I Travel and FTI Touristik bankruptcies leave Thai hotels in lurch, Germany asked for relief
The Thai hotel industry is reeling from the collapse of two major European tour operators, I Travel and FTI Touristik GmbH, which has left 179 hotels out of pocket to the tune of 173 million baht, Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA) said on Friday.
The association said the fallout has predominantly impacted establishments in Chiang Mai and Chiang Rai, with losses estimated at 3 million baht for individual hotels.
Meanwhile, the bankruptcies have had a particularly severe impact on hotels in the south of Thailand, with 113 properties owed a total of 141.4 million baht. Bangkok and its surrounding areas have also been hit hard, with 33 hotels claiming losses of 19.1 million baht.
The association is collaborating with the Ministry of Tourism and the Ministry of Foreign Affairs to assess the damage and draft a plea for assistance from the German Embassy in Thailand.
"While the German government has implemented measures to assist their own operators affected by similar issues, Thai businesses are left vulnerable as they rely heavily on European tourists," Thienprasit noted.
He expressed concern over the impact of the bankruptcies on the Thai hotel industry, which has already faced significant challenges due to the Covid-19 pandemic. He warned that the collapse of FTI, one of Europe’s largest tour operators, could have far-reaching consequences for the sector.
While the THA acknowledges that caution should be exercised when dealing with foreign partners, the scale of FTI and the consistent flow of tourists made the company appear to be a reliable business partner. The sudden bankruptcy has caught many hotels off guard, leaving them facing significant financial losses.
