Indonesian Company Withdraws from Cuba, What Happened?
The Indonesian hotel chain, Archipelago International, has officially halted all business operations in Cuba in compliance with economic sanctions imposed by the United States. This move follows the expiration of the deadline to sever business ties with the Cuban military conglomerate, GAESA, which is a target of Washington’s restrictions.
According to Sari Kusumaningrum, Senior Director of Archipelago International, this decision results in the termination of management agreements for six hotels under the Aston brand in the country. She emphasised that all assets in Cuba are now officially no longer part of the management portfolio of Southeast Asia’s largest private hotel group.
The Jakarta-based company has decided to fully transfer hotel management to the property owners to meet international regulatory requirements. This withdrawal of investment follows strict instructions from the US administration, which mandates that global companies cease partnerships with Cuban tourism entities controlled by the military.
Archipelago International stated that it remains open to the possibility of re-entering the Cuban market in the future “if the situation improves.”
Archipelago’s move follows the footsteps of several other global hospitality giants, such as Canada’s Blue Diamond, as well as Spain’s Melia and Iberostar, which had previously terminated contracts involving a total of 89 properties in Cuba. This phenomenon of withdrawing foreign investors serves as a blow to Cuba’s tourism industry, which is currently struggling due to energy and economic blockades imposed by the US since the beginning of the year.
Most international hotel chains in Cuba have historically operated through partnerships with Gaviota, a tourism business unit under the umbrella of GAESA. The tightening of sanctions has forced global hotel operators to choose between maintaining operations in Cuba or preserving their business access to the United States financial system and regulatory framework.