question Nr.1: a or a provider of accommodation services needs to register in the database of tourism agents, tourism operators and tourism service providers, which promote related tourism services, maintained by the CRPC, and is it necessary to receive a special permit (licence)? An accommodation provider sometimes offers a transfer to guests, sometimes helps arrange a tour of the city or buys a plane ticket to the customer, and the customer pays for the service with the accommodation provider.
Answer:
In accordance with the Regulations No. 380 of the Tourism Law and Cabinet of Ministers of 26 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 duty to register in the database and receive a Special permit (licence) shall lie with the Tourism operator (a person who himself or herself combines and offers for sale or sells to travellers his or her prepared complex Tourism services) (Section 1, Paragraph one, Clause 19 of the Tourism Law) and the Tourism Agent (person, which is not a tourism operator, but on behalf or on behalf of a tourism operator offers for sale and sells combined (prepared) package tourism services of another tourism operator) (Section 1, Paragraph one, Clause 14 of the Tourism Law).
At the same time, the referred to requirements shall not apply to a provider of complex tourism services who:
- provide a package tourism service covering a period of less than 24 hours, unless accommodation is included;
- a package provider offering or facilitating the sale of services only on a case-by-case basis, without a profit-making purpose and only for a limited group of travellers;
- a package provider providing services on the basis of a general contract for the organisation of business trips concluded between the provider and another natural or legal person acting in the course of his economic or professional activities;
- a complex or related tourism service provider registered in another European Union Member State, if he or she has a guarantee regarding non-performance of obligations or improper fulfilment thereof in accordance with the law of the relevant Member State (Section 16, Paragraph eight of the Tourism Law).
Thus, in order to determine whether a provider of a tourism service is subject to the requirements of the new regulation for registration in a database and to obtain special permits (licences), it is necessary first to determine whether a package tourist service (rather than a separate tourist service) is offered and sold directly and, if, however, a package tourist service is offered for sale and sold, it is necessary to examine whether that service is covered by the exceptions laid down in the eighth paragraph of Article 16 of the Tourism Law.
The definition of tourism service is provided in Section 1, Paragraph one, Clause 20 of the Tourism Law.
It should be borne in mind that services forming an integral part of another tourist service should not in themselves be regarded as tourist services. . Such services include, for example, the movement of baggage provided in the context of passenger transport, detailed transport services, such as the transport of passengers by guided tours, or transport between a hotel and an airport or railway station, meals, drinks and cleaning provided in the context of accommodation, or access to on-site facilities such as a swimming pool, sauna, spa or gym which hotel guests have included during their stay.
On the other hand, the “other tourist service” referred to in Section 1, Paragraph one, Clause 20, Sub-paragraph (d) of the Tourism Law, which is not an integral part of passenger transport, accommodation or rental of motor vehicles, may include, for example, tickets for concerts, sporting events, excursions or amusement parks, guided tours, ski track lift tickets and sports equipment such as ski equipment, or a spa procedure.
However, the definition of a package tourism service is laid down in Section 1, Paragraph one, Clause 5 of the Tourism Law. At the same time, Section 1, Paragraph two of the Tourism Law determines what is not considered to be a package tourism service within the meaning of this Law.
Consequently, the sale of a separate service, such as a guided tour of the city or the reservation/purchase of an airline ticket, does not constitute a package within the meaning of Section 1, Paragraph one, Clause 5 of the Tourism Law. Likewise, for example, a combination of two different tourist services within a single journey (that is to say, a package of tourist services) does not constitute an overnight stay in a hotel and a transfer to/from a hotel, or an accommodation in a hotel and meals provided in the context of accommodation, since those services form an integral part of the accommodation service.
Thus, if, at the same time as the accommodation service, the purchase of air tickets is not offered (no single contract is concluded or a common price is charged for these services) or, at the same time as the accommodation service, no guided tours are offered, for example, around the city, or another tourist service representing a significant proportion (at least 25% or more) of the total value of the service, the accommodation provider is not required to register with the database and is not required to obtain a special permit (licence).
Question Nr.2: does tourism regulation apply to providers offering accommodation and other operators offering several services, such as:
- accommodation that includes both bed space, breakfast, sauna or other activity;
- accommodation comprising several of its services and services provided by other operators;
- a provider of recreational services offering bicycle rental and making cycling tours, the price of which includes both bicycle and other inventory norms, guide services (provided by another provider) and catering services with a third provider;
- a cultural institution, such as a museum, which offers pedagogical programmes created as a result of cooperation between several enterprises (museum + artisan + diner), and money for all services is received by the museum.
