Agents left out of pocket
by ‘endorsed’ operator SOUTH African travel
agents operate in
a market where the
absence of guarantees and
bonding make trust a key
factor. They rely on tourism
authorities for references
when dealing with ground
handlers and operators
abroad. So when a tourism
authority introduces agents to
a foreign supplier, is this an
endorsement that means they
should then take responsibility
in the event of that supplier
defaulting, or are agents on
their own?
Md of Club Travel, Wally
Gaynor, has claimed such an
incident happened in October
last year when the Dubai
Department of Tourism and
Commerce Marketing (DTCM)
organised a road show across
South Africa, giving the travel
trade the opportunity to meet
and interact with delegates
from Dubai, including the tour
operator, Quality Tours. The
operator ceased operations
in December and six South
African tour operators and
travel agents were affected,
three of which are associates
of Club Travel.
“South African tour operators
and agents would not have
known about this operator
and not trusted dealing with
them but for the Dubai Tourism
Board connection,” says Wally.
“They were endorsed by Dubai
Tourism and feature on their
website.
“None of the agencies
abdicated responsibility to
their clients. Distant Travel &
Tours lost R200 000, which
she could not afford as a
small operator but took the
money from her bond to sort
out her clients. If any of these
affected entities had told their
clients ‘it’s not my problem’
we would have read about it
in the Sunday Times and again
our industry would have being
tarnished like many times in
the past,” he said.
Wally believes the DTCM has
a “legal and definitely moral
responsibility to do good by
these people”. He adds: “I am
willing to facilitate our partners
and those others affected
to join together and do one
class action against the Dubai
Tourism Board.”
The DTCM did not respond
to TNW’s specific questions
about why Quality Tours was
selected to participate in the
road show and whether or not
it believes DTCM should be
liable for the damages South
African agencies and tour
operators suffered. Instead,
it issued a statement saying
it had been made aware that
certain tourism operators had
been affected by the closure of
Quality Tours.
It said: “The DTCM is
mandated to license tourism
establishments and travel
agents in the Emirate of
Dubai. Quality Tours, an
independent limited liability
company, holds a licence
permitting it to provide
inward travel services… Their
current licence [expired] on
March 24. The DTCM had no
knowledge that Quality Tours
intended to cease trading.”
DTCM adds that it has opened
an investigation into the
circumstances surrounding
Quality Tours’ closure.
While he is not consulting
on the case, Gareth Cremen
of Ramsay Webber, says in
a situation like this, travel
agents may have a leg to
stand on. “Without seeing
the documentation, it sounds
as if Club Travel has a case.”
He says the tourism authority
endorsed an operator that was
not reputable and that the tour
operators and travel agents
would not have done business
with the operator if it wasn’t
for this.
