TRAVEL AGENTS (Particulars)

Mr Yeo Choo Kok asked the Minister for Trade and Industry (a) how many travel agents have been registered; (b) how many of them have violated the law; (c) how many complaints have been received by the Singapore Tourist Promotion Board from the travelling public that they have been cheated by travel agents; and (d) in the light of the operation of the Travel Agents Act, whether the present law is adequate to protect the welfare of the travelling public.

The Minister for Finance and Acting Minister for Trade and Industry (Mr Hon Sui Sen): Mr Speaker, Sir, the Minister for Trade and Industry who has had to leave for Jakarta today has asked me to reply to this Question.

The Singapore Tourist Promotion Board has licensed 307 travel agencies under the Travel Agents Act and its supplementary Regulations of 1976.

Eight companies and one individual have violated the law. Eight of the offenders were prosecuted for operating as unlicensed travel agents. The remaining one offender, a licensed travel agent, was prosecuted for sharing commission with an unlicensed travel agent.

The Singapore Tourist Promotion Board has received 87 complaints of cheating by travel agents. Most of the complaints have been settled amicably between the parties concerned. There are only four outstanding complaints. Inquiries on these are being pursued by the Board of the cases settled, where the complaints of cheating were found to be justified, the travel agents concerned, on the advice of the Board, have paid compensation to the complainants. Where complaints of poor services have been proved, the travel agents concerned have been warned to improve their services. The Board has, therefore, been able to influence and control the travel agencies effectively.

The present law is adequate to protect the welfare of the travelling public. The Travel Agents Act requires travel agencies to have a minimum paid-up capital of $50,000, to provide to the STPB a bank guarantee of $10,000 and to make a non-refundable cash contribution of $1,000 to the Compensation Fund to be used to compensate persons suffering hardship or loss as a result of actions of travel agents. In addition, heavy penalties are provided in the Act to deter malpractices. The remedies under the Act have been publicised and are now well-known to the public. The Board will continue to be alert at all times to possible malpractices by travel agents.