Thomas Cook collapse costs Madeira €1.8m

Hotels exposed to tour operators bankruptcy

The Journal reports that just over a month after the end of the Thomas Cook operation, it is noticeable that its bankruptcy has become a stumbling block for the Portuguese hotel industry, especially in Madeira and the Algarve.

According to DN Lisboa, the accounting losses already exceed €20 million, but the value may be even higher, as some companies did not respond to the surveys made by the Association of Algarve Hotels and Tourism Enterprises (AHETA) and by the Madeira Chamber of Commerce and Industry (ACIF).

In the case of Madeira, the data indicate losses of €1.8 million , these figures being submitted by just two hotel groups operating in the archipelago, Jorge Veiga França, president of ACIF, told DN Lisboa.

According to a survey of the region’s hotel and tourism businesses (with optional participation), the association concluded that there were 615 Thomas Cook clients who were staying in the archipelago at the time of the bankruptcy announcement on 23 September. To the end of the year, there were 1806 reservations, corresponding to 13,000 overnight stays. It adds that there were hotel groups with a large exposure to Thomas Cook, with 60% of the operation contracted with the British group.

Veiga França stresses to the same publication that this is indeed a “very worrying” situation, and through the survey, ACIF concluded that there are €55 thousand outstanding in the three companies that responded to the survey, that is, from a grand totalof over 280 To this are added reserves worth €90,000. According to the Madeira Promotion Association, the operator handled about 60,000 people annually, with half being affected by insolvency.

In contrast, Turismo de Portugal considers that the impact of bankruptcy “has been reduced” in Madeira”, as Thomas Cook operated package tours rather than direct flights”.

2 thoughts on “Thomas Cook collapse costs Madeira €1.8m”

  1. Finnish TV reported on Tuesday evening that the Thomas Cook opertions in the Nordic Countries (under the names Tjäreborg, Spies, Ving and Globetrotter) have been bought.

    Official information on Wednesday morning.

    Minor compared to the other Thomas Cook countries such as UK and Germany but a small light in the dark for Madeiran hotels.

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  2. Now confirmed that the Nordic Thomas Cook operations (2300 employees) have been bought by a Norwegian hotel billionaire (40%) together with a Swedish investment company with 40% and a UK-based (but perhaps Norwegian given what it was stated they already own) investment company with 20%.

    I suspect the Norwegian will be more hands-on than the other two, but given the fact these the Nordic operations were profitable, he might not need to be that much hands-on.

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