Hoteliers want exemption from taxes following Thomas Cook collapse
Corfu tourism
10 Oct 2019
/ 09:09
CORFU. Corfu Hoteliers΄ Association estimates losses of 35m Euros following the collapse of Thomas Cook.
The data comes from a study conducted by the Research Institute for Tourism (ITEP) at the Hellenic Chamber of Hotels (XEE).
The study covered the period September 24-27 with primary data from hotels working with the Thomas Cook Group on September 23 - the date that the company filed for bankruptcy.
The scale of the problem created by the collapse, as shown by the reliable data in the ITEP study, is very large - especially at the present time when tourism plays such a significant role in the real economy and every negative development, especially one on this scale, can have a serious impact on the country's economy and regional network. The true scale of the damage needs to be measured in order to deal successfully with the consequences.
The survey said that the negative impact was not restricted only to claims for 2019 - which can no longer be covered - but also to estimated losses of arrivals and stayovers in 2020
The main conclusions from the ITEP study for Greece and the Ionian Islands are as follows:
A. Greece
- The survey showed that from a total of 9,917 hotels operating in the country, 1,193 were cooperating with Thomas Cook Group in 2019.
- The total number of claims from hotels along with the estimated loss of revenue following the Thomas Cook bankruptcy come to 190m Euros for 2019. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 315m.
- The total losses for the hotel industry for 2020 come to 516m Euros. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 929m.
- Tourism affects the whole economy by a factor of 2.5 - by this calculation the estimated loss to the Greek economy will be almost 800m in 3029 and 2.5 billion in 2020.
B. Ionian Islands
- On a regional level, the Ionian Islands are the most dependent on Thomas Cook. Out of a total of 965 hotels in the Ionian Islands 260 (27%) cooperate with the company and the losses come to 48% as there is a large number of hotels completely dependent on Thomas Cook.
- The total number of claims from hotels along with the estimated loss of revenue following the Thomas Cook bankruptcy come to 46m Euros for 2019. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 76m.
- The total losses for the hotel industry for 2020 come to 124m Euros. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 223m.
- Tourism affects the whole economy by a factor of 2.5 - by this calculation the estimated loss to the whole economy will be almost 190m Euros in 2019 and 560m Euros in 2020.
Taking into account the ITEP study, Corfu Hoteliers' Association have presented data for Corfu.
C. Corfu
- The total number of claims from hotels along with the estimated loss of revenue following the Thomas Cook bankruptcy come to 21.5m Euros for 2019. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 35m.
- The total losses for the hotel industry for 2020 come to 60m Euros. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 108m.
- Tourism affects the whole economy by a factor of 2.5 - by this calculation the estimated loss to the whole economy will be almost 88m Euros in 2019 and 270m Euros in 2020.
Tourism is too important an industry to be just left to fend for itself. It is everyone's responsibility and we must all fight to protect it in the short, medium and long-term.
We stress the need for a large alliance involving the Government, NTO, Regions, Municipalities, organisations and businesses to create a promotional and advertising campaign for the country and to find alternative business collaborators.
The extension of the tourist season and attracting visitors from a higher economic category are now of urgent importance for the tourist economy in our country as is the 10-year tourism plan which the Prime Minister Kiriakos Mitsotakis announced.
The Hellenic Chamber of Hotels is already working on a package of measures to support employment, liquidity for businesses in trouble and the sustainability of hotel units.
Corfu Hoteliers' Association has drawn up the package of measures below to give support to the hotel businesses that have been affected:
Municipalities
- Exemption for affected businesses from the stayover tax for Thomas Cook customers during the period in question.
- 15% discount on water bills for the period in question after the exact number of hotel units affected by the bankruptcy has been accurately cross-checked by the Ministry of Finance and the representative company for Thomas Cook. 50% discount on water bills for hotels that worked solely with Thomas Cook.
- Funds made available for websites, social media activity and advertising.
- All payment arrangements for monies owed by affected hotels to the Municipality frozen for a year.
Ionian Islands Region
- A plan of action on a national and regional level to provide flights to destinations that were served by Thomas Cook.
- A programme of tourist promotion and advertising to extend the tourist market for the affected destinations in collaboration with GNTO, the Regions and the Municipalities.
