Asita revises 'Plan Save 5' program<\/p>\n
JAKARTA (JP): Indonesia's travel industry has decided to try
\nout a revised savings scheme designed to facilitate business and
\nstabilize international air fares.<\/p>\n
Members of the Association of Indonesian Tour and Travel
\nAgencies (Asita) agreed at the conclusion of their congress on
\nWednesday evening to proceed with a modified version of Plan Save
\n5, which will give agents access to the interest on savings after
\nonly one year.<\/p>\n
Under this agreement, the name of the program may be changed.<\/p>\n
The association held its three-day congress in Medan, North
\nSumatra, to elect a new board of executives and to discuss the
\nsavings scheme, which has stirred controversy since its
\ninitiation two years ago.<\/p>\n
Plan Save 5, introduced in November 1993 to prevent price wars
\nbetween agencies, has threatened to divide Asita into two groups,
\none supporting the scheme and the other opposed to it.<\/p>\n
Under the scheme, five percentage points of the nine percent
\ncommission extended by foreign airlines must be deposited with
\nthe state-owned Bank Bumi Daya, which offers an annual interest
\nof seven percent on the money.<\/p>\n
After two years, 50 percent of the interest on the deposits is
\npaid to the Indonesian Tourism Promotion Board for the promotion
\nof Indonesia's tourist industry abroad. The other 50 percent
\nbelongs to the depositors.<\/p>\n
Those opposed to the program protested strongly when it led to
\na sharp increase in the funds they were required to provide as a
\nguarantee to the International Air Transport Association (IATA)
\nin August this year.<\/p>\n
IATA required each tour and travel agency to provide a minimum
\nof US$15,000, or 120 percent of average sales over 15 days, in
\nguarantee funds. Previously, the guarantee required was only 40
\npercent of average sales over 15 days.<\/p>\n
What made the debate over the program more heated than usual
\nwas the fact that IATA and Asita had agreed earlier that the
\nagencies' deposits under Plan Save 5 might be used to pay the
\nguarantee.<\/p>\n
Asita also agreed to let more state-owned banks participate in
\nthe program, Antara news agency reported yesterday.<\/p>\n
Re-elected<\/p>\n
During its sixth congress, Asita also decided to re-elect Sri
\nMulyono Herlambang as the association's chairman for the 1995-
\n2000 working period.<\/p>\n
The congress first decided to choose five candidates to
\nformulate the new structure of the executive body of the
\norganization on their own. H.M. Bermawi was also re-elected as
\nAsita's secretary-general.<\/p>\n
The new board of executive consists of 19 members, 11 of whom
\nare newcomers. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asita-revises-plan-save-5-program-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}