flights, closed hotels and plummeting visitor numbers. Photo by Ernesto Mastrascusa/EPA
June 1 (UPI) -- Cuba's economy entered June facing another major setback after the departure of Iberostar and Blue Diamond, two of the largest foreign hotel operators on the island.
After a U.S. Treasury Department ultimatum setting Friday as the deadline for foreign companies to sever ties with the Cuban military-controlled conglomerate GAESA, Canadian hotel operator Blue Diamond Resorts announced its immediate withdrawal from Cuba, while Spanish chain Iberostar removed its brand and ceased operations at at least 12 of its flagship hotels.
President Donald Trump's administration issued an executive order May 1 directing sanctions against "those responsible for repression in Cuba and threats to the national security and foreign policy of the United States."
The measure required foreign individuals and entities, including financial institutions, to wind down "transactions involving GAESA or any entity in which GAESA owns, directly or indirectly, a 50% or greater interest."
