Package holiday bookings impacted by the Covid-19 pandemic will now be protected by the State.
New laws have been brought in to ensure people in Ireland will receive a refund or voucher if their holiday booked through a travel agent or tour operator is cancelled.
The public will now be able to avail of a "Refund Credit Note" - which can be used at a later date - or its cash value.
And if a travel agent or tour operator goes bust, the credit note will be protected by the Government.
Tourism Minister Shane Ross said: "I am pleased to announce that Refund Credit Notes issued by Irish licensed travel agents and tour operators will be insolvency protected by the State.
"Overseas travel booked through travel agents and tour operators have high levels of consumer protections.
"This means that consumers can agree to accept such Credit Notes in the knowledge that their money is safe.
"People are entitled under the law to a cash refund in circumstances where a booking has been cancelled because of Covid-19, but where they can, I urge people to consider accepting a Refund Credit Note instead.
"The Refund Credit Note can be used to rebook at a later date, or it can be cashed in at a later date too, safe in the knowledge that it is Government protected."
He added: "The guarantee protects the cash value of a Refund Credit Note in the event that a Travel Agent or Tour Operator becomes insolvent and goes out of business.
"Consumers are entitled to a full cash refund under the Package Travel Directive in circumstances where a package holiday has to be cancelled because of Covid-19 restrictions.
"Where customers agree to accept a voucher as a refund – a Refund Credit Note – instead of cash, then the Government will stand over the cash value of that Note in the event that the issuer goes out of business.
"Consumer protections are therefore safeguarded. All relevant information is available on the Departments website."
The Irish Travel Agents Association have welcomed the announcement.
Its CEO Pat Dawson: "The news that the Government is willing to stand over the Refund Credit Note has brought huge relief within the Irish travel sector, as it is a step in rebuilding our industry as soon as the threat of COVID-19 has passed.
"We are pleased with this significant development for our customers and our member travel agents."
Minister Ross said the Government is determined to save jobs and protect businesses, as well as the "rights of the hard-pressed consumer".
