The Ministry of Trade and Industry (MTI) and the Singapore Tourism Board (STB) are currently seeking feedback on the proposed amendments to the Travel Agents Act and Regulations, as part of a public consultation exercise running from now until July 12, 2017.
The review of the Travel Agents Act and Regulations is part of the Singapore government’s continual efforts to strengthen the regulatory framework and facilitate a pro-business environment in the travel agents industry as well as enhance consumer protection.
Among the key amendments to Singapore’s Travel Agents Act and Regulations proposed by the MTI and STB include licence exemption for entities providing walking or bicycle tours, expansion of consumer safeguards, and removal of the Banker’s Guarantee option in lieu of meeting the net worth requirement to be licensed.
As part of a tiered licensing regime, entities that sell or arrange tours within Singapore without passenger-carrying conveyance, such as walking or bicycle tours, would be exempted from a travel agent licence. As well, entities selling or arranging tours without accommodation can apply for a restricted licence with a lower paid-up capital and net worth requirement.
Travel agents would no longer be required to purchase fidelity insurance, and there will be an added provision allowing pro-rated refunds in cases where some products have been consumed.
Another proposed change is the reduction of “show cause” period – i.e. time given to agents to explain why they should be allowed to retain their licence when issued with notice of suspension or revocation – from 21 days to 14 days.
Moreover, to ensure consumers are aware of precautions against sudden closures, there would be the legislation of the additional licensing condition requirement for agents to seek the decision of consumers to consider purchasing travel insurance covering for insolvency.
Consumer safeguards – including on changes to tour, inaccurate advertisements, booking cancellations and dispute settlements – would also be expanded beyond just sightseeing and shopping tours.
Moreover, the maximum fine for unlicensed travel agent activities would be raised to S$25,000 (US$18,011) from S$10,000 while the maximum composition sum for compoundable offences would be raised to $5,000, or half the maximum fine prescribed, whichever is the lower. Administrative financial penalties would also be introduced and set at a maximum of S$2,000. These proposed amendments aim to serve a stronger deterrent effect.
The option to provide a Banker’s Guarantee in lieu of meeting the minimum S$100,000 net worth requirement to be licensed would be removed, as STB deems it neither provides assurance of financially sustainability nor direct recourse in the event of insolvency.
Comments and feedback on the proposed amendments to the Travel Agents Act and Regulation can be sent to mti_feedback@mti.gov.sg.
