The package holiday market to the Algarve has been dealt a blow after Thomas Cook and Tui Travel scrapped their winter programmes blaming lack of demand.
The news comes as Algarve hoteliers prepare to join Spanish counterparts in taking legal action against Thomas Cook over its unilateral 5% cut in payments for August and September.
The cancellation of the big two’s winter operations comes at a difficult time for Algarve tourism, which suffered a 30% fall in UK bookings in summer 2010 due to the recession and strong euro.
Eliderico Viegas, president of the Algarve Association for Hotels and Tourist Resorts (Aheta), said the destination has been struggling to compete with countries such as Turkey that offer more all-inclusive options.
He said: “There is no doubt that this will lead to unemployment as hotels are forced to close over the winter.”
Tui will start its Algarve programme in March, while Thomas Cook will begin in April.
Low-cost carriers will go some way to filling the void. EasyJet operates nine routes to Faro and Ryanair runs 10.
Aheta is planning a campaign to promote independent travel to the region. Viegas said: “Last year, 48% of visitors to the Algarve were on package holidays – this will certainly go down.
“We will be campaigning to send the message to customers that they can still come to the Algarve on low-cost carriers.”
Meanwhile, Aheta has pledged to take legal action against Thomas Cook’s controversial move to reduce August and September payments by 5%, a move it blamed on the costs of the volcanic ash cloud.
Viegas said: “The tourism industry is based on mutual trust. Such a decision undermines the entire foundation of this business. It is totally unacceptable.”