Tour operators allowed to refund cancelled tours within six months

Press release, 9 April 2020 

Under the special urgency procedure, the Seimas adopted amendments to the Law on Tourism and the Civil Code (draft laws No. XIIIP-4694(2) and No. XIIIP-4693(2)) allowing tour operators to refund cancelled tours not later than within six months, in contrast to a 14-day period applied so far. This provision will target tourists who do not opt for travel vouchers specified in the amended Law.

The adopted amendments will also enable tour operators, which have experienced difficulties owing to the COVID-19 situation, to offer tourists a voucher, as an alternative, covering the value of the amount paid for the cancelled tour.  

This, according to the initiators of the proposed amendments, is aimed at safeguarding tourism business and travellers’ funds and ensuring that tourists do not lose the money paid while tour operators keep their jobs and avoid bankruptcy or insolvency.  

As Žygimantas Vaičiūnas, Minister of Energy and Acting Minister of Economy and Innovation, observed earlier, tour operators are facing serious financial and administrative challenges since the majority of tourists claim refunds for cancelled tours while the money has already been paid to actual service providers abroad, including accommodation, transport, and leisure service providers. As a result, tour operators incur an excessive risk related to both the obligation of refund and the obligation of refund within the established period of 14 days.

The adopted amendments establish an alternative way to refund tourists for cancelled tours by offering additional travel services of the same value. The terms and conditions of the travel voucher, which will be valid for 12 months, will be set forth in the Law on Tourism. A future tour purchased with the travel voucher will be subject to the same terms of performance of obligations as applicable to a tour purchased for money. If the tourist fails to use the voucher within 12 months, the tour operator will have to reimburse for the money spent by the tourist within 14 days from the expiry of the voucher.          

According to the Ministry of Economy and Innovation, data from the State Consumer Rights Protection Authority shows a total of 252 tour operators in Lithuania, including 116 engaged in outbound tourism, 40 in domestic tourism and 96 only in inbound tourism.