DTTAG calls agents, license laws reformed
by ArabianBusiness.com staff writer on Friday, 01 June 2007
The reformed Dubai Travel & Tour Agents Group (DTTAG) is calling on the emirate's travel agents to sign up and help create a powerful united force.
Group president, Iain Andrew, the senior vice president of Dnata Agencies said it was vital travel agents and tour operators came on board to ensure they had access to advice, the latest information affecting their businesses, and representation when settling client or industry disputes.
Becoming a DTTAG member is even more advisable in light of a Government by-law to be enforced next year that imposes strict regulatory measures on agents and operators, charging them AED 200,000 (US $54,450) for every travel-related activity they operate.
"The by-law details what a travel agent will have to go through for licensing in future years and it will create difficulties for some of the smaller travel agencies to meet criteria," explained Andrew. "We want to at least explain to them the requirements."
The by-law identifies general sales agent, travel agent, outbound tour operator and inbound tour operator as the four travel activities liable for charges, meaning that any company involved in all four of these operations will be slapped with an AED 800,000 ($218,000) annual license fee by the Dubai Department of Tourism Commerce Marketing (DTCM).
Additional criteria that must be met for licensing includes providing a separate 40m² premises for each of these travel activities and employing at least one manager and three employees for each. Managers must have three years' experience if they are university trained or five years if they don't hold a degree. Travel companies have until July 31 to comply with all criteria.
"DTTAG will look at this by-law and its implications and help small agents if necessary," said Andrew.
"We will understand the law on their behalf."
The group's mission, he said was to "add value" and tackle common travel agent issues ranging from credit card and bank charges to refunds.
DTTAG's first meeting was staged on April 24 and attracted 56 participants. The group currently boasts 25 members including Dnata Agencies, MMI Travel, Al Rais Travel, Team Travel & Tours, Kanoo Travel, Al Naboodah Travel and Orient Travel.
The second meeting will take place on Monday June 18 at 9.30am, but the venue is yet to be confirmed.
Already DTTAG fees have been cut and will now be based on a tiered system according to the amount of revenue a travel company earns. A company earning less than AED 50 million annually will pay AED 2000 per year; those earning AED 50-100 million will pay AED 5000; and those earning more than AED 100 million will pay AED 10,000.
To reduce costs, the DTTAG office has been closed down and Al Rais Travel has offered office space.
Andrew is already in talks with training companies to negotiate good deals for hard and soft skills training.
Visit www.dubaitourism.ae/Circulars/default.asp?stat=LAW for more information on the by-law.
READERS' COMMENTS
Posted by Gautam on Thursday 14 June 2007 at 11:50 UAE time
I beleive that there is some wrong information about the "fee". The 200,000 AED per activity is a bank guarantee per activity and not a fee, can someone please clarify this. If this is the case, I beleive this should be well clarified by the publisher and be cautious the next time something like this is published, as it could be misleading. thank you
Click here to post a comment
MORE FROM ARABIANBUSINESS.COM
TOP IN MIDDLE EAST TRAVEL & HOSPITALITY
TOP MIDDLE EAST BUSINESS STORIES
ALSO IN MIDDLE EAST TRAVEL & HOSPITALITY
LATEST MIDDLE EAST BUSINESS NEWS
- Banking & Finance: Nakheel woes may benefit Islamic finance
- Technology: Bharti board clears $9bn offer for Zain - sources
- Culture & Society: 16,000 Kuwaitis changed last name for personal gain – report
- Politics & Economics: Bahrain arrests minister for money laundering - report
- Politics & Economics: No change in Saudi's family visa rules - paper
SHARE PRICE CHECK
RELATED STORIES
Dnata
- Dnata to complete deal for UK airports business
3 Dec '09 | News - Selling the bliss factor...
10 Jul '09 | Features - Show and tell
11 Feb '09 | Interviews
Dubai Tourism and Commerce Marketing (DTCM)
- Dubai cruise ship visits to double by 2013
23 Feb '10 | News - Papering over the cracks
6 Oct '09 | Comment - Tourist numbers up 4% in Dubai in Q2 - DTCM
19 Aug '09 | News





