Chris and Winifred Hyde, from north Wales, are suing the company for failing to provide adequate security during a holiday in June 2007 at the Gran Bahia Principe hotel, a sprawling property in the tourist hot spot of Punta Cana.

Mr Hyde says he was woken at 4am by his wife’s screams. “There were two men in the room. One was holding a pistol to my wife’s head and the other had a stiletto at my throat. They pistol-whipped my wife to stop her screaming.”

During the ordeal, the robbers - who had forced the locks on the ground-floor apartment - raided the room safe and threatened to cut off Mrs Hyde’s fingers to steal her rings. Mr Hyde says he feared for their lives.

“Because the pair had made no attempt to conceal their faces, I thought they would kill us,” he said.

As the bandits fled, the Hydes called in vain for the hotel’s security guards. “We walked all the way to reception and waited two hours for the head of security to arrive. The police and the First Choice rep arrived after that.”

Mr Hyde added: “The manager suggested we might accept an offer of one week’s free holiday at another resort by way of compensation, in return for us keeping the matter confidential.

This offer of compensation was subsequently raised to two weeks, plus monies to the value of the jewellery stolen.” But the couple refused and flew home.

“We take reported incidents of this type extremely seriously and would like to reassure all our customers that their health, safety and security are of paramount importance,” said First Choice.

“In this instance, as Mr and Mrs Hyde have decided to pursue legal action, we are unable to comment further.” The Sunday Times put Mr Hyde’s allegations to the hotel, but the manager was unavailable for comment.

Andrew Morton, from law firm Pannone, representing the Hydes, said: “Under package-holiday regulations, tour operators are liable for the acts and omissions of the hotels they use.

Once the operator is aware of potential danger, it has a duty to look out for its customers.” The Foreign Office says violent crime is rare in the Dominican Republic but advisories from other countries disagree.

“Reports of violence against foreigners are growing,” says the US department of state. “Many criminals have weapons and are likely to use them if they meet resistance.”