THE CYPRUS Tourism Organisation (CTO) has reassured hotels and travel agents in Cyprus that Thomas Cook’s recent financial difficulties will not necessarily lead to a suspension of the holiday company’s activities on the island.
“There is no need to panic, one or two bad financial years do not necessarily mean that the company will collapse” said CTO chairman, Alekos Orountiotis yesterday.
Orountiotis said that Cyprus tourism could accommodate the loss of Thomas Cook, albeit with some losses, but stressed that the chances of the company collapsing were slim.
Thomas Cook is running on a loss, with annual deficits of approximately €300 million in each of the past two years.
Orountiotis said that while the CTO was concerned with the situation, he was confident that the company would not close down.
Approximately half a million tourists visit Cyprus each year through Thomas Cook services, mostly from Britain, Germany and the Scandinavian countries.
The holiday company is responsible for the influx of approximately 250,000 British tourists, while the winter visits from the Scandinavian countries are regarded a crucial contribution to the island’s tourism.
Travel agents and hotel representatives expressed their concern about the company’s situation, since it is the largest British holiday company operating in Cyprus.
“We do not even want to contemplate the scenario of the company’s collapse” said Lakis Avraamides of the Ayia Napa-Protaras Regional Tourism Board.
Avraamides said that over 85 per cent of Scandinavian tourists visit the Famagusta district, and said that the absence of this tourist influx could hurt the region’s economy significantly.
Despite widespread concern, most tourist bodies in Cyprus are calm about the company’s future.
“If Thomas Cook leaves the Cyprus market, the hit on Larnaca will be substantial but thankfully not fatal” said Antonis Papakyriakou of the Larnaca Tourism Board.
Orountiotis said that the company’s financial difficulties were known, and to some extent expected, since political turmoil in Egypt and Tunisia caused much damage to organised tours in those countries.
He said that the company’s summer operations on the island had been concluded and that not much movement was expected since it was Cyprus’ low tourist season.
“There is no need for knee-jerk actions, we are monitoring the situation and will get organised if need be” said Orountiotis.
Thomas Cooke, Europe’s second largest tour operator, revealed earlier in the week that it was encountering liquidity difficulties and was in talks with its major lenders to secure a second loan of approximately €100 million in a month to deal with its seasonal low period
Cyprus Mail
