Tourism: About 70% of firms active in Romanian tourism have financial difficulties

Most companies in the field of tourism (68.6%) have financial difficulties, while total debts of some companies grew by over 30%, from 1.82 million lei in 2014 to 2.41 million lei in 2015, according to a specialised analysis made by Keysfin, released on Thursday.

According to the source, 1,938 out of 2,825 firms active in the field of tourism (68.6%) register financial difficulties. 1,088 companies have negative capital (39%), 850 have a high debt degree (30%), 748 have operational losses (26%), while 1,120 companies (40%) have a cash flow level below the one accepted and 514 represent companies with suppliers with late payments.

Statistic data, processed based on official information sent to the Finance Ministry show that there are 472 travel agencies and tour operators whose debts grew between 2014-2015.

“We supervise 401 companies where debts have grown over 50% this year while 103 companies marked a negative evolution between 30 and 50%. 261 firms in the field of tourism have debt increases but at a lower level. There are over 1,000 firms in tourism throughout the country with negative capital. That means they have registered losses reported every year and/or shareholders withdrew the profit not invested in the activity of the company. Moreover, there are many companies which pay suppliers with delays and that may lead to financial gridlock, insolvency and even bankruptcy,”Keysfin experts say.

According to the analysis, based on financial data, 30 companies were identified in a similar situation as the one that led to the insolvency of Genius Travel.

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