Garuda's discount plan meets resistance from travel agents

JAKARTA (JP): Legislators from the ruling Golkar and owners of travel agencies were up in arms yesterday against "Plan Save 5", a government-sponsored scheme aimed and at limiting ticket discounts and controlling what travel agencies do with their commissions.

They urged the Directorate General of Tourism, the Association of Indonesian Tours and Travel Agencies (Asita) and the International Air Transport Association (IATA) to drop the plan, which they said will lead small travel agents to bankruptcy.

Fifteen owners and operators of tour and travel agencies led by Gunariah Kartasasmita Mochdie took their protest to the Golkar faction at the House of Representatives (DPR) yesterday.

Gunariah, who is deputy treasurer of Golkar, charged that the government, Asita and IATA had not consulted tour and travel agencies before introducing the scheme.

"It's an authoritarian move that will take its toll on thousands of small agents and cause the loss of tens of thousands of jobs," Gunariah said.

Yesterday's protest was the latest open resistance to the unpopular Plan Save 5, which has been approved by the director general of tourism, the directorate general of air transportation and the Indonesian Air Carriers Association (Inaca).

The scheme, originally supposed to be effective as of March 1, requires tour and travel agencies to deposit five percent of the nine-percent commission they receive from airlines in the state- owned Bank Bumi Daya. The agencies may withdraw the funds two years later but must give 50 percent of the interest to the Indonesian Tourism Promotion Board.

Competition

The government initiated the policy to stop the tight competition which tour and travel agencies have responded to by passing seven to eight percent of their commissions on to customers.

Gunariah said the Plan Save 5 policy could mean the end of small agencies because they will lose the ability to discount tickets and attract customers.

Legislators Ben Messakh, Budi Haryanto and Mudjahit said that the scheme should be imposed on large scale agents which monopolize air ticket sales, such as Smiling Travel, Setia Travel, Anta Travel, Putra Tanjung and Bayu Buana Travel.

Messakh alleged that government officials, Asita, IATA and travel firms are colluding to drive small operators out of business.

"This must be stopped. The minister of tourism, post and telecommunication and the minister of transportation should resolve the problem," he said.

Budi added that the Golkar faction will propose that the government review its policies on air ticket sales. (pan)