Operators to Pursue Damages

The insolvency of FTI Group has resulted in over 111 million baht in losses for Thai hotels, prompting operators to seek assistance from the German Embassy in Thailand through the Tourism and Sports Ministry.

The Thai Hotels Association (THA) and the Tourism Authority of Thailand (TAT) are preparing to send a formal request to the ministry for coordination with the German Embassy regarding potential compensation claims.

According to TAT Deputy Governor Siripakorn Cheawsamoot, only 250,000 German travelers who purchased tour packages can expect reimbursement via the German Travel Security Fund, highlighting a gap in support for agencies outside Germany.

While most tourists who booked through FTI in Thailand have completed their trips, hotels are facing challenges in claiming related expenses, with some experiencing losses of 3-4 million baht.

THA President Thienprasit Chaiyapatranun noted that since FTI’s collapse, hotels have refrained from taking new bookings from the operator, effectively staving off further debt accumulation.

In light of the situation, THA has encouraged affected hotels to submit their booking invoices to one of FTI’s partnered agencies in Thailand to facilitate reimbursement calculations.

The pandemic previously left hotels grappling with unpaid bookings from a Russian operator, though they eventually received compensation.

Given the ongoing global economic challenges, hotels may need to reassess credit terms with wholesale tour companies to mitigate financial risks, as reliance solely on online bookings remains insufficient.

Chiravadee Khunsub, TAT Executive Director for Europe, indicated that some hotels proactively shifted to a pre-paid system amidst FTI’s financial instability, though many lacked timely access to crucial information, causing disruptions in payment processes.

To prevent similar occurrences in the future, TAT’s European offices will offer consultation and verify the credibility of tour operators upon request from hotels.

Despite recent challenges, TAT remains optimistic that the collapse of FTI will not hinder European tourist arrivals to Thailand, as travelers have numerous alternatives for booking their trips.

As of July 31, the number of European tourists reached 4 million, with a target of 7 million set by TAT in sight.