Information regarding amendments to Cabinet Regulation No. 380 of Cabinet of Ministers June 2018, Regulations regarding the procedures for the Preparation and provision of a complex and related Tourism Service and the Rights and obligations of providers of complex and related Tourism services and travellers.
the Consumer Rights Protection Centre (CRPC) of the informs that the Cabinet Regulation No. of 22 November 2022 came into force on 29 November 2022. .730 “Amendments to Cabinet Regulation N of 26 June 2018” R.. 380 “Regulations regarding the procedures for the Preparation and provision of a complex and related Tourism Service and the Rights and obligations of providers of complex and related Tourism services and travellers” (hereinafter - Amendments) https://law.lv/ta/id/337438 https://likumi.lv/ta/id/337438 https://likumi.lv/ta/id/337438 https://likumi.lv/ta/id/337438
The purpose of the amendments is to improve the regulatory framework regarding the rights and obligations of providers of complex and related tourism services, tourism agents and travellers, ensuring clearer and more proportionate regulations for the amount of provision of tourism operators and providers of related tourism services, as well as the right of the CRPC to both request the information necessary for supervision and respond accordingly, if non-conformities with the requirements of regulatory enactments have been determined.
Taking into account the abovementioned aspects, the CRPC shall inform regarding the most significant changes:
Additional requirements for the receipt of a special permit (licence) have been specified: such tourist agent, tourism operator or provider of related tourism services, which has been subject to a procedure in case of liquidity, as well as the CRPC has not taken a decision to cancel the licence in case of violations, may not receive a licence;
- the tourism operator and the provider of related tourism services shall additionally submit information regarding the planned activity in the next six months, a standard information form, pre-contractual information and a model contract for travellers for the receipt of a licence;
- in order to receive a licence, the liquidity coefficient for the current or last reporting year of a tourism agent, tourism operator or provider of related tourism services shall be greater than 1.
Important: for tourism operators, tourism agents and providers of related tourism services who have received a special permit (licence) or are registered in the database by 1 January 2023, this condition shall be applied from 1 January 2024;
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- new forms for licensing of the tourism agent and tourism operator and registration of the provider of related tourism services in the database have been approved.
Specified and supplemented requirements for the amount of collateral:
Tourism operators and a provider of related tourism services that does not offer passenger transport must ensure that:
- the amount of the security shall not be less than the amount of advance payments made on behalf of travellers or travellers for packages and related tourist services;
- in addition, it shall be ensured that the amount of the security is at least 5% of the turnover of the package or related tourism services in the previous reference year, but not less than:
- EUR 3 000, if tourism services are provided only in the territory of the Republic of Latvia;
- EUR 5 000 if tourism services are provided only in the territory of the Republic of Latvia, the Republic of Estonia and the Republic of Lithuania;
- EUR 15 000 if tourism services are provided outside the territory of the Republic of Latvia, the Republic of Estonia and the Republic of Lithuania;
- EUR 30 000 where tourism services are provided in a country other than that of the European Union or of the European Economic area, the Swiss Confederation or the United Kingdom;
- EUR 200 000 if the tour operator organises Charter flights.
Providers of related tourism services offering passenger transport must ensure that:
- the amount of the security shall not be less than the amount of advance payments made on behalf of travellers or travellers for packages and related tourist services;
- in addition, it shall be ensured that the amount of the security is at least 10% of the turnover of the related tourism services in the previous reference year, but not less than:
- EUR 5 000, if tourism services are provided only in the territory of the Republic of Latvia;
- EUR 10 000 if tourism services are provided only in the territory of the Republic of Latvia, the Republic of Estonia and the Republic of Lithuania;
- EUR 20 000 if tourism services are provided outside the territory of the Republic of Latvia, the Republic of Estonia and the Republic of Lithuania;
- EUR 50 000 where tourism services are provided in a country other than that of the European Union or of the European Economic area, the Swiss Confederation or the United Kingdom;
- EUR 200 000 if the provider of related tourism services organises Charter flights.
important: If no new security has been received one month before the end of the term of the security, the tourism operator or provider of related tourism services has a duty to refund all the money paid in by travellers or, if possible, to offer to travellers the performance of the tourism services purchased until the end of the term of the current security. .
Additional requirements to be ensured after receipt of a special permit (licence), registration in the database shall be specified:
- the liquidity ratio for the current or last accounting year must be greater than 1.
Important: for tourism operators, tourism agents and providers of related tourism services who have received a special permit (licence) or are registered in the database by 1 January 2023, this condition shall be applied from 1 January 2024;
- the tourism operator and the provider of related tourism services have the possibility to provide additional security for a shorter period, but not shorter than three months, if due to seasonality of the service the amount of the advances received is higher than provided by the basic insurance contract or guarantee of the credit institution within a specified period of time;
- two months before the expiry of the validity of the existing insurance contract or credit institution guarantee, the tourism operator and the provider of related tourism services shall submit a new insurance contract or credit institution guarantee to the CRPC for the next period.
Important: for tourism operators and providers of related tourism services who have received a special permit (licence) or are registered in the database by 1 January 2023, the new amounts of the security shall be applied from 1 July 2023, ensuring, if necessary, amendments to the insurance contract.
- the tourism operator and the provider of related tourism services have the right to request the provision or other guarantees of their co-operation tourism agents in favour of the tourism operator;
- a tourism agent does not have the right to sell packages or related tourism services, and a tourism operator or provider of related tourism services does not have the right to accept relevant service bookings from a tourism agent with which a contract has not been entered into and which has not received a special permit (licence).
In addition, the CRPC informs that the amendments have made clarifications to the requirements of the insurance contract, with the CRPC rights taking a decision to cancel, suspend and exclude a special permit (licence) from the database of tourism service providers, as well as specify the procedural rules in case of liquidity of the tourism operator.
Please consult the full text of the provisions in force: https://law.lv/ta/id/300021.