/Spain plans multi-million-euro lifeline for companies hit by Thomas Cook failure

Spain plans multi-million-euro lifeline for companies hit by Thomas Cook failure

Published on Friday, October 4, 2019

The government of Spain is planning to spend €300m (£266m) to support Spanish tourism companies affected by the collapse of Thomas Cook.

Hoteliers and suppliers in key tourism destinations, including Spain, have been hit hard by the collapse of the tour operator.

The Spanish government estimates 3,400 jobs in Spain depended directly on contracts with Thomas Cook, while it says the Canary Islands and Balearics will suffer a huge drop in visitors this winter.

On Thursday, Spain’s acting tourism minister Reyes Maroto announced a series of measures including a line of credit to be provided to affected companies, including hotels.

The plans will be put forward for approval at a cabinet meeting next week.

Maroto said the Spanish cabinet would approve a decree to make an emergency €200 million line of credit available to affected businesses and provide a stimulus for employment and other labour-related measures.

She said the Canary Islands were expected to lose 400,000 holidaymakers this winter with the Balearics seeing 300,000 fewer visitors.

Other initiatives include cutting certain tariffs for airlines flying to the Balearic and Canary Islands.

In June, Thomas Cook expressed its ‘renewed commitment’ to Spain, unveiling plans to invest €40 million in its managed own-brand hotels in its ‘number one holiday destination’.

At the time, chief executive Peter Fankhauser said: “Spain has long been a favourite with our customers – we are bringing more than 4 million holidaymakers to the country this year alone and now employ almost 2,500 people across the country and its islands.

“In a competitive market, we’re proud to be working with our valued hotel partners to upgrade and modernise our portfolio to help keep Spain at the top of the list for the next generation of holidaymakers.”

Last year, the group opened a new office in Palma, with 650 staff working in finance, in-destination and hotels divisions.

Turkey’s tourism ministry has also said it will provide support for firms hit by the Thomas Cook collapse.

See also: Liquidators pay Thomas Cook staff more than £18 million


Story Image

Original Source