The bankruptcy of Europe’s third-largest tour operator FTI Group will adversely impact tourist bookings in Cyprus, hotel industry officials warned on Monday.

FTI filed for insolvency in the Munich regional court on Monday, the German company said in a statement, as bookings continued to fall even after a recent one-euro buyout proposal.

Reuters reported that in addition to sinking orders, multiple suppliers insisted on advance payments, which FTI is no longer able to provide.

The group has opened a hotline and a website for customers, the company statement added.

It will have to either cancel or complete only partially all trips from June 4, potentially affecting thousands of holidaymakers at the beginning of the travel-busy summer season.

The German foreign ministry said the tourism industry and travel insurance fund would take care of repatriating and supporting the tourists affected but that it would provide consular support if necessary to ensure a safe return.

For Cyprus the development could affect up to 30,000 hotel bookings, said Filokipros Rousounides, the general manager of the hoteliers association.

Speaking to local media, Rousounides said FTI works with around 160 hotels in Cyprus.

The company going bust would affect Cyprus’ reach into the tourist market in Germany, and to a lesser extent in Austria and Switzerland where FTI also has offices.

According to Rousounides, although the estimated 30,000 bookings affected is a small number in the grand scheme of things, it marks yet another blow to hoteliers in Cyprus in what’s shaping out to be a tough year for tourism. The instability in the region due to the conflict in Gaza, as well as the economic downturn in the UK – a major tourism market for Cyprus – and the upcoming Olympic Games in Paris will all take a toll on arrivals.

“A snapshot of the slowdown in bookings shows that overnight stays [in hotels] currently appear lower than last year,” said Rousounides, estimating the overall decline at 10 per cent.

Citing sources, the Stockwatch news outlet reported that FTI would soon be notifying customers that all bookings would be canceled as of Tuesday.

FTI employs 11,000 people worldwide and offers tours to more than 40 destinations around the world, including through its 10,000 partner agencies in Germany.

In the 2022/2023 financial year, it reported annual sales of around €4.1 billion.