Cuba is set to allow local and expatriate Cuban investors to manage hotels, a shift prompted by the withdrawal of foreign hotel chains like Melia due to U.S. sanctions. Melia's decision to close operations at 15 of its 34 hotels highlights the impact of the U.S. embargo, which has contributed to severe economic challenges, including blackouts and healthcare deficiencies. President Miguel Díaz-Canel announced this new management policy in a recent interview, stating the need for increased Cuban management in the tourism sector. The tourism industry, which peaked at 4.3 million visitors in 2019, has seen a significant decline, with only 298,000 tourists arriving in the first quarter of 2023, a 48% drop from the previous year. Díaz-Canel criticized U.S. officials for intensifying the embargo while promoting a narrative of ineffectiveness against the Cuban government, suggesting that these actions could lead to social unrest or even military intervention. The government aims to explore different business models to revitalize tourism and attract investments from Cubans abroad.