Thomas Cook's bankruptcy may cause the immediate closure of 500 hotels

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

One hundred hotels in the area depended exclusively on the tour operator. Hoteliers ask for a crash plan to mitigate the impact on the Canary Islands.

Thomas Cook Group's bankruptcy has dealt a major blow to the hotel sector. The first official estimates amount to 200 million the amount of debt pending collection since the suspension of payments. “It will be much more. Only the sum of eight chains rubs the 100 million. I think it will far exceed that figure," emphasizes Juan Molas, President of the Spanish Confederation of Hotels and Tourist Accommodations, which represents 15,000 establishments.

In an interview with Cinco Días, Molas emphasizes that the real problem will come from October 6, the last day of the repatriation of tourists trapped by the closure of Thomas Cook and the last day in which insurance will cover expenses for travelers displaced by the British tour operator. "There are 500 hotels that are going to close immediately due to the bankruptcy of Thomas Cook and the situation can get worse if the Executive does not take action immediately," he warns. Of those 500 hotels, 100 of them depended exclusively on the British tour operator, while in the other 400, the volume of customers ranged from 30% to 70%. 

Molas puts as an example of that impact an establishment in Fuerteventura, which had launched in February a reform of 20 million euros, in which he had built an exclusive club for Thomas Cook. "Now it has 700 open rooms that will be empty on October 7 and will have to fire its 200 workers because it has no room to look for alternatives." Of those 500 hotels affected by the bankruptcy of Thomas Cook, the most damaged tourist destinations are the Canary Islands and the Balearic Islands, with 40% of the hotel plant affected, followed by the Costa del Sol, with 20%, and Catalonia and the Valencian Community, with 10%.

To alleviate this situation, the employer has designed a shock plan that will be presented to the Minister of Industry, Commerce and Tourism, Reyes Maroto, at the next Spanish Tourism Council, scheduled for October 7, with a priority: solve Air connectivity with the Canary Islands. "The high season begins and Thomas Cook provided 30% of the air capacity and hiring of beds from the United Kingdom, Germany, Scandinavia, Holland or Belgium." The hotel employer's calculations estimate the cost of the loss of Thomas Cook in 1.3 million airplane seats, with two specially damaged airports: Tenerife, with about 350,000 seats and Lanzarote, with 220,000. “The Government should call the CEO of Ryanair, Michael O'Leary, to reconsider the closure of the bases of Gran Canaria, Tenerife South and Lanzarote from January 8. It is essential that the first European low cost continue betting on Spain," emphasizes Molas.

To attract other airlines that have a fleet without working in the coming months, the President of Cehat proposes other alternative measures, such as a reduction in Aena's air fares. “We are going to remind the Government that Aena had a profit of 1,000 million euros, thanks in large part to tourism. Although its President believes that a rate reduction would have a limited impact, we believe that any gesture would be beneficial. You have to encourage airlines to increase their capacity or put planes to the Canary Islands immediately,” says Molas, who emphasizes that this reduction should be extended to other affected airports, such as Girona, Reus, Menorca, Mallorca, Ibiza, Alicante, Almeria and Malaga until the end of summer 2020.

The hoteliers also propose bonuses in the Social Security contributions of the workers in the coming months, white credits to companies such as in Portugal as well as deferrals of VAT payments. "In October, companies have to make the liquidation of July, August and September and all Thomas Cook bills are unpaid, since they paid 60 and 80 days late," says Molas, who confesses that the subsequent payment of the same It should also be conditioned to your charge.

This article was written and published in Spanish and has been translated into English via Google Translate. Click here to read the original article.

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