The transport sector has also been affected by Thomas Cook collapse. | MIQUEL A. BORRváS - UH

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Because of the collapse of Thomas Cook, some hotels and other businesses dependent on the tourism sector are terminating employment contracts a month early; these are contracts which would normally run until the end of October.

The general secretary of the CCOO union, José Luis García, says that there are hoteliers who are making arrangements for employees to have October as holiday rather than have to pay them up to the end of the season. Hotel businesses are adopting measures which "best suit them", he adds, noting that these arrangements are being agreed with works committees. He stresses that social security contributions for October will be paid in order not to prejudice workers and their benefit claims.

Some hotels in certain resort areas are planning to close early. Hotelier sources suggest that this early closure will mostly affect Alcudia Bay, Cala d'Or, Cala Millor, Magalluf and Paguera. Cala Ratjada, Playa de Palma, Puerto Pollensa and Santa Ponsa will be less affected, if at all. In Playa de Palma, the hoteliers association has said that hotels are not planning early closures.

García says that restaurants have been the most affected by a fall in demand, while in the transport sector, the Balearics Transport Federation indicates that workforces will shortly be reduced by some 15%.