The Turkish government was on September 23 preparing a loan-support package for businesses in Turkey that could be harmed by the collapse of British tourism agency Thomas Cook.

There are fears that Turkey could miss out on more than half a million tourists a year following the liquidation of 178-year-old Thomas Cook, the world’s oldest travel firm. Thomas Cook currently had 21,033 guests accommodated in Turkey, the Turkish Culture & Tourism Ministry said. In all, around 600,000 holidaymakers around the globe have been left stranded by the sudden demise of the company. The UK government has launched the largest peacetime repatriation effort for citizens in British history.

One factor in the difficulties faced by Thomas Cook in recent years was the 2016 coup attempt in Turkey, one of the firm’s top destinations. The 2018 Europe-wide heatwave also hit the company as it deterred customers from going abroad.

Turkey’s tourism industry has enjoyed a recovery in the past two years from a slump in visitors largely caused by the anxieties that followed the failed move to topple the country’s Erdogan administration and subsequent crackdowns and purges, a wave of terrorist bombings and a ban on Russian charter flights to Turkey brought in by the Kremlin after the shooting down of a Russian fighter-bomber near the Syrian border by the Turkish Air Force. So certain tourism businesses that found themselves back on the up will not welcome this new setback.

Major source of income

Officials will also be worried by the loss of Thomas Cook. Tourism is a major source of foreign currency and income for Turkey. It helps the country address its current account deficit, especially in the summer months. The country received 40mn tourists in 2018, bringing a revenue of $29.5bn, official figures show.

Turkey could miss out on 600,000-700,000 tourists a year following the Thomas Cook collapse, Reuters quoted the head of Turkey’s Hoteliers Federation (TUROFED), Osman Ayik, as saying on September 23. He said the estimate was based on the number of tourists that had come to Turkey with Thomas Cook in recent years. Those tourists may now decide against returning with other travel agencies, he noted.

Ayik estimated that there were currently 45,000 tourists in Turkey from the UK and other European countries who had travelled with Thomas Cook.

Dalaman Airport’s website showed at least seven flights to several UK destinations scheduled to depart on September 23 had been cancelled.

 “There are a large number of small businesses whose fates depend on Thomas Cook, especially in Mugla, Dalaman and Fethiye,” Ayik was cited as saying, referring to popular destinations on Turkey’s western coast.

He said Thomas Cook owed 100,000-200,000 pounds sterling each to some small hotels.