Public support for TA will be up to the limit of 800,000 euros, the government approved


Updates: 18.01.2021 19:09

Prague – The COVID travel agency II program will be more accessible for large travel agencies (TA). They will be able to apply for public support up to a limit of 800,000 euros (about 21 million CZK). So far, the de minimis regime has been in force with a limit of 200,000 euros (about 5.3 million CZK). The government approved the extension of the limit today. This was stated at a press conference after its meeting by the Minister of Finance Alena Schillerová (for YES) on behalf of the Ministry of Regional Development, to which the program belongs. Thanks to the help of the state, travel agencies will be able to take out insurance more easily.

The COVID Travel Agency II program will be more accessible to large travel agencies (TAs). They will be able to apply for public support up to a limit of 800,000 euros (about 21 million CZK). So far, the de minimis regime has been in force with a limit of 200,000 euros (about 5.3 million CZK). The government approved the extension of the limit today. This was stated at a press conference after its meeting by the Minister of Finance Alena Schillerová (for YES) on behalf of the Ministry of Regional Development, to which the program belongs.

According to Schiller, large travel agencies have a larger share in paying taxes, in gross domestic product. The de minimis framework is thus very disadvantaged, she said. According to Schiller, the expansion of public support takes into account about two percent of their expected revenues for last year.

The TA will be able to use the subsidies to cover operating costs for the period from 11 October to 4 January or to satisfy customers’ contractual claims for canceled tours from 20 February to 31 December last year, Schillerová added.

Until 29 January, travel agencies, agencies and guides can apply for support from the COVID tourism support program. 500 million crowns are set aside for the entire program, and about 345 million crowns for TA.

According to the latest analyzes by Economic Impact for the CzechTourism agency, tourism consumption will fall by about 54 percent to 139 billion crowns last year due to the coronavirus pandemic.

Thanks to the help of the state, travel agencies will be able to take out insurance more easily

The government today approved the COVID TA guarantee program, which aims to make it easier for travel agents to obtain insolvency insurance. This was stated by the Minister of Industry and Trade Karel Havlíček (for YES) at a press conference after the cabinet meeting. 300 million crowns are set aside for this assistance.

The support will be provided for one calendar year, ie for the period that started between last October 1 and this year’s 31 December. Applications for support will be accepted by branches of the Czech-Moravian Guarantee and Development Bank (ČMZRB).

According to Havlíček, the program focuses primarily on the support of small and medium-sized travel agencies. It should reach 91 percent of the aid. According to Havlíček, this is a system solution for large travel agencies.

“The ČMZRB bank guarantee is to amount to 75 percent of the required travel agency’s participation in the 30% insurance limit, ie the maximum sum insured, but not more than four million crowns,” said Marian Piecha, Deputy Minister of Industry and Trade for EU Funds.

According to the president of the Association of Czech Travel Agencies and agencies, Roman Škrabánek, insurance companies have tightened the conditions for obtaining bankruptcy insurance. This covers the payment of all customer payments and costs associated with the repatriation of passengers back to the Czech Republic. According to Škrabánek, insurance companies also require the payment of a high principal in addition to the payment of insurance premiums.

Firo-tour, for example, is currently negotiating insurance policies for the next period, which expired on 31 December. It thus temporarily continues to operate as a travel agency.

As of 1 January, the Ministry for Regional Development registered 704 TA. According to the ministry, ten TAs declared bankruptcy last year, 133 of them interrupted their activities, and 20 TAs were newly established.


Source: České noviny – hlavní události by www.ceskenoviny.cz.

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