Tourism minister targets illegal travel agents

Parliament on Tuesday approved legislation to more harshly punish travel agents caught illegally transacting business, with fines of up to J$1 million.

Minister of Tourism Edmund Bartlett (MP, St James East Central), who piloted the bill amending the Travel Agency Regulation Act, said the rogue agencies were being operated by former travel agencies who were displaced from their jobs as airlines revised their reservation models.

The increase in the number of illegal travel agencies, Bartlett told the House of Representatives, was as a result of the reduction in commissions paid by airlines to the agencies, which are down from 9 per cent to 3 per cent.

"This reduced commission has caused a number of closures and mergers in some cases. So, with the decline in the number of travel agencies, some staff cuts occurred and some former travel agencies plus some new entrants decided to set up a number of unregistered agencies across the island," said the tourism minister.

He said the unregistered agencies are able in some cases to access tickets by sharing commissions, or piggybacking with registered travel agents buying tickets online or directly from airlines.

"This has resulted in a raft of unregistered travel agencies operating in this sector," said Bartlett. "Several of these unregistered travel agencies have got into trouble with customers who pay for travel which did not materialise."

Currently, unregistered travel agents are charged J$20 each day they operate illegally or imprisoned for up to 12 months on conviction in a Resident Magistrate's Court.

The new bill amends the penalties under Section 3 of the law to J$1 million, or a maximum custodial sentence of 12 months.

The bill also has to be passed by the Senate.

Registered travel agencies are required to secure a bond with surety in the sum of J$100,000, which is kept by the registrar of travel agencies, to offset claims in the event the agency develops financial difficulties or is unable to refund tickets.

The unregistered agencies have "no bond or insurance and, therefore, no protection for the client," the minister said.

"The intention is to amend section three of the Principal Act, to allow for an increase in penalties to a maximum fine of $1 million, or a maximum custodial sentence of 12 months," said Bartlett.

The amendments were supported by the Opposition.

"It's very important for us to ensure that the regulations are in place, and not just regulations, but the penalties," said tourism spokesman Dr Wykeham McNeill (MP, Westmoreland Western).

"It's something that we have to ensure that the regulation of this industry, which is so important to all of us, is maintained," McNeill, said.

- JIS