The largest sales market for Thomas Cook travel, a tough Winter is waiting. Tourists sit firmly, Hotels fear for Survival. The future prospects of the industry are bleak.
The Bust was not totally unexpected, but it hits Spain with great force. The country had to cope with from 2008 to 2013, the worst financial crisis in its history, is now facing a similar scenario in the vacation industry. With currently almost 15 per cent share of the tourism industry in the gross domestic product (GDP) could have the Bankruptcy of the British company with a long tradition for the country, with serious consequences, which would also affect the credit system.
In recent years, the importance of Hotels and holiday rental companies even further increased. In 2016, the proportion of the tourism industry, according to data from Statista, only a little more than eleven per cent of the GDP. The industry Association World Travel & Tourism Council (WTTC) in London went so far that in Spain, the revenue from this sector, currently at around 178 billion to 224 billion euros in the year 2028 would rise.
Help for the Stranded
According to the tourism Association Exeltur the bankruptcy of Thomas Cook will mean a direct loss of 200 million euros for the Spanish holiday sector. But the long-foreseeable consequences of time. The unemployment was lowered from formerly 19 to 14 percent, as threaten to be lost again thousands of Jobs in Spain, especially the Balearic and Canary Islands.
Car rental companies (such as here at the airport of Mallorca) are among the industries that highly depend on tourism.
Thomas Cook wanted to bring in this summer, four million tourists to Spain. 90,000 are affected directly and have to fear for your return flight. The Spanish tourism Minister, Reyes Maroto has convened a crisis Committee to control the chaotic situation at the airports and in the Hotels better, and also to develop a long-term plan for the industry.
As long as Spain keeps the economy yet?
So far, the Spanish economy of Brexitängsten, trade disputes and the national political remained dramas largely spared, and grew up for 2015. The current government under Pedro Sánchez foresees for this year an increase of 2.2 percent. In addition, the rating Agency S&P has just upgraded their seal of quality for state long-term bonds of Spain from ‘A-‘ to ‘A’, with stable Outlook.
The black Monday with the help of Thomas Cook-Broke, seems to make a line by this bill. According to the Mallorca-based German company lawyer, Tim Wirth, a very hot autumn waiting for Spain: “The question is whether the economy will decouple in the face of these negative messages can of the current political developments”.
With new elections in November in the neck, one still blocked the budget and the upcoming release of the judgments for the past two years, the imprisoned Catalan independence supporters, the insecurity of the people should rise about the future of their own country.
Coveted Assets In Bankruptcy
Meanwhile, some competitors are rubbing the hands, to be afraid of others carried away. The Spanish bankruptcy of Thomas Cook in Spain, including 50 Hotels, is likely to be interested in the view of one industry expert, especially in the country already committed to US Investor Blackstone.
Only in the past year, the British had established in spite of their difficult financial situation, the Thomas Cook Hotel Investments in Spain. The Spanish Economist Gaietà García from the EAE Business School in Madrid, believes that this ill-considered Actions was the main problem of Thomas Cook: “you are grown too quickly”. He now hopes that other tour operators who know better, will take this course in Spain and, therefore, the impact is limited can be.
Balearic Islands and Canary Islands are suffering the most
But the Domino effect of the Bust is already so large, that the President of the Mallorcan hoteliers Federation FEHM, Maria Frontera, bat already to state aid. The consequences of Bankruptcy for Mallorca were “of an unprecedented Dimension,” said Frontera. Other to compare the Moment with the industry downturn as a result of the panic due to the terrorist attacks on September 11. September in New York.
The Canary Islands, the location of the holiday industry looks at the Moment the hottest, because the islanders almost exclusively to the Thomas Cook holiday makers have left. To Broke added to that, this year, the arrival of international tourists to the Canary Islands in July to eight per cent, had fallen, which meant for Hotels and Restaurants, a million fewer holidaymakers.
Domino effect for travel agencies and Hotels
Not only the Hoteliers in the Canary Islands and Balearic Islands fear for their future, but also the 9500 companies that work in Spain in travel planning, including Viajes El Corte Inglés, Halcón Viajes and B, the travel Brand (Grupo Barceló). Industry experts believe that the listed reservation carrying Central Amadeus, headquartered in Madrid, one of the biggest victims will be the Broke, because they Herald the end of organised leave, along with the climate to pressure the entire sector in question would make.
In the last few years, 5000 of travel agencies were closed, 12,000 people lost their Job. The collapse of Thomas Cook is hitting Spain particularly hard, because it depends very much on the foreign tourism and lives in Spain, 75 per cent of service revenue. So far, foreign tourists spent in Spain in the year an average of 77 billion euros for excursions, car rental, shopping or restaurant visits.
Also, the Spanish banks are indirectly affected by the Bankruptcy. The largest domestic Bank Caixabank gets from the British 51 million euros. Loans to the sector are likely to currently be used heavily under the microscope. The Barcelona-based former savings Bank has funded the Thomas Cook buying of Hotels in Spain. “The Spanish holiday homes market is likely to be of the Bankrupt, is not so severely affected,” says business consultant Iñigo Arraiza. On the contrary, Individually-organised tours via the Internet on Hotels and travel offices, is likely to be popular, which is why, possibly, in the case of vacation rentals, even with a lift could be calculated.