Thomas Cook: Spanish government unveils rescue package to revive tourism after travel company collapses

A €200m line of credit to be extended for tourism businesses

The Balearic islands, which include Mallorca, have been hardest hit by the collapse of Thomas Cook (Getty Images/iStockphoto)

The Spanish government has unveiled a rescue plan for the Spanish tourism sector following the collapse of Thomas Cook.

Reyes Maroto, acting minister of industry, commerce and tourism, has announced a wave of measures for tourism businesses, primarily in the Canary and Balearic islands, where the collapse has been felt most acutely.

The 178-year-old tour operator Thomas Cook collapsed last month after last-minute talks to find an extra £200m in funding failed.

The collapse has prompted the UK’s Civil Aviation Authority to launch Operation Matterhorn to repatriate stranded Thomas Cook customers.

The 13 measures announced by Ms Maroto include opening a €200m line of credit for tourism businesses to keep afloat.

Other measures include strengthening the PR campaign for Spanish tourism and cutting tariffs for airlines flying to the Balearic and Canary islands.

Tourism makes up around 10 per cent of the Spanish economy, but the figure is much higher on the islands, which depend heavily on international visitors – particularly from the UK.

News of the rescue comes as the head of the Spanish hotel federation has warned that 500 hotels could close “immediately” due to the collapse of the tour operator.

Juan Molas, head of Spain’s Confederation of Hotels and Tourist Accommodation, told business daily Cinco Dias that “the situation could get worse if the government doesn’t take immediate action”.

One in five of the hotels were exclusively dependent on the British tour operator, he said, while the rest counted around 70 per cent of their guests as Thomas Cook clients.

The worst affected areas were in the Canaries and Balearics, reported AFP.