Garuda's discount plan meets resistance from travel agents
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)