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Jakarta Post

Union to fight unlicensed travel agencies

The Bali chapter of the Association of the Indonesia Tours and Travel Agencies (Asita) plans to file a police report alleging that scores of online travel agencies are operating without license, chairman of the association said Tuesday

Luh De Suriyani (The Jakarta Post)
Denpasar
Wed, December 10, 2008 Published on Dec. 10, 2008 Published on 2008-12-10T10:56:30+07:00

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The Bali chapter of the Association of the Indonesia Tours and Travel Agencies (Asita) plans to file a police report alleging that scores of online travel agencies are operating without license, chairman of the association said Tuesday.

Bali chapter's chairman Al Purwa said the association was compiling a list of agencies allegedly operating illegally.

"We will submit the list to the Bali Tourism Agency," he said, adding that the government agency would then coordinate with the local police in taking action against those found to be felonious.

Purwa said the number of online travel agencies had continuously increased, adding that some were managed by individuals and others by companies.

The move against the travel agencies, Purwa said, was necessary because their operations had disadvantaged several licensed travel agencies.

ASITA Bali has a total of 340 members. Around 100 licensed travel agencies have yet to join ASITA.

"Some licensed travel agencies have complained about the operations of these unlicensed online travel agencies. These online travel agencies earned commissions through selling tour packages, rooms and transport but they have never paid any taxes to our government. This is clearly an illegal operation," he said.

Purwa did not disclose the actual number of the online travel agencies it was investigating.

"We are still in the process of compiling and verifying the data," he said.

The verification process, he said, would be easy as licensed travel agencies would be able to present on request several documents, including a taxpayer primary identity number.

Sanat Kumara, an owner of a licensed online travel agency, said he supported ASITA's move, but added that licensed travel agencies should be able to compete against unlicensed ones.

"The Internet is a free world. The one with the best price and service shall win the competition," he said.

However, ASITA's move was questioned by Kadek Didi Suprapta, who runs what he claimed to be a small online travel agency

"I believe every individual has the right to pursue his livelihood, particularly people like us, who only have little capital," he said.

Suprapta said his agency offered very personal and flexible tour packages.

"This intimate approach is the key behind the success of online travel agencies," he added.

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