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Thai trade opposes common fund

Thailand, Laos agree to boost trade and economy

Investors given more options with overseas securities

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Thai trade opposes common fund

Mark Bode (TTG Asia)
Thai travel agents are up in arms over a proposed new act that leading industry figures said would punish honest agents for the practices of unethical operators.

ATTA president, Mr. Apichart Sankary, says the idea of a fund is “unacceptable.”

The Federation of Thai Tourism Associations (FETTA) - which includes the Association of Thai Travel Agents (ATTA) and the Thai Travel Agents Association (TTAA) - is lobbying against the second revision of the Travel Agency Business and Guide Act drafted by the Ministry of Tourism and Sports in 2002. The revision is being carried out by the National Legislative Committee’s Industry and Tourism Committee. It is expected to be finalised by the end of August.
ATTA president, Mr. Apichart Sankary, said that under the proposed act, agents would be required to contribute to a common fund instead of the current “guarantee money” method paid to the Tourism Authority of Thailand. The amount would be used as a reserve for customers who had been cheated.
Mr. Apichart added: “What I’m worried about is that there are so many agents who are not honest. When this lump sum money is gone, they’ll have to keep asking us for more money and we’ll have to keep pooling it. If someone does something wrong, then we have to pay on their behalf.”
He said agents did not mind paying a higher security deposit if it benefited customers, but the fund was unacceptable.
Apichart added that under the act, businesses that closed would only be reimbursed half the money they deposited into the fund. “At the moment, when you don’t want to be in business anymore you get the money back without interest. If this new act is passed, you can only take back 50 per cent if you close your business.”
Inbound and outbound agents currently pay a security deposit of 100,000 baht (US$3,300) and 200,000 baht, respectively.
Apichart said: “We don’t know how much we’ll have to pay if the act is passed. All we know is once the lump sum is gone, we’ll have to pay more.”
The make-up of the committee that would oversee the fund is also causing concern, as it is thought more than half its members would come from the government, while there would only be two travel agent representatives. TTAA president, Mr. Anake Srishevachart, said: “For us to have only two voices on the committee is unacceptable. We should make up at least half the committee.”
He said the government should scrap the act and look to other countries for ideas.
“Some countries have a registration fee - it’s like guarantee money - and the money’s kept in something like a registration office. So we might want to look to other countries. We definitely don’t want the fund - we don’t know how much money we’ll have to pay and whether it will be collected yearly.”
Alternatively, agents might be prepared to pay a slightly higher security deposit, Mr Anake said, adding: “At least the money’s still ours and not the government’s.”
Skadia Travel general manager, Mr. Korpong Lahfahroengron, said the proposed act was causing agents great concern. “If something happens involving 10 or more agents, what about the money. We lose, lose, lose. Good travel agents must invest and invest.”

Thailand, Laos agree to boost trade and economy

Thailand and Laos have joined forces to double their total trade value by 2010 and will organise an expo to promote their products at the beginning of next month.
Thai Commerce Minister Krirkkrai Jirapaet and Nam Viyaket, the Lao Minister of Industry and Commerce recently endorsed an agreement to boost the level of economy, trade, and investment between the two countries.
The two sides plan to double the value of their mutual trade by 2010 and in the same timeframe triple the value of Lao exports, including electricity, to Thailand.
The Thai ministry of commerce also plans to organise a Thai-Indochina Trade Fair 2007 beginning August 31 through September 9 at the city hall in Thailand’s northeastern province of Ubon Ratchathani to promote trade between the Mekong countries.
Entrepreneurs from Cambodia, Laos, Vietnam, and Thailand will showcase their products such as food, handicrafts, herbs, spa and tourism products, at more than 500 booths.
On August 29, Thailand and Lao officials will hold a seminar to discuss preparations for the establishment of the ASEAN Economic Community (AEC) in 2012. The following day, August 30, senior Thai officials of the Office of Commercial Affairs and Lao trade officials will meet to discuss Thai-Lao trade and the plan for shared economic cooperation.
A number of Thai provinces and their Lao counterparts are already large trading partners and the pilot project to develop local entrepreneurs will, once implemented, help to further develop economic ties. (TNA)