Sweden's travel agencies want the government to establish a fund to save the industry when customers demand their money back during the corona crisis.

Minister of Industry, Trade and Industry Ibrahim Baylan (S) says in a comment to TT that the government does not rule out more measures.

”"It is a disaster of epic proportions," says Didrik von Seth, secretary general of the Swedish Travel Agency and Tour Operators Association (SRF).

”"I compare it to the restaurant industry where there are hardly any customers. In our case, there are no customers at all, and on top of that, it would be as if all the bills that customers have paid over the past two months are being paid back," he says.

SRF has submitted a proposal to the Ministry of Enterprise and Industry that the government establish a fund of six billion kronor to save the approximately 300 member companies that employ 7,000 people.

The sum should be enough to repay all prepaid trips booked in 2020, and which customers are entitled to a refund under the Package Travel Act. SRF proposes that the six billion will be paid back to the state over 20 years through fees of five kronor per flight and 25 kronor per package trip.

The financial difficulties are compounded by the fact that many airlines and hotels refuse to pay back travel agencies when trips are canceled. SRF does not rule out going to court, but explains that any legal proceedings could take time.

”"It's urgent. The fund is a simple measure, it doesn't cost money, saves many jobs and secures Swedish companies," says von Seth.

The proposal was submitted to the Ministry of Industry and Trade a little over a week ago, but the government has not yet responded.

”"Many proposals are being received by the government on ways to mitigate the effects of the corona pandemic. We welcome the proposals and do not rule out more measures," says Minister of Industry and Trade Ibrahim Baylan (S) in a written comment.

Source: TT