The bankruptcy of a German tourism giant will affect hotel bookings in Cyprus

FTI Touristik, owner of the third-largest tour operator in Europe, FTI Group, has filed for bankruptcy. Industry experts estimate that this event will negatively impact tourist bookings to Cyprus.

According to a press release from the parent company, FTI Group, the bankruptcy filing was submitted to the Munich District Court on Monday. Currently, the decision directly affects the FTI Touristik brand, with bankruptcy proceedings expected for other companies within the group in the future.

FTI Touristik is in discussions with new potential investors. However, this season the company faced lower-than-expected booking figures and demands from suppliers to pay for services and goods in advance.

As reported by TASS, a section with information for clients has been opened on the tour operator's website. Clients who have already started their tours will be able to complete them according to the purchased programs. Tours booked from June 4th are preliminarily canceled and may only be partially completed. This could potentially affect thousands of holidaymakers at the beginning of the summer season.

Experts estimate that the bankruptcy of FTI Group will also have a negative impact on tourist bookings in Cyprus.

According to Philokypros Rusinides, General Manager of the Cyprus Hoteliers Association, FTI works with approximately 160 hotels in Cyprus. Thus, the bankruptcy of the company could affect up to 30,000 hotel bookings on the island.

Primarily, this concerns the tourism market in Germany, as well as in Austria and Switzerland, where there are also representations of the bankrupt tourism giant.