German operator FTI filed for bankruptcy, dozens of hotels in the Canary Islands affected

Published on June 04, 2024
Canary IslandsNews from Canary Islands
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The German tour operator FTI Group declared bankruptcy yesterday in a local court in Munich, burdened with a substantial debt of almost 1 billion euros and unable to meet its payment obligations.

FTI is the third-largest German tour operator and brings 15% of the tourists to the islands. Of the 2.5 million Germans who visited the islands in 2023, FTI accounted for almost half a million. This wholesaler generated 800 million euros in revenue on the islands in 2023.

Additionally, the tour operator manages 30 hotels on the islands, some owned and others operated, under the Labranda brand. Gran Canaria and Fuerteventura are the most affected by its collapse, with 14 establishments in Fuerteventura and 11 in Gran Canaria, including the Marieta and Playa Bonita hotels. In Tenerife, FTI operates three hotels, and in Lanzarote, it operates four.

The Canary Islands' Minister of Tourism and Employment, Jéssica de León, expressed concern on Monday about the local tourism sector following the bankruptcy of the German tour operator FTI. Spain Meeting Point manages FTI’s operations in the archipelago.

“We have scheduled coordination meetings with tourism associations, sector unions, and island councils to define a roadmap to mitigate the potential effects of FTI's insolvency,” she emphasized.

De León also mentioned that she will discuss this issue with the Secretary of State for Tourism, Rosario Sánchez, seeking a meeting to address the impact of FTI's bankruptcy on the islands.

“We are thoroughly studying the situation to understand the real extent of job losses and the number of tourists affected,” De León added. “FTI was a vertically integrated group covering almost the entire value chain, and although they didn't have their own airline, they contracted charter services or reserved seats on regular airlines,” she concluded.

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