NEW LAW SUPPORTS TRAVEL AGENCIES FACING THE PANDEMIC

The President of the Republic, Laurentino Cortizo Cohen sanctioned Law 199 of February 15, 2021, which temporarily empowers travel agencies that sold or received travel package passes after March 19, date of the official decree of the pandemic by Covid 19, until October 30, 2020, to make agreements for the return of the amount paid or reschedule the service offered.

 The General Administrator of the ATP, Iván Eskildsen, pointed out that “this provides an economic respite and helps to safeguard the jobs of travel agencies, one of the sectors most affected by the pandemic. We will continue looking for alternatives to support the sector based on our 18-month Post-Covid Strategic Plan, where financial support is our priority to help reactivate our industry as soon as possible ”.

 The law emphasizes that travel agencies that have sold tourist packages during the indicated months must grant the person or the group who requested the service, a credit for the amount paid within a period of twelve months, renewable, at the will of both parties.

 It is also offered as an option that the credit granted by the purchased package can be transferred to a third person; for this, a note authenticated by a notary public must be delivered to the travel agency. In addition, the consumer, likewise, may request the return of all the money, which the tourist company will have to pay in one year, counted from the notification.

 Meanwhile, the people who requested these tourist packages will have 30 days to communicate their decision to the travel agency, as soon as it is informed by the company.

 They will no longer be required to operate on the ground floor

On the other hand, Law 199 in its article 3, modified the first paragraph and literal C of article 9 of Law 73 of 1976, which regulates travel agencies, empowering the Tourism Authority of Panama (ATP) to establish the requirements where these tourism companies can operate. From 1976 to date, travel agencies were obliged to operate on the ground floor of business premises.

 In this sense, the ATP administrator, Iván Eskildsen, signed a Resolution which establishes that travel agencies must operate in a commercial area leased and labeled with the name of the company, where they can offer only the services this type of business: among which are: accommodation, transportation, tourist packages, tours, tourist guides.

 Eskildsen added that “one of the actions indicated in the Sustainable Tourism Master Plan 2020-2025 establishes the importance of updating the tourism regulatory framework in such a way that the structure and regulations adjust as much as possible to current market trends and improve the competitiveness of our industry. "

 Other measures established in the resolution highlight that people interested in undertaking this type of business may not use family homes or premises that are dedicated to commercial activities that are not compatible with those carried out by travel agencies.

The following areas are identified as compatible with the work of travel agencies: premises located in shopping centers, department stores, public tourist accommodation registered with the ATP, air, land or sea transport terminals and convention centers.

 According to the ATP, the measure will make it easier for companies or travel agencies to establish their offices not necessarily on the first floor of the selected premises as required by Law 73, which represented a higher rental cost due to the location. Now with this modification, people who work in this sector of the economy will see significant savings reflected in their finances.

 In accordance with the aforementioned resolution, the people who have in mind to venture into this commercial activity must present in the National Tourism Registry of the Department of Tourism Companies of the ATP, a contract or promise of a lease with a minimum validity of one year, if He is the owner of the certified premises of the public registry and in the case of presenting a promise of a lease, he will have 30 days after having accepted the premises to consign the authenticated copy of the lease.

 The ATP will implement an online process for the travel agencies that are in operation to update the location of the domicile of the company and the branches, within the first six months after the promulgation of this resolution, which will not have any economic cost.

 Failure to comply with these rules will be subject to fines, sanctions or indefinite revocation of the operating license, in accordance with the provisions of Law 73.

 It will be the responsibility of the ATP to carry out the inspections of the establishments that are dedicated to this commercial activity. Currently, about 425 travel agencies are registered with this institution.

Source: PR Office - Panama Tourism Authority - Autoridad de Turismo de Panamá