News Local Thomas Cook: immediate financial losses, longer-term vacuum

Thomas Cook: immediate financial losses, longer-term vacuum

The bankruptcy of Thomas Cook  — which accounts for 5% to 6% of  total tourist arrivals  to Cyprus — brings 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 has not paid hoteliers for July and August as well as half of September– an estimated €50m.

Another problem is the loss of airline seats which further complicates Cyprus’ connectivity problems.

It remains unclear how much will be paid to hoteliers but deputy tourism minister Savvas Perdios told reporters after chairing a crisis meeting in Nicosia on Monday morning that “there is a high possibility this money will be lost”.

Pressed to clarify he said: “I do not think that it will be easy to recoup this money.”

But he said that the stay of Thomas Cook customers currently in hotels in Cyprus will be covered by insurance.

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.

Akis Vavlitis, president of STEK, the association of large hotels, said that some hotels had hundreds of thousands outstanding while others are owed millions.

The number of tourists currently in Cyprus who came with Thomas Cook and will be repatriated is estimated at 8,000.

Harris Loizides, president of the Cyprus Hotels Association (Pasyxe) said their repatriation will take until October 6.

Perdios and Loizides said it was important to make every effort to ensure the smooth repatriation of stranded customers.

Hoteliers who have bookings for the rest of the year are left counting their losses as it is difficult to fill the gap created in such a short period.

Tourism stakeholders noted that September is the most important month for British tourists to Cyprus.

The challenge now is what happens next year.

Thomas Cook brought 250,000 to 300,000 tourists to Cyprus every year mainly from the United Kingdom, but also from Scandinavian countries.

Perdios said that they account for about 5% to 6% of arrivals, but represent a higher share of overnight stays as Thomas Cook clients tended to come for longer holidays.

Other tour operators are expected to cover much of the gap but travels experts said this could take time.

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

https://in-cyprus.com/british-travel-firm-thomas-cook-collapses-stranding-hundreds-of-thousands/

 

Top Stories

Bill Withers, soulful singer of ‘Ain’t No Sunshine,’ dead at 81

Bill Withers, a soulful singer best known for the 1970s hits "Lean on Me," "Lovely Day" and "Ain’t No Sunshine," has died at age...

Post Office mobilises Parcel24 service in fight against Covid-19

Cyprus Post is mobilising the 24-hour Parcel24 locker systems to boost efforts to contain the coronavirus by helping the public avoid visiting the Post...

Customer service by Social Insurance Services amid Covid-19 measures

The Social Insurance Services, within the framework of preventive measures to address COVID -19, inform the public that the online application / JCC Smart...

House doubles fine for Covid-19 decree, approves prison measures

The House of Representatives on Friday approved a government bill doubling the out of court fine for violating the stay at home decree from...

One more dies, 40 test positive for coronavirus

One more person has died, a man aged 64 with underlying health conditions, the Health Ministry said on Friday, and another 40 people have...

Taste

Village olive pie

Mix the yeast with the lukewarm water and put it aside for about 12-15 minutes to settle.  Sift the flour with the salt into...

Skordalia (Garlic paste)

Rinse the potatoes and place, unpeeled, in a saucepan. Cover with water, add salt and allow to simmer for 20-30 minutes until soft. Drain,...

Village salad

A must-have with every meal is a village salad. You will find it in every tavern or greek restaurant you visit in Cyprus. Make...

Courgettes with eggs

Heat the oil in a frying pan and fry the courgettes at a medium heat until they soften. Add salt and add the eggs....