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Hotels in Cuba operated by Mallorca companies having to close because of US oil blockade

US policy is strangling one of the island's last remaining avenues for economic survival - tourism

The Meliá Cohiba and the Iberostar Habana Riviera in Havana | Photo: Archive

| | Palma |

In mid-January it was reported that hotel companies operating in Cuba were on alert because of the unpredictability of the Trump administration. The US president had let it be known that Cuba should "make a deal before it's too late". Threats raised the possibility that Washington would harden its policy toward Havana and prolong the strangulation of the island's last remaining avenues for economic survival - tourism.

The threats are starting to bite, the Cuban authorities having notified airlines that they won’t be able to refuel at the island’s airports because of US steps to cut the island’s oil supply, which are designed to press Cuba into "negotiations".

Air Canada has said it is suspending flights; Canada is a key source market for Cuba's tourism industry. US airlines such as American are reported to be closely monitoring the situation. Mallorca-based Air Europa is to include a refuelling stopover in the Dominican Republic for its Madrid-Havana service.

On Friday last week, Cuba’s deputy prime minister, Oscar Pérez Oliva-Fraga, said the government would be compacting tourists into a smaller number of hotels. The government's emergency plan includes severe restrictions on public transport. The hotels are therefore having to adapt to this situation. Some hotels are closing; others have delayed opening.

Mallorca's Meliá Hotels International, with 35 establishments in Cuba, is one of the most significant players in the island's hotel sector. On Monday the company announced it was being forced into making adjustments. For the time being, this has led to the closure of three hotels.

"Given the current situation and to adapt to the current limitations in supplies and demand levels, an adjustment to hotel availability has been implemented. This is an operational decision based on occupancy levels, with the objective of optimising resources and prioritising the best possible service." Meliá added that the Cuban authorities have guaranteed sufficient fuel availability to maintain normal operations at its hotels, which also have their own supply reserves.

Other Mallorca hotel groups with a presence in Cuba are Iberostar with 18 hotels, Blau Hotels (three), Valentin Hotels (also three) and Barceló with two. Carolina Herrero of the ALA Airlines Association in Spain says there hasn't so far been significant disruption to airline operations. However, special measures are being adopted, such as Air Europa's.

Meanwhile, the president of the Aviba association of travel agencies in the Balearics, Pedro Fiol, says his members have been receiving calls from Cubans living in Mallorca who are concerned about flights, including whether they will be able to get back from Cuba.

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