Thomas Cook bankruptcy hits tourism industry
The closure of 500 hotels in Spain which depended directly on the British tour operator that has just closed is expected
This Monday the British tour operator Thomas Cook declared bankruptcy. As a consequence, an average of 600,000 people have been stranded worldwide due to suspension of flights from the group’s airline.
One of the most affected countries immediately is Spain, where 500 hotels that depended on the company must close. The losses are substantial and make the tourism industry falter beyond the borders of the European country.
With the purpose of addressing the effects of this event for commerce, industry and users, the Spanish government, through the Interministerial Commission, met on Thursday to write a Decree Law that will collect 13 compensatory measures.
The approval of a package of 300 million euros is planned next October 11 to rescue those affected. From this sum, a credit line of 200 million will be established and a reduction in air fares with the Canary Islands and Balearic Islands.
At the end of Thursday’s meeting, Reyes Maroto – Minister of Industry, Commerce and Tourism of Spain – said: “This is a crash plan, which is expected to soften the impact of the collapse of the tour operator in employment, which has affected 3,400 workers directly.”
The aid plan is aimed at rescuing the hotel sector, which is under pressure to restore hotel connectivity, particularly in the Canary Islands and the Balearic Islands, where losses of 700,000 travelers are estimated with pre-established holiday plans to these regions.
Juan Molas, president of the Spanish Confederation of Hotels and Tourist Accommodations, also spoke about the effect of this bankruptcy in the 15,000 affiliated establishments and indicated that at least 800 million euros will be required to face the situation.
Spanish authorities also seek to protect the employment sector, where the bankruptcy effect of the oldest tour operator in the industry has left a high percentage of workers unemployed.
The closure of the company, which mobilized more than 19 million people annually and managed five airlines, has generated a passenger mobilization crisis theit countries of origin must resolve.
M.Pino
