'The most tragic events in 30 years': Tunisia and Sharm el-Sheikh are now 'ghost towns' as world's biggest tour operator reveals devastating impact terror attacks have had on business

The world's biggest tour operator has revealed that terror attacks have left Tunisia and Sharm el-Sheikh like 'ghost towns' as it reflects on the financial hit on business.

The boss of Thomson and First Choice owner TUI said the beach massacre in Tunisia that claimed the lives of 33 of its customers was the 'most tragic' event in his 30-year career as the group laid bare the financial impact of recent terrorist attacks.

The travel giant took a £37.6 million (€52 million euro) hit from the Tunisia attack in June and changed its recommendations for the year ahead after cancelling all flights to Sharm el-Sheikh in Egypt following the terrorist bombing of a Russian airliner last month.

Scroll down for videos 

Following the terror attack in Tunisia, the numbers of holidaymakers visiting has plummeted

A memorial for the British and foreign tourists killed now stands at the scene of the massacre in Sousse, Tunisia

Peter Long, joint chief executive of TUI Group, said the past year saw the group experience 'the most tragic event that I've ever had to deal with in my 30 years in the industry'.

He added: 'The horror of it is something that will live with us, and me, forever.'

But he praised the staff's handling of the tragedy, which saw the group fly home tourists from the North African country and cancel all holidays there, with the UK Foreign Office and other governments still advising against visits.

TUI boss Peter Long has said that resorts in Tunisia and Sharm el-Sheikh are like 'ghost towns'

The group said its hotels and resort arm saw a £18.8 million (€26 million) impact from the Tunisia beach attack, with another £12 million (€17 million)  put by to cover prepayments for accommodation in the area.

In August, TUI confirmed the cost of flying tourists home from the North African country was £7.2 million (€10 million).

Strong trading and currency exchange rates helped it offset the cost as it posted a 23 per cent leap in underlying earnings to £775 million (€1.07 billion) for the year to the end of September.

But the group said the ongoing cancellation of flights to and from Sharm el-Sheikh was now expected to see current year earnings rise by at least 10 per cent, against previous expectations for an increase of 12.5 per cent to 15 per cent.

TUI has 13 hotels in Sharm el-Sheikh, with the resort accounting for half of its business in Egypt.

Mr Long said resorts in Tunisia and Sharm el-Sheikh were like 'ghost towns' following the attacks, adding it remains to be seen if it will ever fully recover.

TUI has 13 hotels in Sharm el-Sheikh, with the resort accounting for half of its business in Egypt. 

Sharm el-Sheikh, once a popular holiday destination for Britons, is now a 'ghost town' following the bombing of a Russian aircraft out of the Egyptian resort's airport

Mr Long said resorts in Tunisia and Sharm el-Sheikh were like 'ghost towns' following the attacks, adding it remains to be seen if it will ever fully recover. 

Holidaymakers have been switching to destinations such as the Canary Islands as well as long-haul resorts, with demand increasing for holidays to Mexico, Mauritius and the Caribbean.

TUI said long-haul bookings were up 16 per cent for the winter season. 

TUI boss Peter Long praised the staff's handling of the tragedy, which saw the group fly home tourists from Tunisia in the aftermath and cancel all holidays there