Consumer watchdog demands tighter safeguards against bankrupt travel agencies

Agencies must provide a security bond.

The Consumers Association of Singapore (CASE) is demanding better safeguards for travellers in the event of the sudden closure of travel agencies.

This follows the abrupt closure of Asia-Euro Holidays Pte Ltd, which folded in May and left hundreds of consumers in the lurch.

Apart from this recent incident, CASE noted that it has received more than 500 complaints from consumers on the sudden closure of travel agencies in the past three years.

CASE has asked the Singapore Tourism Board (STB) to consider an amendment in the Travel Agents Act to mandate all travel agencies to provide a security bond to consumers.

The bond will be pegged at a certain percentage of the travel agency's yearly revenue to protect travellers.

"With a security bond in place, consumers who had previously purchased a travel package from a travel agent would at least be able toclaim part of the amount paid for the travel package," said CASE President Lim Biow Chuan.