CREDIT schemes of up to €700 million have been approved to help soften the blow to Spain's tourism industry following the Thomas Cook collapse in September.
The government is offering finance of up to €200m through the Official Credit Institute (ICO) to attend to immediate economic emergencies in the sector, such as hotels which have not yet been paid for travellers' trips.
A further half a billion has been set aside for firms in the industry to borrow from in order to expand, adapt and improve their businesses to make the holiday sector in Spain more competitive, attractive and better equipped, including taking on more staff, modernisation, new ideas and lines of trade, and 'going digital'.
The latter €500m will be available through the State Finance Fund for Competitiveness in Tourism (FOCIT), administered by the ICO, and linked to the Secretary of State for Tourism.
Among the steps included with this release of funds for the industry are direct financial benefits of €15m and €8m respectively for the Canary Islands and Balearic Islands, which have been the hardest hit by the Thomas Cook collapse as these are among the most popular package holiday destinations in Spain for tourists from the UK.
“We're focusing on everyone affected, and especially, very much so, on the workers who lost their jobs after the chain went down,” said acting deputy president of Spain, Carmen Calvo.
Ever since the government found out Thomas Cook was about to go out of business and the UK authorities did not intend to bail it out, ministers have been analysing 'justice measures', says Sra Calvo, and has not ruled out launching legal action on behalf of those in Spain who have suffered the most damage.
The Spanish Commission of Business Organisations (CEOE) has been brought on board as part of a 'combined response' to the 'legitimate defence of interests' of traders and workers, and the ministries of justice and of tourism are working on setting up information and advice for companies owed money.
Some of the extra support and finance for the industry is aimed at making it more sustainable as an economy and a job market, focusing heavily on removing the seasonal aspect of it, which is responsible for employment being largely temporary or, if permanent, with long lay-off periods, on the islands and coasts.
It is hoped this will be achieved by diversification and digitalisation, says Sra Calvo.
