Asita presents Plan Save-5 deposits to agents
Asita presents Plan Save-5 deposits to agents
JAKARTA (JP): The Association of Indonesian Tour and Travel Agencies (Asita) presented US$12.5 million from its Plan Save-5 savings program to its sub-agents, allaying their fears of unfair deposit distribution.
"The recent distribution of deposits has eliminated fears that the agents and sub-agents cannot manage the distribution the Plan Save deposits fairly," said Andi Mappi Sammeng, the director general of tourism.
Asita's Plan Save-5 requires its members to turn over five percentage points of the nine percent commission charged by airlines.
It was agreed in November 1993 that, after two years, 50 percent of the interest earned would be paid to the Indonesian Tourism Promotion Board, while the remaining 50 percent could be withdrawn by the depositors.
Under the International Air Transport Association (IATA)'s new policy, each tour and travel agency is required to provide guarantee funds of a minimum of $15,000, or 120 percent of its average sales, in 15 days. Previously the guarantee funds were set at only 40 percent.
Under the IATA and Asita agreement, the agencies' deposits can be used to pay for the guarantee funds.
Since the program was implemented in November 1993, nearly $25 million in deposits and interest has been raised through the state-owned Bank Bumi Daya.
Asita's chairman, Sri Mulyono Herlambang, said that in addition to paying for the new guarantee funds, Plan Save-5 was also aimed at preventing price wars between agencies.
He said that the withdrawal of deposits and their distribution to sub-agents proved that the plan was by no means causing losses to the sub-agents as they had previously feared.
"Now the sub-agents can see that they get benefits just like their agents," he said.
According to Herlambang, of the 248 agents which already have accreditation from ASITA, 18 still oppose the plan.
Asked about the sanctions on agents which fail to provide guarantee funds, Herlambang said that the matter would be discussed this month when Asita holds its meeting in North Sumatra's provincial capital of Medan. (03)