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Unauthorised business in tourism: what is considered as such?
The Association of Czech Travel Agencies ("ACK") has created a new educational guide for entrepreneurs entitled "(Un)authorised Business", which briefly explains the most pressing issues in the field of tourism. This brochure contains everything necessary to know about this issue. From explaining the concept of unauthorised business in tourism, through information on when unauthorised business is considered a misdemeanour and when it is considered a criminal offence, to explaining what is and isn't a travel package, and how to establish a travel agency. It is therefore a guide that will help avoid unauthorised business.
Regarding the topic of unauthorised business in tourism, ACK has managed to get together the main stakeholders of tourism legislation and its enforcement in the Czech Republic. Based on extensive discussion which involved the Ministry of Industry and Trade, the Ministry of Regional Development, the Czech Trade Inspection, the Association of Czech Insurers, representatives of travel agencies, and the Association of Czech Travel Agencies, an initiative was launched to publish the necessary brochure entitled "(Un)authorised Business", a practical solution to explain the concept of unauthorised business in tourism and, above all, how to prevent it.
Klára Dvořáková, a partner at our law firm and a leading expert in the field of law in tourism and travel, significantly contributed to the preparation of this brochure. Her goal was also to make sure that brochure reflects the general practice in the field.
This brochure utilises a so-called checklist, which can be used to verify whether a specific case constitutes unauthorised business or not. For this purpose, 5 main characteristic features of unauthorised business are used: consistency, independence, acting in one's own name, at one's own risk, and for profit. If a business meets all of these criteria, it is considered an unauthorised business. The brochure also includes specific examples with explanations.
You can find the entire brochure here: Brozura_ACK_13-3-2024_1.pdf (mpo.cz) (in Czech)
If a reader of this brochure finds any information missing, there is a summary of sources at the end from which the authors drew. Or it is possible to consult a problem with our law office. If the article caught your interest, you are unsure about the legality of your business, or you need advice on another question in the field of tourism, do not hesitate to contact us.
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Jasper Brinkman
Jasper Brinkman
"Following a devastating hotel fire in Prague, the law firm Holubová advokáti, led by attorney Klara Dvorakova, successfully represented our extended family as a group of victims. The firm navigated complex international insurance and compensation laws to defend our rights.
I would like to acknowledge the extraordinary efforts the firm had to make to bring our case to a successful compensation under extremely difficult circumstances."
Stewarts
Stewarts
"A visit to her daughter in London turned Eva's life upside down when she says she stepped into a crossing on a green light but was hit by a car. Despite her remarkable bravery, she faced a long treatment due to fractures in her pelvis, and the associated limitations and pain are likely to persist for the rest of her life. Regular headaches and impaired concentration compound her challenges.
Eva contacted us through an organization temporarily helping her manage her difficult living situation. At that time, she was destitute, relying only on subsistence payments. We were able to assist her because we specialize in personal injury and have contacts with proven colleagues abroad.
We worked with Stewarts, a UK law firm, on this case. Attorneys Klára Dvořáková and Rebecca Huxford helped Eva with the documentation in her case, explaining her options and the differences between the Czech and British systems of healthcare and social benefits reimbursement. Within a few months, thanks to the professional cooperation between the two offices, an offer of compensation from the insurance company of approximately CZK seven million was achieved. The client accepted this settlement because she did not want to deal with courts in the United Kingdom.
Subsequently, we assisted the client with related tax issues and contacted Auditone, a tax consultancy firm, which arranged for the filing of a tax return. Compensation for lost income is taxable, unlike most personal injury compensation.
'No one has done as much for me as you,' Eva said.
The fact that we were able to help Eva gives our work meaning and brings us great joy. We are very happy that, thanks to our many years of active involvement in the international professional organization PEOPIL, we can cooperate on such cases."