Maltese hotels resist Thomas Cook payment cut

Maltese hoteliers as well as hoteliers in Spain, are resisting moves by UK tour operator Thomas Cook to slice 5% off payments.

The Malta Hotels and Restaurants Association (MHRA) has advised its members not to do anything that confirms agreement to the cut and to "stick to their guns" to demand payment in full, industry website Travel Weekly said.

Last Friday, Thomas Cook staff contacted hotels in several European countries, including Greece, Spain and Malta, saying they would be paying 5% less than contracted in August and September due to a difficult summer and the ash crisis.

Thomas Cook did not make on official comment, but insisted it had been liaising with affected hotels individually and had been "encouraged by the majority of feedback we've received" after "initial concern".

However, Spanish hotel associations have threatened legal action and the Canary Islands government has asked the Spanish government to intervene, Travel Weekly said.

George Schembri, chief executive of the MHRA told the website: "This is not the way to do things. It's unethical the way they are doing this. We have contracted rates. You don't see Thomas Cook giving us a 5% bonus when they are doing well.

"If they have a problem, they should come to us to ask for a contribution, not withhold payment. Rates have dropped considerably and we are coming out of a very bad year and carrying losses.

"It works both ways. We are very glad to have Thomas Cook on the island and we would like to keep working with them, but not in this manner."