Meeting on Thursday at the Balearic government's headquarters.

03-10-2019Pere Bota

The Balearic government has presented measures to tackle the crisis caused by the collapse of Thomas Cook. One of these, announced on Thursday evening, will be the return of tourist tax paid by Thomas Cook clients to hoteliers for July, August and September. In effect, this should mean that hotels simply keep tourist tax payments made by these clients. This measure will not apply to hotels that were under Thomas Cook's direct management.

The tourism minister Iago Negueruela says that there is no plan for a suspension of the tourist tax.

A further measure is that the government is to provide a line of extraordinary credit with which it will pay Thomas Cook employees affected by the collapse of the tour operator 500 euros per month for a period of four months.

These payments will be for cases of immediate need where employees are unable to get any benefit or other employment. The government refers to these employees being "prisoners" of the "complex" insolvency process. At present, only the main Thomas Cook company, with its over 700 employees has filed for insolvency. There are four others which are companies for the different hotel brands; these are in a state of pre-insolvency, meaning that they have room to try and negotiate with creditors and to bring in new financing as a means of staving off filing for insolvency.


To be able to write a comment, you have to be registered and be logged in.

* Mandatory fields

Pollensa1946 / Hace over 2 years

My wife and I have been holidaying in Mallorca since 1979, often accompanied by the wider family. In the past 20 years we have visited two or three times each year, summer and winter, staying up to a month on one visit, spending money in the local community on a wide range of products. During those twenty years we have seen significant price increases, often 10% or 20% over one year, and the most guilty parties have been hotel and apartment owners who cry about having to protect their businesses from increasing charges on them for electricity, water and labour. These complaints have often fallen on deaf ears when I see them driving off in their 100,000 Euro Range Rover. Now the government wants to cushion them with money taxed from tourists. If the TC demise presents another opportunity to increase charges on the basis of demand exceeds supply then it's goodbye from us.


Nick / Hace over 2 years

Most, if not all of the general public are totally opposed to the local governments idea of giving eco tax money to the hoteliers. Will the politicians take any notice ? I very much doubt it.


Yogi / Hace over 2 years

Misappropriation of funds surely? So other tourists who have paid the tax are subsidising the hotels who have lost custom? It totally erases any credibility in this tax, not that it had much anyway. The anti-mallorcan sector of the British press will love this. Where are the (political) voices of opposition to this?


MelB / Hace over 2 years

Another clear example of who pulls the financial strings in the Balearics. The mega-rich hoteliers should take the rough with the smooth just as we ordinary folk have to.


Pollensa1946 / Hace over 2 years

As I recall Mallorca is in favour of fewer tourists. Seems like they have arrived at the perfect solution. Be careful what you wish for.


Liz / Hace over 2 years

The hoteliers have no right to have the tourist tax money, this is a disgrace. Just another example of how corrupt this third world government is.


Brett Dennis / Hace over 2 years

What about the peripheral businesses also affected? Why should the greedy hotels get it all, they should be compensated eventually under insurance schemes.


Nick / Hace over 2 years

Question: what are they supposed to do with money ? Give it back to the tourists ?


Ricky / Hace over 2 years

While I applaud any support for TC employees, supporting the hoteliers is ridiculous. These money-grabbers have been feasting and profiting for years. They should be able to support themselves in bad times, just like any other business. In any country, a free market should determine who wins and who loses. That’s capitalism, and rightly so. UK history under Labour is littered with government props to failing businesses. Which went on to fail again. And guess who funded it all - yes, we the taxpayers. I wonder what the people of Mallorca feel about their taxes going to prop up rich hoteliers?