Asita raises $20m from savings scheme<\/p>\n
JAKARTA (JP): The Association of Indonesian Tour and Travel
\nAgencies (Asita) collected some Rp 43 billion (US$19.54 million)
\nas of last January from its "Plan Save 5" program, an arrangement
\naimed at limiting discounted airfares for international flights.<\/p>\n
Asita's chairman, Sri Mulyono Herlambang, told journalists on
\nSaturday that Asita had contributed 50 percent of the interest on
\nthe funds, totaling $212,489, to the Indonesian Tourism Promotion
\nBoard.<\/p>\n
Plan Save 5, which has been boycotted by at least by 24 major
\ntravel agencies, requires tour and travel agencies to deposit
\nfive percentage points of the nine-percent commission they
\nreceive from airlines in state-owned Bank Bumi Daya.<\/p>\n
After two years, the agencies can withdraw their funds, but 50
\npercent of the interest on their deposits should be contributed
\nto the tourism promotion board.<\/p>\n
The scheme, which took effect on March 1, 1994, will not allow
\ntour and travel agencies to provide discounts of more than seven
\npercent of the published prices of tickets for international
\nflights.<\/p>\n
Heavy competition had previously forced tour and travel
\nagencies to offer discounts of seven to eight percentage points
\nof their commissions to costumers, leaving them with a mere one
\nto two percentage points in profits.<\/p>\n
Mulyono noted that Plan Save 5 has been effective in
\nminimizing discounting wars. A number of countries, including
\nSingapore and the Philippines, will likely adopt such a scheme.<\/p>\n
"Not only that, the International Air Transport Association
\nwill most likely adopt such a scheme for its authorized agents in
\na number of Latin American countries," Mulyono said.<\/p>\n
Domestic<\/p>\n
Asita's vice chairman, Indra K. Mahyudin, said the association
\nhas signed an agreement with the Indonesia National Air Carriers
\nAssociation (Inaca) on the implementation of a similar scheme to
\ncurb discounting of domestic airfares.<\/p>\n
Asita groups some 1,600 tour and travel operators in the
\ncountry, while Inaca comprises six air carriers, which are Garuda
\nIndonesia, Merpati Nusantara Airlines, Mandala Airlines, Sempati
\nAir, Bouraq Airlines and Dirgantara Air.<\/p>\n
Indra said the two associations have agreed to limit the
\ncommissions for domestic flight tickets at seven percent, of
\nwhich two percentage points should be deposited in a designated
\nbank. "So, we might call it Plan Save 2."<\/p>\n
He said that Asita and Inaca have not yet implemented the
\nagreement because "the government is still launching its campaign
\nagainst a discounting war. Just wait and see whether we need to
\nimplement it or not." (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asita-raises-20m-from-savings-scheme-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}