AT ITS conference on May
18-20, Asata announced the
appointment of a consulting
firm that will assess the merits
of self-regulation in the travel
industry.
“Having the industry
properly regulated would
allow for more effective risk
management, which in turn
ensures the protection of the
consumer because they’d be
engaging with someone who
is accredited,” said Otto de
Vries, ceo of Asata, to TNW.
Exp Compliance Consulting,
which comprises CA, Rianné
Potgieter and attorney,
Elizabeth de Stadler, has
been tasked with assessing
the advantages and
disadvantages, the options
available and the actions that
must be taken to achieve the
desired options of a regulated
industry.
Regulation exists on a
continuum, says Elizabeth.
This can range from stringent
mandatory regulation, imposed
by government for example,
to voluntary regulation, which
functions on an “if you don’t
like it, leave” basis, she says.
Several options exist in this
continuum, where aspects
of regulation, like business
accreditations and professional
designations, could be either
mandatory or voluntary.
So far, the consultants have
researched six international
travel agency bodies and five
SA associations in different
industries.
The team found that other
associations have been
able to enforce regulation
by using logo representation
and ensuring travel service
providers only trade with
members. Regulation could
also include the benefits
of training, business tools,
an alternative to dispute
resolution and marketing and
networking possibilities.
Ten out of the eleven
bodies investigated make
use of accreditation criteria
to supervise their members,
including trade references,
background checks, financial
soundness and the use
of fidelity fund insurance
certificates. The latter is
proof that consumers’ money
is held in a trust account
until paid to the supplier.
But, says Elizabeth,
regulation can be costly.
“We don’t want it to be so
expensive that we don’t
allow new entrants into the
market,” says Otto. Other
factors to consider are anticompetitive
behaviour and
the use of legislation which
can often be a slow drawnout
process, says Elizabeth.
On June 21, Asata will meet
with the Department
of Tourism to discuss
possible options. From July
17, the association will host
several workshops with its
members in Johannesburg,
Durban and Cape Town.
By August, Asata plans
to survey its members
on their attitudes to selfregulation
and soon after,
exp Compliance Consulting
will present their final
recommendations at a board
meeting which will then be
put to vote at Asata’s AGM
on September 28.
