Several companies in the Algarve are at risk of closing due to the huge debts they are owed by Thomas Cook, the British tour operator which went bust last month. Hotels in the Algarve estimate that they are owed around €15 million in total.
“Over 30 companies are owed money, and some of them own more than one hotel in the Algarve,” Algarve hoteliers association boss Elidérico Viegas told TSF radio this week.
On top of this, many hotels ended up losing out on the money they expected to make from several holidaymakers who had booked their stay via Thomas Cook and now are no longer coming over.
TSF reports that while the biggest debts are owed to big hotel groups, smaller businesses will be the worst affected in the Algarve.
One example is a local airport transfer company owned by Carlos Gonçalves Luís, who is owed around €118,000. As TSF points out, “it is a lot of money for a small company”.
“We are seriously thinking of closing,” Luís said, explaining that it is “very hard” to stay open due to the losses.
The businessman is well-aware that it is “impossible” that he will ever get paid back and said that the €150 million government fund is not an alternative as it is a “loan without interest that has to be paid back” eventually.
