#Tursas

FTI Panic in the Tourism Sector

Panic is being experienced in the tourism sector due to FTI. The reason for the panic is the bankruptcy application of FTI, Europe's third-largest tour operator based in Munich, Germany. This situation has dealt a significant blow to the global tourism sector during the early days of the summer holiday season. Following the bankruptcy decision, reservations made through FTI began to be canceled. Turkey has been significantly affected by these cancellations. While the Turkish tourism sector has started working to compensate for the damage caused, TURSAS Legal Counsel Attorney Yasemin Bal made statements regarding the matter. She said: 'FTI Group announced on its website that the funds of all tourists who purchased packages will be covered by a fund. For travelers, the issue has been almost resolved; the problem has been managed. They owe this to the great experience from 2019; it was organized and settled very quickly. However, there are not just tourists involved here. Companies providing accommodation, food, and transportation services to tourists have also incurred losses. Many of the reservations they made are in the process of being canceled. Our ministry is working hard to prevent these cancellations. If cancellations occur, it will cause significant damage. The most important feature of developed countries is that their insurance sector is also developed. These companies, especially publicly traded ones, have a policy called director's liability insurance to cover damages caused by wrong decisions of board members or general managers or decision-makers. These policies are issued. Now, all suppliers, hoteliers, transporters, food units, and restaurants in Turkey and around the world have the right to claim damages from the German insurance fund due to the cancellations. They can use this right. TURSAS has done significant work in this regard. We have completed our preparations to implement this work. Companies will inevitably be affected, but the extent of the impact and the positions that our other chain operators will take are important. The event is very new; it happened in June and spread like a wave with a domino effect.'