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Major Hotel Associations Reject TUI Debt Repayment Terms

Samui Times Editor

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Major Hotel Associations Reject TUI Debt Repayment Terms | Samui Times
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12 hotel associations in southern Thailand have rejected TUI ‘s revised debt repayment plan, arguing that the company has already postponed payments by up to five months.

The associations said…“Please understand that your company has already consumed our accommodation services before the Coronavirus outbreak and now, you are insisting on holding back funds.”

“These punishing and unfortunate payment delays of between 30 to 150 days have caused hoteliers not to be able to fully support staff, creating incredible and long-term damages, all the while there are no incoming earnings at all since the end of March 2020 up until now.”

Instead, the organizations sent a letter to TUI CEO Friedrich Joussen detailing the counter-proposal.

All 12 presidents signed the letter and added the logos to their official organization.

Last week, about 100 hotels contracted by TUI AG for holiday accommodation in 2019 and 2020 reported that TUI was renegotiating credit terms and connecting them to hotels signing new contracts.

Hotel partners in Thailand said they owed about THB2 billion mainly to TUI ‘s holiday bookings in South Thailand at iconic resorts such as:

As well as resorts along the Andaman Sea coast.

The financial exposure of TUI in Thailand goes beyond hotels. Reliable travel sources indicated payments will also be due for services rendered by Thailand Airports, AeroThai Agency responsible for air navigation and overflight charges, ground handling and airline catering services.

TUI is involved in tour operations in Thailand through a licensed travel company, Destination Services. The joint venture with the German tour operator is responsible for tours and transfers in Thailand, booked by TUI AG and its affiliate travel brands. Moreover, in South East Asia, other travel companies are responsible for tours and transfers under different conditions and credit terms.

TUI is potentially the world’s largest tour operator with a network of retail travel agencies, online booking agencies and airlines, hotels and a cruise ship.

SOURCE: TTR Weekly

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