Troubled tourism hot spots could cost the travel giant up to £30 million.
Events in the popular winter sun destinations of Egypt and Tunisia have soured the good news that the company made a smaller than expected pre-tax loss for the end of 2010.
The travel group who owns Thompson Holidays and First Choice claim to be carefully monitoring the situation while assisting customers to rebook alternative holidays.
They have also revealed that it has cancelled all holidays to Egypt that are not departing from the UK.
Tui made a pre-tax loss of £134 million in 2010 a considerable improvement on 2009’s figure of £166 million. If the firm have to cancel trips to Egypt the outlook for 2011 is not bright.
Halting flights to the turbulent country will cost Tui £20 million. A further £5 million will be lost if, as other countries have, the UK government warns against travel to other Red Sea resorts. The last £5 million is set to come from the cost of cancelling holidays to and returning travellers back from Tunisia.
Sources at Tui have said it has been a good start to 2011 and bookings were strong. They added “We remain cautious, however, given the current economic and geopolitical uncertainty”.
As unrest persists in the region, is there now cause for the government to advise against traveling to other Red Sea resorts?