The Legal Impacts of COVID-19 in the Travel, Tourism and Hospitality Industry

RIGHTS OF ORGANISERS: THE MALTESE PERSPECTIVE 219 Article 12.4 (and Maltese law) provides that the organiser shall provide the said refund to the traveller, without undue delay and in any event, no later than 14 days after the package travel contract is terminated. Such timeframe may be deemed to be too short a time, especially in circumstances like the current one, wherein it is not just one travel package contract that is being cancelled, and thus, the organiser would have to refund a greater number of travel package contracts within that short timeframe. 2. THE SITUATION IN THE EU BROUGHT ABOUT BY COVID-19 As mentioned previously, due to the situation brought forward by COVID-19, both the Package Travel Directive and Maltese Law were resorted to, in order to resolve the situation regarding travellers cancelling their travel package contracts under the “unavoidable and extraordinary circumstances” clause. As a result, organisers both in Malta and in the EU were bound by the Package Travel Directive and thus had to refund the travellers within the 14-day time frame, as is required by law. However, the situation regarding the refunds and the 14-day timeframe evolved in various directions, in different Member States, as it became evident to many that this timeframe was impractical. This brought about amendments in various national laws, so that flexibility was provided in the applicability of the Travel Package Directive. Some EU Member States provided for a voucher system, wherein instead of applying the relative provision of the PTD, and thus obliging organisers to provide a refund, a voucher would be given to the traveller to be used within a stipulated time. Other Member States also provided that should the traveller not resort to use the voucher within the stipulated time, the refund would then be possible. This was beneficial for organisers, as it meant lifting a heavy burden that was imposed by the Package Travel Directive. 3. TO WHAT EXTENT THE MALTESE LAW, TRANSPOSING THE PACKAGE TRAVEL DIRECTIVE, WAS AMENDED IN MALTA TO ASSIST ORGANISERS DURING COVID-19? However, Malta did not follow suit in providing for vouchers, instead, providing for an extension of the 14-day limit. Such amendment was brought

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