During a parliamentary debate on tourism in the 'heart' of the crisis-corona pandemic in October 2020, some MPs expressed their concerns about the financial situation of the travel industry. They have requested the government to investigate how the financing structure of the travel sector can be made less vulnerable. Ahead of this pending investigation, a broad-based committee from the travel industry has been scrutinizing its position and showing that the industry is flexible and resilient, but no industry could have been prepared for a full lockdown of, for some travel companies, as long as 2 years!
"Our travel sector is really one of the hardest hit by Covid-19. In a short time the whole world was put 'on orange', forcing us to repatriate more than a hundred thousand people, cancel trips and then no more trips could be carried out. We therefore appealed to the government for our sector quite soon after the start of the pandemic."
For example, through a government facility to the guarantee fund SGR, travel companies were able to issue vouchers with a guarantee to customers whose trip could not take place. And as the pandemic continues, a government-guaranteed loan to travel companies through SGR's Voucher Fund offered a further solution. These loans must of course be repaid by the companies through SGR with interest. Government help has been indispensable; there were few bankruptcies, but nevertheless raised the question of whether the financial structure of the travel industry could be made less vulnerable.
Because the SGR guarantee fund also runs a risk, it has been decided to strengthen this guarantee fund with a consumer contribution of € 5 per traveler. This not only limits the risk for the government and the traveler can continue to count on a guarantee for his holiday, but also removes the reason for adjusting the financial structure. This package guarantee via SGR has proven its strength for decades, including during this pandemic.
The committee from the travel sector does insist that (European) legislation be amended. In the current package travel law, all possible risks of so-called 'unavoidable and extraordinary circumstances', such as Covid, and the costs are fully borne by the tour operator. Think of recalling customers, refunding canceled trips, adjusting travel advice on a daily basis and a hopeless failure of European coordination.
The travel sector also draws attention to the establishment of an Aviation Guarantee Fund; a guarantee fund for airlines that the traveler can turn to if the airline goes bankrupt. She also draws attention to the creation of a scheme for uninsurable risks, such as infectious diseases, in order to limit the risks for travel companies.
After extensive research by the sector, it can be concluded that the Covid pandemic was exceptional and its consequences could not be foreseen. In addition to the travel industry, a large part of the Dutch business community has also had to rely on the government. Government aid cannot therefore be the reason for fundamentally adjusting the financial structure of the sector, but “we are looking forward to the research that the Ministry of Economic Affairs and Climate Policy wants to carry out with great interest and confidence,” said Frank Oostdam, chairman. ANVR.
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