The Tourism Department’s plan to reinstate the security deposit for tour companies at the pre-pandemic rate will not help curb fraud against tourists, instead increasing the burden on licensed operators, according to the Thai Travel Agents Association (TTAA).
The group said the authority should instead focus on regulating high-risk and illegal operators.
The Tourism and Sports Ministry is conducting a public hearing on the website law.go.th until next month regarding a ministerial draft specifying the security deposit amount for tour companies, which is required under the Tourism Business and Guide Act.
Jaturon Phakdeewanit, director-general of the department, said the authority wants to reinstate the 2019 deposit amount after reducing it to mitigate the impact of the pandemic on tour operators.
Under the new regulation, tour companies offering services in a specific area or the domestic market are mandated to place a security deposit of 10,000 baht or 50,000 baht respectively, up from the reduced rates of 3,000 baht and 15,000 baht.
Meanwhile, inbound tour companies and general tour companies offering outbound packages are required to deposit 100,000 baht and 200,000 baht respectively, up from 30,000 baht and 60,000 baht.
In recent years, there have been numerous cases of tour companies defrauding travellers, particularly outbound tour operators, said Mr Jaturon.
The paltry security deposits were insufficient to compensate victims, leaving many waiting until lawsuits against the perpetrators could be concluded.
“The higher amount should make businesses more cautious in their operations,” he said.
According to the Tourism Department, the main objective of this deposit is to provide advance compensation for tourists affected by tour operators that breach agreements, advertisements and requirements specified under the law.
These offences include abandoning tour groups and providing services that do not match ads, said Mr Jaturon.
“Increasing the deposit amount may improve protection and compensation for tourists in cases of damage to some extent. However, if the primary objective is to reduce fraud or scams against tourists, this may not be a direct solution,” said Kanlayanee Assanee, president of TTAA.
Instead, she said the move will create a burden for licensed companies and could impact their liquidity, especially small and medium-sized operators, while those who intentionally deceive tourists and illegal tour companies are not addressed.
Mrs Kanlayanee said the authority should focus on regulating high-risk operators, cracking down on illegal vendors and addressing complaints quickly.
Meanwhile, the deposit hike should be calculated at an appropriate rate based on actual economic conditions, rather than simply aiming for the same rate as before the pandemic, she noted.
The authorities should also summarise data from previous cases involving damage, including the causes of the problems, the types of operators involved and how effectively the deposit helped mitigate the impact, said Mrs Kanlayanee.
All feedback from the hearing will be considered by the Tourism Business and Guide Committee, chaired by the ministry’s permanent secretary and comprising representatives from private stakeholders, said Mr Jaturon.