Sun, sea and skint Spaniards: Spain plans up €300m tourism rescue package after Thomas Cook collapse
Spain is preparing a $300m rescue package for its tourism industry, after the collapse of Thomas Cook is said to have left bars deserted and beaches empty at its holiday hotspots.
The country’s tourism minister said the cash would be split across 13 different measures, including a credit line for companies struggling to cope.
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Reyes Maroto added the scheme had not yet been given the nod by Spain’s cabinet, but they would meet on 11 October to make a final decision.
Not long after the 178-year-old travel giant went bust last month, Spain went to the European Union asking for extra cash.
Maroto met EU employment commissioner Marianne Thyssen, in a bid to secure emergency funding which would come from the European Globalisation Adjustment Fund.
However, that pot only has an annual budget of €150m – half of what Spain wants to splash to soften the impact on its tourism industry.
Thousands of jobs in the Spanish tourism sector are said to be on the line following the collapse, especially in the Balearic Islands and Canary Islands.
The Daily Mirror reported British-run businesses in Majorca fear they might go bust, after the subsequent downturn in trade.
Separately, the PA reports the taxpayer will be forced to cough up £60m to fund unpaid wages, holiday pay and redundancy costs for Thomas Cook’s 9,500 staff.
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This comes on top of the estimated £100m cost of repatriating British citizens not covered by Atol protection.
Grant Schapps said last month the government would look to recoup those costs from insurance companies and other related parties.