Thomas Cook India is not a part of Thomas Cook UK, the travel giant which went bust on Monday. Thomas Cook India was acquired by Canada-based Fairfax Financial Holdings in 2012 and since then Thomas Cook India ceased to be a part of Thomas Cook UK.
Yet, shares of Tomas Cook India fell for the second session on Tuesday and it’s apprehended that this is not the only cascading impact of the UK tourism giant going kaput will be felt in India.
India’s inbound tourism, too, is likely to take a hit.
According to an IANS report, Thomas Cook UK used to send a lot of high-spending tourists to Indian from the UK, Germany, France and Italy. UK’s share into India’s total foreign tourist arrivals was 8.01 per cent ion August 2019.
Hence, forex earning will be hit in the months to come.
Hotels in Goa are expected to slash their rates as a number of their customers were channelised through Thomas Cook UK.
Thomas Cook, the world’s oldest travel company, was founded in 1841. Of late, it was facing challenges as a number of online travel portals. agents have mushrooms. Travellers have started planning their trips as weel. The company went into deep debt to the tune of USD 2.5 billion.
According to BBC, the burden of its debts forced Thomas Cook to enter into last-minute negotiations with stakeholders to obtain an additional stimulus of around USD 250 million. These talks failed, causing the company to collapse. The company on its website said that “it had no choice but to take steps to enter into compulsory liquidation with immediate effect”.
The collapse will affect over 22,000 jobs, including 9,000 in the UK
Over 6 lakh tourists travelling with Thomas Cook UK are stranded around the world. The operation to bring them back has been codenamed as Operation Matterjhorn — the biggest of its kind in peacetime in British history.