Financial services companies, hotel operators, and even a leading Canadian mining company are all either withdrawing or rethinking their presence in Cuba.
Mastercard and Visa are suspending transactions by non-American visitors to the country, according to Cuba’s central bank, but the biggest impact to the moving industry will be the decision by Spanish hotel chains Iberostar and Meliá to give up management of at least a dozen hotels in the country. Canadian hotel operator Royalton Hotels & Resorts has also stopped operations following a fall in tourism.
For Toronto-headquartered mining company Sherritt International, the future is also uncertain. Last month, the important foreign investor repatriated its staff and said it was suspending operations. For over 30 years, Sherritt has mined nickel and cobalt from the Moa mine in eastern Cuba.
The actions follow an executive order by President Trump targeting Cuba’s military, intelligence, and state security services, obliging foreign investors to choose between doing business tied to the country’s military or risking sanctions.
IAM Member Impact: Although Cuba is not a large traffic lane, the exit of foreign businesses will impact moving and relocation activity to the country. Over 100 countries have embassy staff in Cuba.
Source: The Wall Street Journal