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The tourism business has been particularly affected by the bans issued to control the coronavirus pandemic. Travel sales have become nearly nil, and customers who have previously purchased travel demand a refund. Tour operators must return the money for the canceled trip within 14 days. Seimas wanted to extend this mandate to half a year, but the president vetoed such amendments. Now, the parliamentarians intend to extend this term again, up to 3 months.
“It’s not that tour operators keep time and don’t give away travelers’ money, they just don’t have it now.” 15min last week said Milda Plepytė-Rainienė, Executive Director of the Lithuanian Tourism Association (LTA). It has been said that companies don’t even talk about profit: Tour operators are simply asking for help to survive and not be forced to file for bankruptcy.
But Kidy Tour said Tuesday that such statements about the financial situation of some of the organizers were “fatalistic and highly hyperbolized messages.”
Kidy Tour: money to eat
“Even in such a situation, large tour operators, including the Kidy Tour, do not have the moral right to ask for state support, as this would simply distort the tourism market,” Gvidas Aukštuolis, CEO of the company, said in a press release on Tuesday.
According to him, tour operators demand state support “not to settle accounts with customers, but to have the funds to” eat “, in other words, to maintain premises, cars and other properties.”
Vidmantas Balkūnas photo / 15min photo / Aukštuolis Guide
Vilma Vaitiekūnaitė, representative of Avia Solutions Group, owner of Kidy Tour 15min He commented more broadly on the position of the company. “All the big tour operators have activity insurance, which guarantees that if some kind of cataclysm occurs, they will be able to settle with travelers. Another thing: there are also bank guarantees.
In principle, a tour operator does not need their own money to come to terms with travelers, even if everyone has to pay that money. It is in this case who needs it, that is, to maintain the infrastructure. (…) They position themselves this way: if they pay (for customers – ed.), Then there will be a problem. None of that, ”said V. Vaitiekūnaitė.
There are around 400 tour operators in Lithuania, all their obligations to travelers amount to 31 million. euros
LTA Executive Director M.Plepytė-Rainienė 15min He explained that the special insurance of all the tour operators would allow the reimbursement of the clients in case of insolvency. “It ensures that all traveler contributions are secure. Insurance and bank guarantees also apply to issued travel vouchers. In the event of bankruptcy, clients would also recover their premiums, but this would definitely take time due to lengthy procedures. “, said.
Accused of using legal illiteracy of clients
Kidy Tour also received a message from clients of other organizers that they had decided not to return the money within 14 days; They await further decisions from Seimas regarding the extension of the term. V.Vaitiekūnaitė stated that the organizers allegedly use the legal illiteracy of clients who want to recover money.
Photo from 123rf.com/Travel
“Amendments not accepted, reimbursement period of two weeks. Organizers are motivated by the fact that the decisions are not final, new legislation has been submitted, the situation is not final, – explained the representative of” Kidy Tour “. – But the current legislation is one that requires them to return the money within that period. The fact that there are amendments somewhere in the Seimas does not modify in any way the obligation of the tour operator and the obligation to return the money according to the procedure provided by legal acts. “
According to her, Kidy Tour reimburses her clients’ money and offers coupons that have been validated by Seimas only if the client wishes.
“We are monitoring the situation, we are not trying to lie to anyone, as it will go somewhere here in October, because even the largest companies in the world cannot guarantee that there will not be a second wave and we will really be able to drive,” said V. Vaitiekūnaitė.
It is the deadline for reimbursing customers for trips canceled due to the pandemic that LTA calls one of the most important tools to help the tourism business. Although extending the deadline would violate the European Commission directive, many EU countries have taken such measures, arguing that there are now exceptional circumstances.
“This request is supported by the fact that the current regulation is not adapted to the situations we have today. Its essence is a request to postpone obligations to clients for a longer period than usual,” explained M.Plepytė- Rainienė.
Photo from 123rf.com/Travel insurance
She emphasized that the association is in favor of sustainable aid measures, those that would cost the state as little as possible and would help businesses as much as possible. This, in the words of the LTA chief, has already taken many steps on its own initiative to adapt to current circumstances.
The LTA has entered into a dialogue with the government, but has so far been reluctant to comment on the plan to support tourism businesses, which it promises to do when presented to the public.
V.Vaitiekūnaitė assured that Kidy Tour has no plans to use this plan.
Biggest problem: for small travel agencies?
Kidy Tour says more help is needed not only for large tour operators, but also for travel agencies, which do not organize tours themselves, but only sell packages created by others.
“We will save the greats and let the little ones die.” 15min V. Vaitiekūnaitė commented.
“Because there are no new contracts during this period, and the tour sellers do not receive any revenue, which is often just commissions, from the tour operator when they sell their trips, this crisis is a survival game for them.” Therefore, state support should go to small travel agencies first, ”the press release quotes the company’s director, G.Aukštuolis.
We will save the great ones and give the little ones to die, – commented V. Vaitiekūnaitė.
LTA: Tourism has probably suffered more
Other representatives of the tourism business do not agree with such accusations that they are only addressed to the main tour operators. The situation of the tourism business during the coronavirus crisis is also assumed to be exceptionally poor.
Photo from 123rf.com / Bad vacation
“Quarantine and travel insurance have affected all participants in the tourism market. Both outbound and outbound and inbound tourism, 15min commented the president of the National Association of Tourism Companies Žydrė Gavelienė. – Therefore, the design of support measures for the tourism sector must evaluate the three segments and ensure that it is aimed at all actors in the sector, not only tour operators and agencies, but also accommodation and catering establishments. and others.
Of course, the problem of the agreement of the tour operators with the consumers is especially important due to the exclusive legal regulation and the considerable financial volume, reason why the government assistance, like the loans without interests, is very important here “.
Tourism suffers losses not due to its inappropriate activities, but due to the pandemic caused by the virus and the restrictions introduced to handle the crisis, – explained M.Plepytė-Rainienė.
LTA Executive Director 15min He said that although the pandemic had a negative impact on most companies, tourism was probably the largest. “Realizing this, many European countries have already made decisions to help companies, so it is natural that this is also expected from Lithuanian state institutions, they are already taking the first steps,” he said.
“Today, tourism suffers not from its own misconduct, but from the pandemic caused by the virus and the restrictions imposed to handle the crisis., – explained M.Plepytė-Rainienė.
The Ministry of Economy and Innovation is preparing a plan to help the tourism business, which has been badly affected by the coronavirus. Deputy Minister of Economy and Innovation Elijus Čivilis told BNS that the plan will include not only measures to reduce damage to the sector, but also how to encourage it to restructure. The package is expected to be discussed at a government meeting on Wednesday.
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