Greek hotel no opening - voucher - insurance

Mathemagic

Any advice welcome:
We were due to fly out on 31st July to Corfu. We booked the flights and hotel separately (basically replicating the Thomas Cook holiday we had booked and lost). 
Had an email from the hotel today saying they wouldn't be opening all summer because: They didn't have many bookings as a result of losing Thomas Cook meaning the summer was unsustainable; They couldn't / didn't want to do what they needed to in order to be Covid ready.
They have sent a voucher which seems to be via a new Greek Government scheme which is valid for 18 months. It does say if we don't use it then we received a refund after 18 months are up. However, they also said in the email they had no funds to be able to refund anyone anyway. I'm worried that the hotel won't have the money to refund in 18 months. 
We already face losing money on the flights or hopefully taking a voucher (I understand this - as far as the airline is concerned, we are just flying). Travel insurance company (booked way before Christmas) is saying that because they have given a voucher we are unlikely to be able to claim. I feel we should claim on the insurance as we are ready to go and it is the hotels choice not to be open.
Any ideas, thoughts etc very welcome.

Mrsn

How did you pay for the hotel?

unforeseen

Mrsn said:

How did you pay for the hotel?

I don't think that will make much difference. The hotel are complying with Greek law so S75 is out. Probably charge back for the same reason. 

Mathemagic

We did pay by credit card and am exploring that option but am not convinced it will be successful.
The Greek law came in a long time after we booked. We are going to be out of pocket even if the hotel money does eventually arrive - I don't think we can cancel and get a refund on the airport transfers, am trying for hotel parking, we won't get a refund for the two nights accommodation near the airport the night before or night after. The list goes on. Worst case we are out about £3,500. Even if we use the flights voucher and the hotel refund comes in 18 months time, we will still be about £500 down as a result. 

missile

Branson gets a bail out, but no help from Dorris for us.

epm-84

I don't think you've said how you paid for the hotel.  If you booked via a website like Expedia and Expedia took your money then they should be refunding you.  If the money was taken from your card by the hotel (which may be the case if you used booking.com) then it's a different matter.

Mathemagic

I paid the hotel directly, unfortunately. 

blindman

Mathemagic said:

I paid the hotel directly, unfortunately. 

Is booking another hotel for the same dates not an option?

Mathemagic

blindman said:

Mathemagic said:

I paid the hotel directly, unfortunately. 

Is booking another hotel for the same dates not an option?

Unfortunately not due to family circumstances and needs. We did consider that at the time. We are resigned to using the flights vouchers next year in some way if we can.
I'm getting nowhere yet with my travel insurance as they say because a voucher has been issued, that is effectively a refund. My response has been that EU law says I am entitled to a refund and the Greek Government is trying to remove that right.I am effectively being asked to pay to keep the hotel's cash flow going for a summer season. I don;t see why I should have to do that, that is for the hotel to negotiate with their banks surely.
Very frustrating as I've always booked travel insurance the moment I book a holiday for years and have never claimed before. The one time I want to claim and I have a battle.