- Strengthening collaboration with existing tour operators with joint advertising campaigns from GNTO in the markets covered by Thomas Cook.
The study covered the period September 24-27 with primary data from hotels working with the Thomas Cook Group on September 23 - the date that the company filed for bankruptcy.
The scale of the problem created by the collapse, as shown by the reliable data in the ITEP study, is very large - especially at the present time when tourism plays such a significant role in the real economy and every negative development, especially one on this scale, can have a serious impact on the country's economy and regional network. The true scale of the damage needs to be measured in order to deal successfully with the consequences.
The survey said that the negative impact was not restricted only to claims for 2019 - which can no longer be covered - but also to estimated losses of arrivals and stayovers in 2020
The main conclusions from the ITEP study for Greece and the Ionian Islands are as follows:
A. Greece
- The survey showed that from a total of 9,917 hotels operating in the country, 1,193 were cooperating with Thomas Cook Group in 2019.
- The total number of claims from hotels along with the estimated loss of revenue following the Thomas Cook bankruptcy come to 190m Euros for 2019. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 315m.
- The total losses for the hotel industry for 2020 come to 516m Euros. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 929m.
- Tourism affects the whole economy by a factor of 2.5 - by this calculation the estimated loss to the Greek economy will be almost 800m in 3029 and 2.5 billion in 2020.
B. Ionian Islands
- On a regional level, the Ionian Islands are the most dependent on Thomas Cook. Out of a total of 965 hotels in the Ionian Islands 260 (27%) cooperate with the company and the losses come to 48% as there is a large number of hotels completely dependent on Thomas Cook.
- The total number of claims from hotels along with the estimated loss of revenue following the Thomas Cook bankruptcy come to 46m Euros for 2019. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 76m.
- The total losses for the hotel industry for 2020 come to 124m Euros. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 223m.
- Tourism affects the whole economy by a factor of 2.5 - by this calculation the estimated loss to the whole economy will be almost 190m Euros in 2019 and 560m Euros in 2020.
Taking into account the ITEP study, Corfu Hoteliers' Association have presented data for Corfu.
C. Corfu
- The total number of claims from hotels along with the estimated loss of revenue following the Thomas Cook bankruptcy come to 21.5m Euros for 2019. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 35m.
- The total losses for the hotel industry for 2020 come to 60m Euros. If other types of accommodation are added along with flight arrivals from other Thomas Cook agents, then the total comes to 108m.
- Tourism affects the whole economy by a factor of 2.5 - by this calculation the estimated loss to the whole economy will be almost 88m Euros in 2019 and 270m Euros in 2020.
Tourism is too important an industry to be just left to fend for itself. It is everyone's responsibility and we must all fight to protect it in the short, medium and long-term.
We stress the need for a large alliance involving the Government, NTO, Regions, Municipalities, organisations and businesses to create a promotional and advertising campaign for the country and to find alternative business collaborators.
The extension of the tourist season and attracting visitors from a higher economic category are now of urgent importance for the tourist economy in our country as is the 10-year tourism plan which the Prime Minister Kiriakos Mitsotakis announced.
The Hellenic Chamber of Hotels is already working on a package of measures to support employment, liquidity for businesses in trouble and the sustainability of hotel units.
Corfu Hoteliers' Association has drawn up the package of measures below to give support to the hotel businesses that have been affected:
Municipalities
- Exemption for affected businesses from the stayover tax for Thomas Cook customers during the period in question.
- 15% discount on water bills for the period in question after the exact number of hotel units affected by the bankruptcy has been accurately cross-checked by the Ministry of Finance and the representative company for Thomas Cook. 50% discount on water bills for hotels that worked solely with Thomas Cook.
- Funds made available for websites, social media activity and advertising.
- All payment arrangements for monies owed by affected hotels to the Municipality frozen for a year.
Ionian Islands Region
- A plan of action on a national and regional level to provide flights to destinations that were served by Thomas Cook.
- A programme of tourist promotion and advertising to extend the tourist market for the affected destinations in collaboration with GNTO, the Regions and the Municipalities.
- Strengthening collaboration with existing tour operators with joint advertising campaigns from GNTO in the markets covered by Thomas Cook.
