The Government is to provide a State guaranteed refund credit note for package holidays booked through Irish travel agents and tour operators in effort to help the industry during Covid-19 crisis.
It is understood the notes can be offered by travel agents and tour operators to their customers in circumstances where they are not able to provide a cash refund or a full cash refund.
Minister for Tourism Shane Ross received Cabinet approval for proposals today.
The refund credit note can be to the value of all of the refund due or part of the refund alongside part cash.
It will be redeemable for its cash value after six months and can be used to book a replacement holiday at any stage.
It will be State-guaranteed in the event that the travel agent or tour operator becomes insolvent.
Minister Ross said these are very difficult days for consumers who have booked holidays, for the tourism industry and for the many travel agents and tour operators who have seen their businesses face near collapse in recent months.
He said the Refund Credit Note is an attempt to strike a balance between preventing sector-wide bankruptcy (with associated immediate job losses) and consumer rights.