Spanish authorities on Friday approved allocation of 700 million euros ($773 million) to fight the consequences of the recent collapse of UK travel company Thomas Cook for the Spanish tourism industry, Deputy Prime Minister Carmen Calvo said
MADRID (Pakistan Point News / Sputnik - 11th October, 2019) Spanish authorities on Friday approved allocation of 700 million Euros ($773 million) to fight the consequences of the recent collapse of UK travel company Thomas Cook for the Spanish tourism industry, Deputy Prime Minister Carmen Calvo said."This is a reasonable response to the crisis, which will mitigate the impact on employment and economic activity in such an important sector of our economy as tourism," Calvo stressed.
According to the deputy prime minister, 200 million euros out of 700 would be used to support the tourism sector by "meeting financial needs of those affected by bankruptcy."
On September 23, the Thomas Cook Group, which includes a tour operator and airline, announced its compulsory liquidation following unsuccessful talks between the company's stakeholders and potential new donors on the terms of the firm's recapitalization and reorganization. All of the company's bookings, including flights, were immediately canceled.
Chairman of the Spanish Confederation of Hotels and Tourist Accommodation (CEHAT) Juan Molas told Sputnik in late September that the UK tourism giant's liquidation might lead to early closure of about 500 hotels in Spain. Last year, Thomas Cook airline took some 3.6 million tourists to Spain, while 2.4 million were carried by the airline from January to August this year. The most popular destinations were the Canary and Balearic Islands. In addition, Thomas Cook owned more than 40 hotels in Spain and employed 2,500 people.
