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12° Nicosia,
18 July, 2024
 

Unpaid debts from FTI Touristik bankruptcy threaten Cyprus hotels

FTI Touristik's collapse hits Cyprus and Greece hard

Newsroom

The European tourism market has been jolted by the bankruptcy of FTI Touristik, a major German travel organiser. The company, which has filed for bankruptcy and creditor protection with German authorities, has dealt a significant blow to the tourism industries of Cyprus and Greece, where it has a strong operational presence.

The news confirmed earlier concerns following FTI Touristik's notable absence from the recent Berlin tourist exhibition.

The bankruptcy will test the resilience of Cyprus's tourism sector, already grappling with the effects of the ongoing conflict in neighbouring Israel and an economic recession in the United Kingdom, a key market for Cyprus. According to PASYXE, the Cyprus Hotel Association, FTI Touristik brought 30,000 tourists annually to Cyprus, accommodating them in approximately 160 hotel units.

While the number may appear modest, it is significant in light of the compounded impacts of the Israeli conflict and uncertainties in the German market. "The decline of tourism partners in Germany casts a shadow of uncertainty over the future," said Roussounidis, general manager of PASYXE.

FTI Touristik primarily directed tourists to Paphos and free Famagusta, with fewer visitors to Larnaca and Limassol. Roussounidis noted that FTI Touristik has outstanding debts from last year and for tourists who visited in April and May of this year. The number of tourists brought by FTI Touristik this year was expected to surpass 30,000. "Recovering these debts will be a difficult and lengthy process," Roussounidis added.

The full impact of FTI Touristik's bankruptcy on the broader European tourism market remains to be seen, but the immediate repercussions in Cyprus and Greece highlight the interconnected nature of the industry and the potential ripple effects of such significant financial distress.

[Summary of Apostolis Tomaras' original story in Greek published in Kathimerini's Cyprus edition]

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Cyprus  |  economy

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