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Baliís Glut of Travel Agents

ASITA Calls for a Freeze on New Travel Agent Licenses in Bali

(12/24/2012) The Jakarta Post reports that the Bali chapter of the Indonesian Association of Indonesian Tour and Travel Agents (ASITA-Bali) is urging Bali’s provincial government and its regencies to stop issuing operating permits and licenses for new travel agents.

I Ketut Ardana, chairman of ASITA-Bali claims there is an oversupply of travel agents Bali, adding: 

“The government must issue a stronger regulation on the moratorium of new travel agencies for the next few years.

Ardana has sent a letter outlining ASITA’s position to the Provincial Investment Coordinating Board (BKPMD) mentioning a joint 2011 study carried out by ASITA and Bali’s Udayana University that confirmed the level of travel agents in Bali far exceeds current demand.

Added Ardana, “We have delivered the results to the provincial administration and have frequently asked the governor to translate the study into a policy or a regulation.”

In a random sample of 100 Bali travel agents, a majority was found to be handling minimum number of tourists and producing low revenues.

Ardana blamed part of the problem on the large number of unregistered travel agents and the intense competition between local and foreign-based travel agents.