Rules ruffle agents feathers

12 Mar 2015  2039 | World Travel News

ANGON Myanmar’s regulations governing tour companies wanting to sell outbound travel are too restrictive according to a group of around 120 companies that are members of the Union of Myanmar Travel Associations.
They are objecting mainly to a financial guarantee that would be paid into a fund to rescue stranded travellers if an outbound travel company went bust.
The Ministry of Hotels and Tourism is inviting travel and tour companies to apply for outbound licences, after a regulation on outbound travel was passed, 1 February.
Up until 1 February, travel firms were registered to offer inbound or domestic tourism, while outbound travel was not a legal business option.
inside no 1Myanmar Times quoted the ministry director U Myo Win Nyunt as saying: “Licences are not open to all. Applicants must provide a guarantee of K10 million (USD9,700) and they will need to prove they have at least two years’ experience organising tours inside Myanmar before they can handle outbound travel.”
Applicants must also have the backing of the Union of Myanmar Travel Association.
The actual a licence fee costs only K400,000 (USD388).
The director said the guarantee was required to compensate travellers, or foreign tour companies, in the event of a dispute, or a company’s closure that led to Myanmar nationals being stranded overseas.
The conditions prompted more than 120 members of the UMTA to submit objections, Myanmar Times reported. They made their objections to the association, which in turn passed the complaint to the Ministry of Hotels and Tourism.
According to Myanmar Myat Cherry Travel and Tours managing director, Daw Cherry Win, the conditions would prevent small companies from selling overseas tours.
However, it is very likely that the ministry does not want small firms to enter the outbound market as the possibility of a financial default would increase with smaller firms as they have inadequate capital. The deposit and the requirement for two years’ experience aren’t necessary so more than 120 tour companies had already objected to the UMTA as of 28 February,” said Daw Cherry Win.
“They should be allowed to operate without unnecessary rules as long as they can provide proper service and ensure safety,” she suggested.
UMTA general secretary, U Naung Naung, told Myanmar Times the deposit would be difficult for small companies, but some regulations to control outbound tours were necessary.
“We will continue to report on the opinions of our members to the ministry, but some travel agents don’t pay enough attention to consumer rights. We have to protect consumers as well as giving a chance for SMEs to business.”
He cited: “If we can create a system that would guarantee appropriate compensation to tourists while at the same time collecting a deposit less than K10 million (USD9,700), that would be a win-win situation.”
Local operators would be able to legally partner with foreign companies. It would involve foreign exchange payments as local travel firms would need to pay overseas partners and hotels for land content and accommodation.
Most of the companies expanding into the outbound market will already have their inbound licenses and have a solid track record in tourism services. Very few start-up companies will go into the outbound travel on an exclusive basis as the market is too small, but for companies that already have inbound operations they may decided to open a subsidiary to sell outbound travel.
The new rules will benefit citizens travelling overseas mostly for medical treatment, tourism and other reasons. They will have legal guarantees and can complain if companies provide poor service.

sourced:ttrweekly.com 

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