Answer:
The regulation of the tourism field (namely the requirements laid down in Section 16 of the Tourism Law and Cabinet of Ministers Regulation No. 380 of 26 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) shall apply to:
- a tourism operator (in accordance with Section 1, Paragraph one, Clause 19 of the Tourism Law, it is a person who himself or herself combines and offers for sale or sells to travellers his or her prepared package tourism services directly or through another provider of services);
- a tourism agent (in accordance with Section 1, Paragraph one, Clause 14 of the Tourism Law, it is a person who is not a tourism operator, but on behalf or on behalf of the tourism operator offers for sale and sells combined (prepared) package tourism services of the tourism operator);
- related tourism service provider (the definition of a related tourism service provider is referred to in Section 1, Paragraph one, Clause 32 of the Tourism Law).
At the same time, Section 16, Paragraph eight of the Tourism Law sets out exceptional cases, in the presence of which the specified requirements need not be fulfilled, despite the fact that a package tourism service is offered for sale and sold.
Section 16 of the Law on Tourism provides, in Paragraph eight of the Law on Tourism, that the requirements laid down in Section 16 of the Law on Tourism do not apply to:
- a package or related tourism provider providing a package or related tourism service covering a period of less than 24 hours, unless accommodation is included;
- a package or related tourism provider offering or facilitating the sale of services only on a case-by-case basis, without a profit-making purpose and only for a limited group of travellers;
- a package or related tourism provider providing services on the basis of a general contract for the organisation of business trips concluded between the provider and another natural or legal person acting in the course of his economic or professional activities;
- a complex or a related tourism service provider established in another Member State of the European Union, if it has a guarantee of non-fulfilment of obligations or improper fulfilment thereof in accordance with the law of the relevant Member State.
Thus, in order to determine whether a provider of a tourism service is subject to the requirements of the new regulation regarding registration in a database and will receive special permits (licences), it is necessary first to determine whether a package tourist service (not a separate tourism service) is offered and sold directly and, if, however, a package tourist service is offered for sale and sold, it is necessary to examine whether the exceptions laid down in Section 16, Paragraph eight of the Tourism Law apply to that service. (for example, if the package does not cover a period of less than 24 hours and does not include accommodation).
Section 1, Paragraph one, Clause 20 of the Tourism Law provides that a tourism service is a targeted activity to satisfy the interests and needs of tourists, which is:
(a) carriage of passengers;
(b) accommodation which is not an integral part of the carriage of passengers and which is not intended to ensure habitual residence;
(c) the hire of motor vehicles (in accordance with Article 3 (11) of Directive 2007/46/EC of the European Parliament and of the Council of 5 September 2007 establishing a framework for the approval of motor vehicles and their trailers, and of systems, components and separate technical units intended for such vehicles (Framework Directive), any motor vehicle moving under its own power shall be considered to be a motor vehicle; have at least four wheels and are complete, completed or incomplete in stages and have a maximum design speed exceeding 25 km/h);
(d) any other tourist service which is not an integral part of the service referred to in Sub-paragraph “a”, “b” or “C” of this paragraph.
It should be borne in mind that services forming an integral part of another tourist service should not in themselves be regarded as tourist services. . Such services include, for example, the movement of baggage provided in the context of passenger transport, detailed transport services, such as the transport of passengers by guided tours, or transport between a hotel and an airport or railway station, meals, drinks and cleaning provided in the context of accommodation, or access to on-site facilities such as a swimming pool, sauna, spa or gym which hotel guests have included during their stay.
On the other hand, another tourist service, which is not an integral part of passenger transport, accommodation or motor vehicle hire, may include, for example, tickets for concerts, sporting events, excursions or amusement parks, guided tours, ski-track lift tickets and sports equipment such as ski equipment, or a spa procedure.
A complex tourism service within the meaning of Section 1, Paragraph one, Clause 5 of the Tourism Law shall be a combination of at least two different tourism services within the scope of one trip, which conforms to one of the following requirements:
(a) it is joined by a single provider, including at the request of the traveller or at the choice of the traveller, before a single contract for all the services is concluded;
(b) irrespective of whether individual contracts are concluded with service providers, tourism services shall be: purchased at a single point of sale for tourist services and chosen by the traveller before agreeing to pay; one inclusive or common price has been offered, sold or charged for; advertised or sold using the words “package tourism service” or other similar words; combined after the conclusion of a contract by which the service provider grants the traveller the right to choose from the offer of different types of tourism services; purchased from individual service providers through related online reservation processes, if the service provider with whom the first contract has been entered into sends information regarding the given name and surname, payment details and electronic mail address of the traveller to one or more service providers and the contract with the last service provider or service providers is entered into not later than within 24 hours after the confirmation of the first tourism service reservation.
