By Bejay Browne.
As Europe is left reeling after the collapse of Thomas Cook, Paphos hoteliers look to be the worst hit on the island, with some reliant on the now defunct company for up to eighty per cent of their bookings.
“We have lost a lot of money and slowly Thomas Cook guests are leaving,” a spokesman from Leonardo Cypria Bay, a Sentido Hotel, told the Paphos Post.
The hotel was reliant on 75% occupancy from Thomas Cook
Thomas Cook last week confirmed that all the UK companies in its group had ceased trading, including Thomas Cook Airlines.
“As a result, we are sorry to inform you that all holidays and flights provided by these companies have been cancelled and are no longer operating. All Thomas Cook’s retail shops have also closed.”
The ‘most horrifying’ situation is now being faced by the affected hoteliers across the island, Euripides Loizides, the secretary of the Paphos hoteliers association said.
“The reality is that if bank installments are not met, after 90 days banks can move in.”
Around six or seven hotels in Paphos are thought to be the worst hit.
“The new legislation in place means that this could be a reality. Hotels have to ensure that they continue to operate, pay staff and suppliers, pay debts and address the damage. It’s no joke, banks don’t take kindly to empty hotels. The damage is the days after the company’s collapse, what to do with the rooms,” he said.
As tour companies usually book rooms a year ahead, there are real concerns for future holiday packages. Accommodation that has already been booked with the bankrupt tour operator for next year is now up in the air.
The industry is going to experience a ‘big shock’ and hoteliers are owed a lot of money, he said.
“There is a loss of between 45 and 50 million euros outstanding to the hoteliers so you can imagine that this will go from their cash flow, it will be hard to survive and then there is the bigger picture,” said Loizides.
He noted that as Thomas Cook is the second largest tour operator in Cyprus it carries a huge volume of passengers from the UK, and that its collapse is drastic.
As with all other hotels, Loizides has upcoming bookings and customers will either have to find different flights to Cyprus or get a refund.
“We are hoping that a big percentage will still come but ripples from the collapse of Thomas Cook will be negatively felt in Cyprus for years to come.”
Thomas Cook provided seat capacity of 456,000 for 2019 on its flights to and from Larnaca and Paphos airports to the UK, Scandinavian countries and Germany.
The ministry of tourism has estimated that Cyprus will lose around 250,000 visitors and €188m in revenue.
