The Consumers' Foundation blasted the Tourism Bureau yesterday for not warning consumers about travel agencies with shaky finances.
A spotlight was put on travel agents unexpectedly going bust when the news reported that the head of the Hsiang Chuan travel agency ran off with more than NT$4 million (US$122,000), stranding 42 tourists in China.
Chinese tour operators that were owed money by Hsiang Chuan extracted more money from the stranded tourists even though they had already paid in full for their trips.
"There is a problem with the system," foundation chairman Cheng Hung-jen (
"Hsiang Chuan was audited just one week before its collapse," he said. "Why did the Tourism Bureau not issue a warning to the consumers against traveling with Hsiang Chuan?"
"Is the auditing process so flawed that the bureau did not detect the the problem? Or is the bureau content to let consumers tread on `landmines' instead of warning them?" he added.
The Tourism Bureau, under the Ministry of Transportation and Communications (MOTC), released a list of 27 agencies on Wednesday it considered in financial jeopardy serious enough to place in the "red-light" category.
However, the list of companies in the "yellow light" category will not be released to the public because of fears that businesses will be adversely affected.
The foundation said the release of the list is too little too late.
"By the time a company gets on the red light list, it is on its last legs," said Cheng. "The tourism bureau also needs to release the yellow light list so that consumers can make an informed choice."
When asked whether releasing the yellow light list would make company collapses a self-fulfilling prophesy, Cheng said the Bureau's top priority should be to protect consumers, not travel agents.
"If it looks like a company can't stay in business, consumers need to be warned that they might unexpectedly fail," Cheng said. "Once they improve their finances, then they can get themselves taken off the yellow light list."
In the meantime, the foundation offered advice to travelers on how to protect themselves.
"Stay away from groups where the costs are unrealistically low," Cheng said. "Always sign a standard contract with tour operators to protect your rights, and pay by credit card so that if a firm goes bust the payment can be stopped."
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