THE TOURISM AND HOSPITALITY INDUSTRY IN CROATIA 135 4.2. Traveller’s Right to Terminate the Package Because Special Circumstances Caused by COVID-19 As mentioned, in the TSA, there is a provision regarding the traveller’s right to terminate the package travel arrangements because of unusual circumstances caused by COVID-19. This right covers every non-performed package travel contract that should have taken place after 1 March 2020 and exists in parallel with the traveller's right to terminate the package travel package otherwise provided for in conformity with the Package Travel Directive. However, the traveller’s right to terminate the package is postponed for 180 days following the cessation of these special circumstances. In other words, in the duration of the COVID-19 pandemic, plus an additional 180 days, the traveller will not be able to terminate the package travel arrangement. Even so, the right to a refund in the case of termination continues to be recognised in favour of the traveller. In the case of termination of the package, the traveller has the right to a full refund of any payment, within 14 days, upon the expiry of 180 days from the cessation of special circumstances, the timeframe in which the organiser is obliged to refund the payment. The 14-day time limit for the refund of the payment only starts running after the 180 days. 4.3. Vouchers for Non-Performed Package Travel Arrangements It ensues, from the amendments to the TSA, that the organiser does not have any right to terminate the package travel arrangement for special circumstances caused by COVID-19. The aim of amendments is only to protect the organiser from the insolvency/bankruptcy. Thus, the organiser’s protection connected to these circumstances is achieved based on two rules. The realisation of the package travel arrangement is postponed until after the expiry of 180 days following the cessation of special circumstances if, after the expiry of that time limit, the traveller does not terminate the package. The reimbursement of the traveller’s payments is also postponed after the expiry of 180 days following the cessation of special circumstances if the traveller has terminated the package. The organiser is obliged to issue the voucher for a non-performed package travel contract instead of refunding package arrangements immediately, having the voucher a twofold function. The traveller retains the right to the package travel arrangement after the necessary conditions have been met, having insurance in the form of a credit-note that the organiser will pay him or her a full refund of all the payments regarding the package travel arrangements.
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