152 LEGAL IMPACTS OF COVID-19 IN THE TOURISM INDUSTRY During these troubling times, the COVID-19 pandemic has caused a number of issues which have a significant impact on the travel industry. The massive cancellations of trips, as result of negative travel advisories and closing of borders, have caused an exorbitant outflow of liquidity, which could lead to the financial ruin of thousands of tour operators and travel agencies in the near future. The European Travel Agents’ and Tour Operators’ Association, in its Press Release on the 17 March 2020, focused on the need that the European Commission shall grant exceptional flexibility in the application of the Directive (EU) 2015/230215 (hereinafter referred to as “PTD”), to the interest of travel companies, suppliers, governments and consumers16. III.1. EU Legal Framework Regarding Travellers’ Rights in Case of Termination of the Package Travel Contract Under the Package Travel Directive rules, the organiser of a package has the right to terminate the package travel contract without penalty if he is prevented from performing it because of “unavoidable and extraordinary circumstances”. The organiser shall notify the traveller of the termination of the contract without undue delay before the start of the package. In this case, the organiser shall provide the traveller with a full refund of any payments made for the package, but shall not be liable for additional compensation (Article 12(3)(b) PTD). Contrary to Air Passenger Rights Regulation in which there is no mention to the case of serious diseases or epidemics, the PTD includes in its indicative list of unavoidable and extraordinary circumstances the case of the outbreak of a serious disease at the travel destination (Recital 31(2), Preamble, PTD). Significant risks to human health, such as the outbreak of a serious disease like the COVID-19, at the travel destination or its immediate vicinity usually qualify as unavoidable and extraordinary circumstances. The assessment of whether those circumstances significantly affect the performance of the package must be made on a case-by-case basis. 15 Directive (EU) 2015/2302 of the European Parliament and of the Council of 25 November 2015 on package travel and linked travel arrangements, amending Regulation (EC) No. 2006/2004 and Directive 2011/83/EU of the European Parliament and of the Council and repealing Council Directive 90/314/EEC (OJ L 326, 11.12.2015, pp. 1-33). 16 European Travel Agents’ and Tour Operators’ Association, Press Release - The European travel agents and tour operators call for pragmatism and flexible application of the refund rules, 17th March 2020. Available in: https://www.ectaa.org/Uploads/press-releases/Press-release-ECTAA-calls-for-pragmatism-and-flexibleapplication-of-the-refund-rules.pdf (accessed on 26/04/2020).
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