In accordance with Section 1, Paragraph two of the Tourism Law, a combination of tourism services, which includes not more than one of the tourism services referred to in Paragraph one, Clause 20, Sub-clause “a”, “b” or “C” of this Section, and one or more tourism services referred to in Sub-clause “d”, shall not be regarded as a package tourism service within the meaning of this Law, if the tourism services referred to in Sub-clause “d” do not constitute a significant part (25% or more) of the total value of such combination of tourism services from the value of the combination of tourism services, nor are advertised or otherwise presented as an essential feature of a combination of tourist services or have been selected and purchased only after the provision of the tourism service referred to in Sub-paragraph “a”, “b” or “C” has commenced.
Against this background, in response to question Nr.2, the CRPC explains that:
- a lodging offering both a bed place and breakfast, as well as a sauna or other activity need not register with the database and do not need to obtain a special permit if breakfast, sauna or other activity is provided as part of accommodation or included during maintenance; it is also not necessary to register in the database and not to obtain a special permit (licence) if the sauna or other activity is not ensured within the framework of accommodation, but for all services one contract has been entered into or for all services there is one total price, but these services do not represent 25% or more of the total value of the service; it is not necessary to register in the database and obtain a special permit (licence) also in case the client settles separately for accommodation services and additionally chooses another service, such as sauna or other activity, for a separate payment during the stay;
whether the accommodation offers only its own services or those of other operators is not decisive for determining whether it is a complex tourist service and therefore whether the service offered is subject to the requirements of registration in the database and obtaining a special permit (licence). . The decisive factor is whether at least two different tourist services constituting a package are offered within a single journey and whether these services are either: 1) merges one service provider before entering into one contract for all services; or (2) whether or not individual contracts are concluded with service providers, tourism services are purchased at a single point of sale for tourism services and the traveller has chosen these services before agreeing to pay; one inclusive or common price has been offered, sold or charged for; advertised or sold using the words “package tourism service” or other similar name s.
- A package of tourism services will be provided, for example, if two services referred to in Section 1, Paragraph one, Clause 20, points (a) to (c) of the Tourism Law are purchased within one trip (for example, accommodation in a guesthouse and rental of a vehicle or accommodation in a guesthouse and carriage of passengers (for example, purchase of air tickets)). Similarly, a complex tourism service will be provided, for example, if only one of the services referred to in Section 1, Paragraph one, Clause 20, points (a) to (c) of the Tourism Law (for example, accommodation in a guesthouse) and one or more other services referred to in Section 1, Paragraph one, Clause 20, Sub-paragraph (d) of the Tourism Law (for example, guided tours) are purchased within the framework of one travel, if other services (for example guided tours) form a significant part, that is, 25% or more of the total value of the combined services;
- a provider of active recreation services offering bicycle rental and making cycling tours, the price of which includes both bicycle and other inventory norms, guide services (provided by another provider) and catering services with a third provider, is not required to register in the database and not to obtain a special permit (licence), since the rental of cycling does not constitute the rental of motor vehicles within the meaning of Section 1, Paragraph one, Clause 20, point (c) of the Tourism Law, nor does that service include the transport or accommodation of passengers, the services offered do not constitute a package within the meaning of Section 1, Paragraph one, Clause 5 of the Tourism Law;
- a cultural institution, for example, a museum which offers pedagogical programmes created as a result of co-operation between several undertakings (museum + artisan + catering), despite the fact that money for all services is received by the museum, does not have to register in the database and does not have to obtain a special permit (licence), because the services offered do not constitute a complex tourism service within the meaning of Section 1, Paragraph one, Clause 5 of the Tourism Law.
Question 3: Is it necessary for a merchant registered in the Republic of Latvia, which is engaged in incoming tourism within the scope of the so-called “Business-to-Business” or “B2B” contract, to receive a special permit (licence) and register in the database of tourism agents, tourism operators and tourism service providers, which promote related tourism services, maintained by the Consumer Rights Protection Centre?
Answer:
If a merchant registered in the Republic of Latvia who is engaged in incoming tourism does not enter into such agreements with natural or legal persons on the basis of which a person has the right to travel (does not enter into agreements with travellers regarding the provision of package tourism services and does not receive money from travellers for the provision of package tourism services), but the services are provided on the basis of a transaction agreement entered into between two undertakings (so-called “Business-to-Business” or “B2B” contract), the relevant merchant does not need to receive a special (permit) licence and register in the database of tourism agents, tourism operators and tourism service providers, which promote related tourism services, maintained by the Consumer Rights Protection Centre. It is not necessary for the relevant merchant to fulfil the obligations laid down in Section 16, paragraphs one and two of the Tourism Law.