Thai hotel operators are seeking support from the German Embassy in Thailand after incurring losses due to the bankruptcy of German tour company FTI Group. The collapse of FTI, Europe’s third-largest tour operator, has reportedly led to over 111 million baht in losses for hotels across Thailand. The Thai Hotels Association (THA) and the Tourism Authority of Thailand (TAT) are preparing to approach the Tourism and Sports Ministry to facilitate discussions with the embassy on possible compensation mechanisms.
Thai Hotels Face 111 Million Baht Loss After FTI Group Insolvency
FTI filed for insolvency in June, impacting tourism operations worldwide. While 250,000 German travelers who purchased packages might receive refunds from the German Travel Security Fund, no provision has been made yet for compensating agencies outside Germany. In Thailand, most tourists had completed their trips before the collapse, but local hotels have been unable to claim expenses owed by FTI, with some reporting individual losses of up to 4 million baht.
To mitigate potential losses and address the ongoing risk of similar incidents, some Thai hotels have already transitioned to a pre-paid booking system. The TAT’s European offices are also stepping up efforts to support Thai hotels by verifying the credibility of tour agencies. Despite the setbacks caused by FTI’s collapse, TAT remains optimistic about reaching its European tourist target, citing a diverse range of alternative booking options available to travelers.
Source: National News Bureau of Thailand
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