| Journal: TWUK | Section: |
| Title: | Issue Date: 19/11/01 |
| Author: | Page Number: 2 |
| Copyright: Other |
Bankruptcies rise as retailers and operators feel the effects of reduced cash flow
Terror attacks spark rise in agency failures
Report by Kirsten Bowling
Reynolds:hopes to see a turnaround in bookings by January
THE NUMBER of agents going out of business has nearly quadrupled since September 11 compared to the same time last year.
ABTAsaid 15 agencies have filed for bankruptcy following the terrorist attacks in the US, compared to four during the same two months in 2000.
Chief executive Ian Reynolds said:”It is a shame that so many travel agents are going out of business but we are comparing a very good 2000 with a bad year this year.
“We think there will be more failures because of the reduced cash flow and if our members are able to keep going until the new year we hope to see bookings return by January.” However, he said this does not compare to 1991, when 120 agencies went out of business because of a combination of the recession and the Gulf War.
In the last week four travel agents have ceased trading.
Astley Bridge Travel in Bolton has gone into liquidation, Storrington-based West Sussex Travel ceased trading on November 2, unable to meet payments, Bournemouth-based Excelsior World Travel has gone bankrupt, unable to meet payments and Excelsior Holidays has also ceased trading.
Five ABTA tour operators have also failed since September 11.
They are: Keystone Leisure, Lawson Interline Travel, Sunrise Holidays, Amos James Associates and Special Places Travel.
ABTA is advising agents having difficulty with their business rates to contact their local authority, which may be able to offer relief of up to 100%. It is also urging tour operators eligible for a loan to apply to the Small Firms Loan Guarantee Scheme. The association has written to the Department for Transport, Local Government and the Regions asking for help with the cost of insurance bills.
ABTA has also called on theGovernment to review Air Passenger Duty and to put some of the money back into the industry.