Insider Economy Cyprus hoteliers hit by Thomas Cook collapse suggest rescue plan

Cyprus hoteliers hit by Thomas Cook collapse suggest rescue plan

Cyprus hoteliers hit by Thomas Cook’s bankruptcy are suggesting that the state extend the payment deadline for social security contributions and VAT. They are also asking for the various municipal taxes and charges to be deferred.

The requests are included in a letter signed jointly by the Cyprus Hoteliers Association (PASYXE) and STEK, Association of Cyprus Tourist Enterprises, which is to be sent to the relevant ministries today.

PASYXE and STEK are warning that a number of hotels are on the verge of closing, since some hotels’ bookings from Thomas Cook accounted for 70-80% of their business. Therefore, they stress in the letter, the problems for these hotels are huge.

The law stipulates that due taxes should be paid to the Tax Department, and later be refunded if proven that the company has bankrupted.

But hoteliers wonder why liquidity problems should be further aggravated since VAT will be returned to them in accordance with the law.

As for the various municipal taxes and charges – some of which have already been paid even though the customers have not come, hoteliers are demanding that these are deducted from future payments.

In the meantime, the Government has made clear it will stand by those affected badly by the collapse of the British company but compensation is out of the question.

Deputy Minister of Tourism Savvas Perdios told Active Radio that what they can and will do is discuss certain incentives to support the struggling hotel industry.

By Demetra Landou

 

Read more:

https://in-cyprus.com/hotel-prices-down-by-15/

 

 

 

 

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