Hoteliers plan to take German tour operator to court

Majorcan hoteliers plan to take German tour operator LTU to court for failure to pay guaranteed contracts over the summer, which come to a total of more than 1'000 million pesetas, according to hotel federation sources. It is alleged that LTU, after making the first payments, advised some hoteliers by letter that it was cancelling the guaranteed contracts, alleging that the measure was due to restructuring the company and to prevent greater losses. The Majorcan hoteliers federation has expressed its concern at the situation. Part of the money owed will be paid under an insurance policy taken out by Zontur, the hoteliers association. The German tour operators have been unable to sell all their guaranteed places because of the crisis this summer.