Even though the Ministry of Tourism has prepared a normative act applying the European Directive that obliges states to fully ensure the money paid in advance by tourists, more than half of the vacations sold by Romanian agencies do not benefit from such protection measures because they do not fall under the „tourist packages” category. This refers to all domestic and international vacations where tourists buy only accommodation and meals from the agency, not transport.
Currently, tour operator agencies in Romania are legally required to insure $50,000 of tourists’ money in case of insolvency, and vacation reseller companies – only $10,000.
„At the moment, the Directive does not solve the problem for which it was issued. We hope that in the next six-month period we can adapt it and find efficient implementation tools. We have no other proposals than to be able to associate the guarantee made through insurance policies, which will cover only part of the money, and to complete the rest through a mutual fund that we, the travel agencies, will create. Without the guarantee policy and without the mutual fund, there is no one to fully ensure the tourists’ money,” stated Nicolae Demetriade, president of the National Association of Travel Agencies (ANAT).
The draft normative act radically changes the way tourist packages are guaranteed, because the responsibility now falls only on the tour operator, and what it also totally modifies is the amount to be reimbursed to tourists in case of agency insolvency. Until now, the amount divided among tourists was limited to $50,000, and now this maximum limit disappears and can be any amount, depending on the cumulative value of the vacations that could no longer be honored.
Source: Profit
Frequently Asked Questions
What is the main risk for tourists buying partial travel services?
They risk not receiving a full refund if the travel agency becomes insolvent, as services including only accommodation or only transport are often not classified as fully protected “tourist packages.”
What are the current insurance limits for Romanian travel agencies?
Currently, tour operators are required to insure $50,000, while reseller agencies only $10,000, amounts that may be insufficient to cover all potential losses.
What changes does the new draft normative act introduce?
The project removes the $50,000 maximum cap for reimbursements and shifts full responsibility to the tour operator, theoretically ensuring the full recovery of amounts paid by tourists.