Industry reform to save agents millions, says minister
The looming repeal of the Travel Agents Act will deliver the industry millions of dollars in savings while eliminating outdated red tape, according to minister for fair trading Matthew Mason-Cox.
Mason-Cox described the scheme, which will be repealed nationally by June 30, as a “costly administrative burden” on the industry, with the advent of the internet and e-commerce rendering its licensing regime and associated Travel Compensation Fund (TCF) largely irrelevant.
“The Travel Agents Act regulated the industry in the late 1980s when there was virtually no alternative but to pay for travel using a travel agent,” he said.
“Since payments are now made to travel providers and through credit cards, the Travel Compensation Fund and licensing have become redundant with protections under the Australian Consumer Law being far more relevant to consumer travel purchases now and into the future.”
The reforms are particularly important for New South Wales because an estimated 40% of travel agents and 47% of industry revenue is generated within the state.
“The financial burden on Australian businesses has been between $19 million and $25 million, which is mainly attributable to the Travel Compensation requirements and that means our reforms will deliver real savings to business,” Mason-Cox said.
Meanwhile, the final round of workshops on the replacement ATAS accreditation scheme will be launched by the Australian Federation of Travel Agents in Brisbane tonight.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
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