Thomson-TUI giant will be good for future of tourism

The chairman of Preussag, the Germany company which owns the country's leading tour operator TUI, and is in the process of completing the purchase of British tour operator Thomson, Michael Frenzel, yesterday said in Palma that the hoteliers have no need to be concerned about the consequences of TUI's purchase of Thomson. Majorcan hoteliers have expressed their fears that as Europe's leading tour operators spread their corporate wings, the Majorcan market will become dominated and controlled by three main tour operators, which in turn will reduce the hoteliers´ bargaining powers. However yesterday, Frenzel, in a meeting with Balearic Chief Minister Francesc Antich and the Tourism Minister Celesti Alomar, tried to expel any fears saying “TUI and Thomson clients demand the same level of quality and the only repercussion from TUI buying Thomson will be a better relationship between the two tour operators.” Alomar agreed that the merger will have positive effects on the island's industry, saying that it will be able to help the decentralisation of the market and spread tourists throughout the year “which is the intention of both TUI and the government.” Thomson clients may also help TUI compensate for a slight slump in German bookings to the Balearics.