Thomson blames fuel rises for fall in long-haul sales

Market update

Thomson blames fuel rises for fall in long-haul sales

Report by LISA JAMES

LONG-HAUL destinations are suffering from the effects of increased fuel prices and the high value of sterling, according to figures from Thomson.

The Caribbean is suffering most, with projected capacity for winter 2000/01 down 19.7% on last year.

Thomson Holidays managing director Shaun Powell said:”The Caribbean is having a very bad time butlong haul in general is suffering. Short haul is getting better value for money but long haul is getting worse. It is getting harder and harder to sell long-haul holidays.

“Scheduled airlines are dumping capacity into the Caribbean. That is a worry for all mass tour operators,” he added.

Powell believes it will be a long time before Turkey returns to its position of one of the UK’s top-selling destinations.

Thomson’s figures show the number of passengers to the country were down 27% this summer.

Powell said:”That figure comes after one of the worst years for Turkey in 1999.”

He added:”But the German market is massively up. The Germans are returning to Turkey in very large number but the Britons are very worried.

“It has not been helped by the stabbing of two Leeds United fans in Istanbul.

“It might take a very long time for recovery for the British market.”

Powell also blamed negative press and broadcast coverage of Ibiza for a 7.5% downturn in volumes to the island this summer.

He said: “Ibiza has had an awful lot of negative press in the past two years and a lot of negative broadcast coverage.

“There is a general feeling that Ibiza is a youth destination. It is not. It has all sorts of different types.

“We are very disappointed in Ibiza and we would like to think that it could recover.”

The Caribbean: sales for this winter are down 19.7%