The bankruptcy of Thomas Cook — which accounts for 7% to 8% of total tourist arrivals to Cyprus — brings immediate economic losses and creates yet another challenge for the island’s all-important tourism sector.
Immediate repercussions from the collapse of the world’s oldest travel firm includes financial losses as the company appears not to have paid hoteliers for the two most important months of the season – July and August.
Also pending is payment for Thomas Cook customers currently in hotels in Cyprus.
A number of hotels in Cyprus operate under the Thomas Cook brand name and have agreements with the travel firm. As a result as many as 70% to 80% of customers at these hotels have booked through Thomas Cook.
The number of tourists currently in Cyprus who came with Thomas Cook are estimated at a ‘few tens of thousands’ according to Harris Loizides, president of the Cyprus Hotels Association (Pasyxe).
Their repatriation will take until October 6. Some hoteliers host these guests until they can be repatriated.
Loizides estimated the sums due for July and August at about €50m, while the cost may increase until all Thomas Cook customers are repatriated from Cyprus.
The challenge now is what happens next year.
Thomas Cook brought 250,000 to 300,000 tourists to Cyprus every year (7% to 8%) mainly from the United Kingdom, but also from Scandinavian countries.
Other tour operators are expected to cover much of the gap.
Britain is Cyprus’ biggest tourism market accounting for about one third of total arrivals and the closure of Thomas Cook only adds to deep uncertainty related to Brexit.
Read more
British travel firm Thomas Cook collapses, stranding hundreds of thousands
Read more → https://in-cyprus.com/thomas-cook-immediate-financial-losses-longer-term-vacuum/
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