Published: 10.09.2024.
Translated by machine translator

The requirements for the provision are laid down in 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.

IT'S IMPORTANT TO KNOW:

  • A security for a tourism operator and a provider of related tourism services shall be an insurance policy issued by an insurer or a guarantee issued by a credit institution.

the issuer of the security (credit institution or insurance company) shall issue the provision to the tourism service provider in favour of the Consumer Rights Protection Centre !

  • (CRPC is a guarantor/indemnity!).
  • When issuing the collateral, the credit institution shall indicate in the bank guarantee: “Event of payment of the Bank guarantee — inability of the tourism operator or provider of related tourism services to fulfil all or part of its obligations and to provide tourism services.”
  • The term of the security shall be for a period of not less than one year. Taking into account seasonality of the activity, the tourism operator and the provider of related tourism services may provide additional security for a shorter period, but not less 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.
  1. A document regarding the provision shall be submitted to the CRPC together with an application for licensing of the tourism agent and tourism operator and registration of the provider of related tourism services in the database.
  2. ​​​​​​​the amount of the security shall be:

for tour operators and a provider of related tourism services that does not offer passenger services shall 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 in the case of Charter flights;
  • If any of the above characteristics coincide, the highest amount of collateral shall be determined accordingly.

 

related tourism services offering passenger services should 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;
  • If any of the above characteristics coincide, the highest amount of collateral shall be determined accordingly.
  •  

In order for the CRPC to evaluate the conformity of the amount of collateral with the requirements of regulatory enactments, the CRPC shall examine quarterly reports submitted by tourism operators and related tourism service providers, which in accordance with Paragraph 17 of Regulation No. 380 shall be submitted to the CRPC on a quarterly basis. Consequently, tourism operators and providers of related tourism services should immediately increase the amount of the security in case the CRPC, after consulting the information in the quarterly reports, determines that it no longer complies with the requirements of regulatory enactments.

A new insurance policy or credit institution guarantee for the following period shall be submitted to the CRPC two months before the expiry of the existing insurance policy or credit institution guarantee.

If one month before the end of the term of the provision the tourism operator or the provider of related tourism services has not submitted a document to the CRPC regarding new provision, it has a duty to refund all 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 provision, and the CRPC is entitled to take a decision to suspend the operation of the special permit (licence) of the tourism operator for a period of up to six months or to exclude a related tourism service provider from the database.