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Government loans for refunds to travellers

Published

The situation facing the package tour industry is serious. The pandemic has created a situation in which many travellers have not received refunds for cancelled trips. The Government is therefore now working on a proposal for government loans to package tour operators with the aim of enabling these operators to refund remaining debts to travellers. The proposal is based on an agreement between the government parties, the Centre Party and the Liberal Party.

Under current legislation, travellers are entitled to a refund within 14 days if a package tour is cancelled. Travellers can also cancel a package tour free of charge and are entitled to a refund if it is significantly affected by unavoidable and extraordinary circumstances.

The pandemic has meant that package tour operators must refund large sums of money during a short period of time, regardless of whether they have received corresponding funds from their subcontractors or not, for example from hotels and airlines. Package tour operators still owe debts to travellers for trips that have not taken place. To make it possible for operators to refund money to travellers, the Government is therefore now proposing an option for government loans. The intention is for the loans to be available in the spring of next year.

It is proposed that the Legal, Financial and Administrative Services Agency, which is responsible for the travel guarantee system for package tours, should be the administrative authority.

Press contact

Sara Khatemi
Press Secretary to the Minister for Enterprise and Innovation Ibrahim Baylan
Phone (switchboard) +46 8 405 10 00