The state will guarantee reimbursements to vacationers while ministers approve support for travel agencies affected by the Covid-19 crisis.
Ourism Minister Shane Ross presented travel industry protection plans to Cabinet.
The assistance is provided in the form of a state guarantee, in the form of a reimbursement credit note for package travel booked with travel agents and excursions registered in Ireland.
Tickets may be offered by the travel industry to customers in circumstances where they are unable to provide a cash refund or a full cash refund.
The credit note may correspond to the value of the full refund or a partial refund in addition to the cash.
It will be refundable for its cash value after six months and can be used to book a replacement stay at any time. The credit note will be guaranteed by the State in the event of the insolvency of the travel agent or tour operator.
Ross said these are very difficult days for consumers who have booked vacations.
He also said that it had been difficult for the tourism industry and for many travel agents and tour operators.
The repayment credit note would be an attempt to strike a balance between preventing the bankruptcy of the sector with the associated job losses and the rights of consumers.
“Travel restrictions imposed in response to the pandemic have led to the widespread cancellation of vacations in March, April and May, with many people having to postpone their vacation, wedding and honeymoon plans,” said Mr. Ross.
He added that under the EU Package Travel Directive, people who have had to cancel reservations are entitled to a cash refund, and this right will continue to apply.
“However, it is also true that many travel agents and tour operators face serious cash flow problems, and it is not certain that they will all be able to meet all of their current obligations to repay cash and at the same time be able to continue working, “he said.
“The government has therefore agreed to support a new refundable credit note that travel agents and tour operators can offer to their customers.”
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