In an effort to reduce travel agency fraud, Kenya’s Tourism Regulatory Authority has tightened travel agency licensing rules, making membership of a recognised industry association mandatory.
The move has sparked debate about whether a similar model could or should be adopted in South Africa.
Regulation faces barriers
Asata CEO, Otto de Vries, explained that implementing a Kenya-style model here would face significant barriers.
“For starters, in South Africa, no equivalent government licensing baseline exists. The Kenya Association of Travel Agents requires applicants to submit a valid Tourism Regulatory Authority licence as part of membership, which we simply don't have in South Africa,” said De Vries.
“Additionally, our voluntary association environment would make mandatory compliance contentious. Without government licensing requirements, enforcing association-based compliance gates becomes problematic.”
He added that Asata had operated as a self-regulating body for nearly 70 years, with zero fraud cases involving its members in the past decade.
Fraud outside the system
Jonathan Gerber, CEO of TAG Travel, believes that the majority of travel agent fraud in South Africa is by illegitimate travel agencies.
“There is no travel agency fraud in South Africa, there is only rogue travel agency fraud in South Africa. The problem is these rogue agencies offer deals that are too good to be true through people that are not licensed, not registered and are just fraudsters. Regulations will not stop those people as they are not compliant anyway,” said Gerber.
Strengthening existing system
In South Africa, consumer-facing travel businesses are primarily governed by general statutes like the Consumer Protection Act and related enforcement mechanisms, including accredited ombud schemes such as the Consumer Goods and Services Ombud (CGSO).
De Vries emphasised that CGSO registration, self-regulation, financial accountability and consumer education plays a more important role in reducing agency fraud in the South African market.
Asata does not currently verify CGSO registration as part of membership, however, De Vries said that if CGSO participation were widespread and practically enforceable across the sector, it could help curb some fraud by increasing accountability and improving early warning signals.
This includes non-delivery, misleading sales or refusal to refund that surfaced as consumer complaints, he said.
“However, CGSO membership is not a pre-vetting or licensing gate, so it won't automatically stop deliberate criminal scams. Impact depends on real compliance and consequences for businesses that operate outside formal channels,” said De Vries.
“Rather than creating new bureaucratic layers, we believe strengthening existing mechanisms like CGSO registration verification could provide additional consumer protection while preserving the entrepreneurial accessibility that has made travel a transformation success story.”
Consumer education essential
De Vries outlined Asata’s long-term strategy to combat fraud, which focuses on self-regulation, financial accountability and, importantly, consumer education.
“Education for consumers is a critical missing element in this issue,” said Gerber. “They need to be able to identify a legitimate agency versus a rogue one. They need to be educated on what a membership, such as Asata, means and what standards the agency then adheres to.”
