Tour association to proceed with savings scheme<\/p>\n
JAKARTA (JP): The Association of Indonesian Tour and Travel
\nAgencies (Asita) sees no reason to suspend its Plan Save 5, a
\nscheme requiring its members to save five percentage points of
\nthe nine percent commission they receive from airlines.<\/p>\n
\"If some agencies do not agree with the scheme, let's discuss
\nit at Asita's congress, which will open in Medan on Nov. 6,\" the
\nassociation's chairman, Sri Mulyono Herlambang, told a press
\nconference yesterday.<\/p>\n
A number of agencies complained about the scheme to members of
\nthe House of Representatives on Wednesday, which has led a sharp
\nincrease in the funds they are required to provide as a guarantee
\nto the International Air Transport Association (IATA).<\/p>\n
Starting this month, IATA requires each tour and travel agency
\nto provide guarantee funds of a minimum of US$15,000 or 120
\npercent of its average sales over 15 days. Previously, the
\nguarantee required was only 40 percent of average sales over 15
\ndays. IATA and Asita agreed last month that the agencies'
\ndeposits under the Plan Save 5 scheme may be used to pay the
\nguarantee.<\/p>\n
Members of the Golkar faction of Commission V of the House who
\nmet with the travel executives on Wednesday promised to discuss
\nthe problem with related parties and said they would urge the
\ngovernment to suspend Plan Save 5 because, as reported by the
\nexecutives, the new rate of the guarantee funds will hamper the
\noperations of smaller agencies.<\/p>\n
Herlambang said yesterday that Asita groups 1,600 agencies,
\n231 of which are members of IATA.<\/p>\n
\"Only 27 of Asita's members are opposed to Plan Save 5. I
\ndon't know why they don't agree because the scheme is quite
\nproper for better business. Maybe certain parties want --
\npolitically -- to see Asita in a mess and failing to carry out
\nits mission to help improve the tourist industry,\" he said.<\/p>\n
Plan Save 5 was introduced in November 1993 with the aim of
\npreventing price wars between agencies. The five percentage
\npoints of the commissions must be deposited with the state-owned
\nBank Bumi Daya, which offers an annual interest of seven percent
\non the money. After two years, 50 percent of the interest on the
\ndeposits is paid to the Indonesian Tourism Promotion Board for
\nthe promotion of Indonesia's tourist industry abroad, while the
\nother 50 percent may be withdrawn by the depositors.<\/p>\n
Yesterday's press conference was also attended by officials
\nfrom the Ministry of Tourism, Post and Telecommunications and the
\nMinistry of Transportation.<\/p>\n
Effects<\/p>\n
The Directorate General of Tourism's Director for Travel
\nAgents Azhari Abdullah said that the government was in agreement
\nwith the savings scheme which, he said, offers several multiplier
\neffects for the development of Indonesia's tourist industry.<\/p>\n
Separately yesterday, Minister of Tourism, Post and
\nTelecommunications Joop Ave declined to comment on the matter,
\nsaying the parties concerned would have to reach a consensus
\namong themselves.<\/p>\n
Meanwhile, IATA's manager for agency service, billing and
\nsettlement plans in Indonesia, Djuarsa Joedadibrata, said that
\nthe 120 percent financial guarantee was significantly lower than
\nthose in other countries in Asia.<\/p>\n
\"For instance, the rate is 200 percent in Thailand, Malaysia
\nand Cambodia, 150 percent in Taiwan and 300 percent in South
\nKorea,\" he said.<\/p>\n
He said that IATA groups 231 international airlines, some 40
\nof which serve Indonesia.<\/p>\n
Djuarsa said that IATA had raised the financial guarantees in
\nIndonesia because many airlines had to face higher risks of
\ndelayed payments.<\/p>\n
\"At this stage about 20 percent of payments are delayed,\" he
\nsaid, adding that in Indonesia total outbound tickets came to
\nabout $500 million per year.<\/p>\n
According to Djuarsa, the decision on the guarantee fund
\nincrease was made by a committee called the National Executive
\nCouncil which groups 15 parties including 13 airlines, Asita and
\nIATA. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/tour-association-to-proceed-with-savings-scheme-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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