Despite the apparently record tourism season, some of Majorca's hoteliers are saying that they are experiencing cash flow issues because payments of their invoices to tour operators are being delayed.
It is said that these delays date back to June. Both Thomas Cook and Tui have been named, but it is claimed that other British and German tour operators are also holding back with payments. The hoteliers say they cannot understand why there are delays, given that the Balearics and Spain have supposedly been so profitable this summer for European operators. However, they also point to a possible reason - that the tour operators have had problems because of the insecurity in other Mediterranean destinations. Although Majorca has been a beneficiary of this insecurity, the tour operators have had to deal with cancellations of bookings and flights, and these have meant losses.
The hoteliers point to the costs that they have to cover - those related to staff, suppliers, various services and maintenance. They are hoping that the situation is soon normalised. If not, legal action will be taken.
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" The hoteliers point to the costs that they have to cover - those related to staff, suppliers, various services and maintenance." The amount of profit these GREEDY HOTELIERS make both present and past. Would warrant continued payments, to their very poorly paid staff etc., from their massive reserves of funds. The extremely rich Hotel Groups , that are buying up many parts of Mallorca. That completely refurbish and upgrade their Properties, to at least a Mallorcan FOUR star rating, May have to wait longer for their All Inclusive greedy dues. Because of the very low euro exchange rates. Currently 1.12 to one pound.