Foreign Businesses Are Fleeing Cuba as Its Economy Collapses

June 7, 2026 - 01:38

Mastercard and Visa have stopped processing transactions in Cuba, dealing a heavy blow to the island's already fragile economy. Hotel operators are also pulling out, and a major Canadian mining company is reconsidering its operations there. These moves signal a sharp decline in foreign confidence as Cuba struggles with severe shortages of food, medicine, and fuel.

The payment suspension by the two global card networks means Cubans and tourists will find it harder to use credit or debit cards for purchases. This move isolates the country further from the international financial system. For a nation that relies heavily on tourism and remittances, the loss of such services adds another layer of difficulty.

In the hotel sector, several international chains have ended their management contracts or scaled back operations. They cite the worsening business climate, supply chain breakdowns, and the government's inability to pay debts or maintain basic infrastructure. The departure of these operators leaves many properties in limbo, with fewer options for travelers and less revenue for the state.

Meanwhile, a Canadian mining firm active in Cuba is reviewing its future on the island. The company, which operates a nickel mine, faces rising operational costs and logistical hurdles. Nickel is one of Cuba's few valuable exports, and any reduction in output would hurt the country's ability to earn foreign currency.

These exits come as Cuba's economy contracts for a fourth straight year. The government blames U.S. sanctions, but critics point to decades of mismanagement and a lack of reforms. For ordinary Cubans, the departure of foreign businesses means fewer jobs, less investment, and a bleaker outlook. The island, once a destination for multinational companies seeking untapped markets, now looks increasingly isolated and unattractive to global capital.