Turismo de Portugal launched a credit line of 150 million euros aimed at tourist companies affected by the bankruptcy of tour operator Thomas Cook, to deal with cash flow problems.
The creation of this support was one of the subjects discussed at a meeting held yesterday, Saturday, between 28 businessmen and leaders of business associations in the Algarve tourism sector, Turismo de Portugal and the Algarve Tourism Region (RTA), in Faro.
According to Filipe Silva, vice president of Turismo de Portugal, there was «a concern to listen to companies in the tourism sector that have been affected by all the turbulence associated with the operator Thomas Cook in the various issuing markets where he operated».
«Above all, we tried to understand the levels of overdue and maturing debts, as well as to understand the type of concerns that companies have, when it comes to where to start the claim. In this area, we have been identifying, in each of the issuing markets, which are the channels, which are the current situations and where entrepreneurs should start working to claim their credit», he explained.
Turismo de Portugal and RTA are, moreover, working in different areas to ensure that the impact of the bankruptcy of this large tour operator is mitigated.
And one of the main measures is the creation of the 150 million euros line that is already available to Portuguese companies. This measure is justified by Filipe Silva with the fact that it is expected that some of the affected companies will have «treasury problems, namely those with a higher level of exposure to the operator», a situation to which it is necessary to give «a quick response».
João Fernandes, president of RTA, explained that this «is a line that allows companies to apply for credit of up to 1,5 million euros. We are talking about a period of three years for reimbursement and a 50% mutual guarantee fee. These are good conditions for companies».
Elidérico Viegas, president of the Association of Hotels and Touristic Enterprises of the Algarve (AHETA), considered, at the end of the session, that the creation of this credit line is a positive step.
«The amount of the credit line seems to me to be adequate and adjusted to the needs, but with repayment terms that are too short. We have had the opportunity to express our concerns regarding this matter here. We think that the deadline should be extended from three to six years», he revealed.
At the moment, «there is no question of having companies in the Algarve going bankrupt, that is not what is at stake. Fortunately, the fall of Thomas Cook is not enough to jeopardize the survival of hotel and tourist companies in the region».
Even so, says Elidérico Viegas, "it is still a huge loss, so this line of support for the treasury is very welcome."
At yesterday's meeting, it was already possible to determine an approximate amount of the losses that the bankruptcy of Thomas Cook could cause.
«The global amount already calculated was 4 million and 383 thousand euros. It is, of course, a value that does not encompass the full impact, as there are still companies that are investigating the consequences of this bankruptcy in different markets», revealed João Fernandes.
Another measure announced yesterday was the launch of a marketing plan "in the amount of 1,5 million euros, which aims not only to compensate for losses, but also to take advantage of the opportunity to diversify markets."
«We are talking about seven betting markets and different distribution channels, from the reinforcement of air connections, to an investment in tour operators, to compensate for the bankruptcy of Thomas Cook', according to the president of the RTA.
«What is important to note is that the bankruptcy of Thomas Cook has a huge negative impact on the region, because the fact that, at the moment, there is one less large operator working in the Algarve will give much more bargaining power to the operators that remain, either in terms of prices and in terms of contracted accommodation capacity”, warned Elidérico Viegas.
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