Is Biblio Globus heading into bankrupcy?

Last week, a Russian airline that is used by Biblio Globus went into bankrupcy, sending shock waves through the Cyprus tourist industry, already poised on the brink of collapse.

Would Russian tourists get home, would more Russian tourists come?

Thanks to the insanity of Vladimir Putin invading Ukraine, the Russian economy has collapsed, the rouble has collapsed.

Gas, a major Russian foreign currency earner, the markets for the gas are looking to alternatives, fracking, solar and other renewables. In Germany, the biggest market for Russian gas, several hundred community owned and controlled local grids have been created, supplied by renewable enegy. E.ON has stated it cannot compete with local grids.

The attacks on Syria, Putin opening a second front, caused the rouble to collapse by 50% in a single day.

Russian tourists pay Biblio Globus in roubles, Biblio Globus pays out in euros, euros which have to be bought with worthless roubles. Unless Biblio Globus has a cash mountain, or the banks will bail out Biblio Globus, how will it pay the hotels?

Already one hotel has not been paid. The hotel refused to serve breakfast, Biblio Globus bussed out its tourists, and is ironically suing the hotel. The hotel, with an exclusive contract with Biblio Globus, now sits empty.

A boat had not been paid for boat trips. Biblio Globus refused to pay. Biblio Globus was sued for the money owed.

How many hotels are owed money by Biblio Globus? How many will get paid?

What this highlights is the crass stupidity of dependency on a small number of tour companies, or even dependency on tour companies, when the internet makes direct booking so easy. Too many hotels are operating as though still in the 1960s.

Why are tourists booking trips through tour companies, not booking direct?

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One Response to “Is Biblio Globus heading into bankrupcy?”

  1. keithpp Says:

    Floating rouble and progressive nationalism
    https://keithpp.wordpress.com/2015/12/31/floating-rouble-and-progressive-nationalism/

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