no balearics capacity rise until 2004

CAPACITY will not be increased in the Balearics until at least 2004, a Thomas Cook boss has warned.

Managing director of tour operations Manny Fontenla-Novoa said sales to the region were poor because of high prices and the fact that the family market is not booking. He warned unless prices dropped, capacity would be cut.

He added poor sales to the Balearics was an industry-wide issue, not confined solely to Thomas Cook.

“We have no intention to increase capacity to the Balearics, and unless they do something about the way they deal with UK operators, there will be capacity cuts,” said Fontenla-Novoa.

The warning comes as tour operators draw up contingency plans to cope with a series of strikes planned by hotel workers in the Balearics this summer.

Up to 60,000 chambermaids, bar staff and restaurant workers are expected to join the walk-outs in a dispute over pay. The first action is set for July 26 and 27, with two more three-day strikes pencilled in between August 5 and 16.

Although Spanish unions were still in talks with hoteliers as Travel Weekly went to press, efforts to keep employees in work are expected to fail. A 3.5% pay rise has been offered to staff, but unions are holding out for at least a 5% increase.