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The State will guarantee refunds for tourists when ministers approve support for travel agents affected by the Covid-19 crisis.
Onismism Minister Shane Ross brought plans to protect the travel industry to the Cabinet.
Aid will be presented as a State guarantee, in the form of a refund credit note for holiday packages booked through registered travel agencies and tourist operations in Ireland.
The travel industry may offer the notes to customers in circumstances where they cannot provide a cash refund or a full cash refund.
The credit note can be for the value of the full refund, or a partial refund along with cash.
It will be redeemable for its cash value after six months and can be used to reserve a replacement holiday at any stage. The credit note will be guaranteed by the State in the event that the travel agent or tour operator declares insolvency.
Ross said these are very difficult days for consumers who have booked vacations.
He also said that it has been difficult for the tourism industry and for many travel agents and tour operators.
The refund credit note is said to be an attempt to strike a balance between avoiding bankruptcy across the sector with associated job losses and consumer rights.
“Travel restrictions imposed in response to the pandemic have led to widespread cancellation of vacations during March, April and May, and many people had to postpone vacation, wedding and honeymoon plans,” Ross said.
He added that under the EU Travel Package Directive, people who have had to cancel reservations are entitled to a cash refund, and that right will remain valid.
“However, it is also the case that many travel agencies and tour operators have serious cash flow problems, and it is not clear that everyone can meet all their current cash refund obligations and at the same time be able to remain in the business, “he said.
“Therefore, the Government has agreed to endorse a new refund credit note that travel agencies and tour operators can offer their clients.”
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Irish independent
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