A draft emergency ordinance, which will regulate the activity of travel agencies in Romania, provides new rules for guaranteeing vacations purchased by tourists. In addition, the fines applied to travel agencies will increase tenfold.
Travel agencies in Romania will have four options to insure the vacation packages sold to tourists, according to a draft emergency ordinance worked on by the National Authority for Tourism (ANT), together with the National Authority for Consumer Protection (ANPC), and the National Association of Travel Agencies (ANAT), as well as other industry players.
Alin Burcea, president of ANAT, stated that according to the ordinance, the concept of tour operator and retailer is being abolished. The one creating the package will be called an organizer, and the other will be called a merchant or intermediary. The second thing introduced in this ordinance is the definition of insurable turnover, which is the total amount sold to tourists.
Thus, retail agencies, which currently can insure clients’ vacations up to a limit of 10,000 USD, will be required by the new ordinance, which amends GEO 107/1999, to be insured up to a limit of 50,000 USD, as tour operator agencies currently do.
The president of ANT, Anca Pavel-Nedea, specified that new contraventions that did not exist before have been introduced in the ordinance, and fines have been increased to between 4,000 and 10,000 RON compared to the old ones, which were ridiculous.
The new ordinance also provides for the introduction of alternative guarantee instruments: “guarantee systems in case of insolvency or bankruptcy of travel agencies can be represented by bank guarantee letters, participation in a national guarantee fund, insurance policies, or other legally established financial discipline instruments," according to the document cited by the ANT president.
If the travel agency wishes to contribute to the Guarantee Office, the contribution is 15% of the insurable turnover, meaning the total value of tourist packages sold to individuals.
“Corporate packages will not be included, because there is a company at the end of the contract; incoming is not included, because tourists are insured from there; and flight tickets are not included, because we pay to IATA anyway,” Alin Burcea specified.
The Guarantee Office is intended to be an independent institution, whose task will be to control travel agencies and compensate tourists in case of bankruptcy.
ANAT proposed that this Office be led by an executive director, but also by a Council consisting of seven members, including four people from the industry and representatives from the Ministry of Finance, ANPC, and ANT.
ANAT and ANT did not specify when this new ordinance might be approved, but officials hope it will pass by the end of the Cioloș government’s mandate.
Source: Economica
Frequently Asked Questions
What is the proposed Guarantee Office?
The Guarantee Office is intended to be an independent institution tasked with monitoring travel agencies and compensating tourists in the event of insolvency or bankruptcy.
How much will fines for travel agencies increase?
According to the draft ordinance, fines will increase tenfold, ranging between 4,000 and 10,000 RON for various violations.
Which services are excluded from the guarantee contribution?
Corporate packages, incoming tourism, and flight tickets are excluded from the calculation, as they are either covered by other contracts or regulated by IATA.