Bankruptcy Crisis in Tourism: A special operation is being carried out to prevent tourists from suffering. Evaluations regarding the bankruptcy of FTI Group, one of the representatives of the Turkish tourism sector… Tourism Professionals Evaluated FTI Group’s Bankruptcy
Munich-based giant tour operator FTI Touristik, which brings 1 million tourists to Turkey annually, failed to overcome the financial crisis and went bankrupt.
The decision had a shocking effect, especially among tourism professionals in Antalya.
Tourism professionals who set up a crisis desk said that 400 thousand reservations were made through the company this year, but payments were not sent. A special operation is being carried out to prevent tourists from suffering.
FTI, based in Germany, went bankrupt due to its cheap price policy and wrong market strategy.
The news of bankruptcy caused shock especially in Antalya and Alanya tourism. Immediately after the bankruptcy, a crisis desk was established under the coordination of the Ministry of Culture and Tourism, while the Mediterranean Touristic Hoteliers and Operators Association launched a special operation to prevent tourists coming to Turkey through FTI from suffering.
“IT IS NOT YET CLEAR WHAT THE INSURANCE PROCESS WILL AND WILL NOT COVER”
Salim Uzun from Hürriyet Newspaper evaluated the short and long-term effects of the bankruptcy decision taken by the company, which has 12 hotels in Turkey and is claimed to owe millions of Euros to the hotels in the Mediterranean Region. Kaan Kavaloğlu, President of the Mediterranean Touristic Hoteliers and Operators Association (AKTOB), “Our primary goal is for our guests who come to Turkey with FTI to have their holidays and return to their countries without any problems. Of course, FTI primarily brings German tourists to our country. However, we were also hosting British, Dutch and French guests in our country through our local company in Turkey. It is not yet clear what the insurance process will and will not cover. “There is a cloud of dust,” he said.
“THE ISSUE IS NOT AS SERIOUS AS THOMAS COOK, BUT IT IS STILL BORROWING”
Noting that approximately 400 thousand sales were made through FTI for the busy season, Kavaloğlu continued: “This is also a fact; FTI was a company that also made sales for the winter season. Maybe there may be problems in this regard. One of our primary goals is to make Turkey reservations with FTI and ensure that tourists who were left stranded by the bankruptcy choose our country again. We immediately initiated high-level negotiations with many tour operators on this issue. Of course, the issue of insurance is also important. The German government should act sensitively on this issue. The issue is not as serious as Thomas Cook, but it is still annoying. “The company has debts of approximately 25-30 million Euros in the Turkish market.” Tourism Professionals Evaluated FTI Group’s Bankruptcy
“GUARANTEE” LETTER FROM GERMANY
Sister Cities Tourism Association Secretary General Hüseyin Baraner Reminding that FTI changed hands about a month ago, “The company had 600 employees only in Antalya. Turkish tourism professionals are of course in panic. The Federal Insurance Association of Germany sent us an official letter. “According to this article, all expenses of tourists who holiday in Turkey with a full package through FTI are guaranteed until June 30,” he said.
“MEDITERRANEAN COUNTRIES WILL ENTER A PERIOD OF DISTURBANCE DURING THIS PROCESS”
Antalya City Council Tourism Working Group Chairman Recep Yavuz He said, “Antalya especially feels this closely. Because it was bringing more than 1 million European tourists to Antalya. There are currently 25 thousand guests who have come through this operator. These guests need to go back smoothly and without any problems. But unfortunately, these things create many victims. Both the tourists, the airline company and the hotel are victims. This bankruptcy creates a very serious victimization. We experienced this during the previous Thomas Cook period. The place of such companies is not easily filled. That’s why Mediterranean countries will enter a period of hesitation in this process,” he said.
IT WAS SOLD FOR 1 EURO
FTI Group, Europe’s third largest tour operator, announced in April that it had joined the consortium led by the US-based investment company Certares as part of the process of strengthening the company’s capital and restructuring its shareholder base. It was announced that the purchase was made for 1 Euro in return for assuming the group’s debts.
Karl Markgraf, CEO of FTI Group, said: “With the support of Certares and its extensive experience in the industry and the capital provided by the Consortium, FTI is uniquely positioned for future growth and profitability benefiting all stakeholders, including our customers, commercial partners and employees. . “We are determined to launch our next period of success and further strengthen our position as a leading player in the tourism industry in Germany and Europe.”
