The survival of hundreds of Greek businesses in the hospitality industry is at stake after tour operator TUI earlier this month issued a series of contract amendments that require hotel owners to wait until March 2021 for three-quarters of the money due for accommodation booked this year, the Financial Times reported on Thursday.
According to the report, payments, which in some cases amount to several hundred thousand euros, are usually carried out two months after departure dates.
Asked by the newspaper, Greek Tourism Minister Haris Theocharis said the government was “monitoring the situation closely.”
Tourism employs about 700,000 people in Greece and accounts for around 20% of the country’s economic output.
Surely the greek government could intervene to apply pressure on TUI to make at least a 50% interim payment of monies owed? It seems unbelievable that TUI, who must be aware of the economic problems for traders throughout Greece as elsewhere, can decide arbitrarily to hold back payments like this.
Why does TUI get such special treatment? Don’t forget they flouted the international travel rules before the season opened on Rhodes. Perhaps it would be better to find another travel partner for greek hoteliers, etc.
I for one am truly unimpressed with TUI – I can’t be the only one?
The problem with TUI is its lack of social conscience. This is not uncommon in business but TUI’s actions
take it to another level. They understand that the hoteliers are not in a strong position to argue and they will use this to their advantage. Yes, it’s a cynical move and may rebound on them when, and if, the sector
recovers, leading to hoteliers having more options from other tour operators. I hope so. Talking to the many tourists who visit our island of Zakynthos, it is clear that TUI are not the most popular operator in the market
with complaints badly handled at a local level and within their HQ Complaints Dept.
They rely on their size and financial clout to carry out these hard-nosed policies at the expense of others.
Bully-boy tactics? I think so.