The collapse of Thomas Cooks opened a big wound in Greece’ tourism sector. According to a survey conducted by the Greek Chamber of Hotels the financial damaged is worth 315 million euros for 2019. And it will reach over one billion euros in 2020.
The survey was conducted by the Institute of Tourism Research and Forecasting (ITEP), carried out on behalf of the Hotel Chamber of Greece, between September 24-27, 2019.
It collected data from 1,193 hotels that collaborated with the bankrupt travel group.
Analytically:
– Out of 9,917 hotels in the country, 1,193 hotels are partnering with the Thomas Cook Group in 2019, representing 12% of the total hotel potential.
– 48% of partnered hotels with Thomas Cook are in 1, 2 and 3 star categories.
– Lower-class hotels have a greater reliance on Thomas Cook for their turnover.
Rate of revenues by TC in 2019 according to hotel category
The total demands by hotels from Thomas Cook, together with estimated turnover losses resulting from its bankruptcy in 2019, are approximately €190 million. The amount rises to €221 million, if the rest of the accommodation industry is taken into account.
Estimation of total financial demands and revenue losses for hotels. 1. column “before the bankruptcy”, 2. column “after the bankruptcy”, 3. column “total for 2019”
Taking into account other accommodation and airline arrivals with Thomas Cook, the total losses of turnover in the accommodation sector is estimated at € 315 million.
Total losses for 2020 amount to € 516 million for the hotel industry and € 929 million for the wider accommodation sector.
Taking into account the tourist multiplier (2.5), the total estimated loss for the Greek economy in 2020 will reach 2.5 billion euros.
It is the lower-class hotels that are particularly exposed to revenue losses from the Thomas Cook’s bankruptcy.
During the interview, the President of the Hellenic Chamber of Hotels, Alexandros Vassilikos, pointed out that the Hellenic Hotel Chamber is already working out a package of measures to support employment, the liquidity of the affected businesses and to support the sustainability of the hotels.
He also emphasized the need to create a large alliance with the government, the National Tourism Office, the Regional Governments and the municipalities and other bodies and businesses in order to give special emphasis to the promotion and advertising of the country as well as to the realization of alternative synergies.
“The prolongation of the tourist season and the attraction of visitors of categories with higher income are targets that are now becoming urgent for the tourism economy in our country,” Vassilikos said.
The survey in here in Greek
