Agencies slam NATAS for lack of transparency

SINGAPORE — Dozens of travel agencies yesterday lashed out at the National Association of Travel Agents Singapore (NATAS) for its lack of transparency over the usage of proceeds from its mega travel fairs and, among other things, its refusal to open the books, at a press conference attended by representatives of 24 tour agencies.

The agencies also charged that the association was exploiting its members by not reducing rental rates for the NATAS fair — an agency would need to pay between S$100,000 and S$200,000 to participate in the fair — despite declining sales over the years that they attributed partly to the lacklustre publicity for the twice-yearly event.

Responding to the charges, a NATAS spokesman said that although the cost of renting exhibition halls has steadily risen over the past three years, the association — which has been holding its travel fairs at Singapore Expo — has not passed on the increases to the exhibitors. He said NATAS has been in discussion with members and exhibitors about their grievances. “But we have to accept that NATAS may be unable to satisfy all its members given the diversity of our membership ... Everyone may have a different opinion on how the fair ought to be run,” he said, adding that NATAS members include travel agents, tourism organisations, cruise lines and accommodation providers.

Last week, TODAY broke the news that the Big Four travel agencies — Chan Brothers Travel, CTC Travel, Dynasty Travel and SA Tours — were pulling out of the NATAS fair on March 27 to 29 and holding a rival fair at Marina Bay Sands (MBS) on the same dates, and were in talks with other agencies to make the switch.

‘Better deals for consumers’

At the press conference held at MBS, it was announced that 24 outbound travel agencies in total — including Nam Ho Travel, Farmosa Holidays, MISA Travel, Apple Holidays and New Shan Travel — will be crossing over to the new fair. In contrast to the NATAS fair which charges a S$4 entrance fee, admission to the rival trade show is free.

The agencies — which will continue to be NATAS members — have formed a working committee to organise the rival fair, which will occupy a floor area that is 70 per cent the size of the NATAS fair next year. Booth rental will be up to 30 per cent cheaper. Excess revenue will be channelled to advertising and promotions or refunded to exhibitors. Cost savings will also be passed onto consumers, who will get better deals, the agencies said.

They said their dissatisfaction began in 2010. Despite raising the issues repeatedly, NATAS turned a deaf ear. They also submitted a petition last month, but the requests were not met, which was the last straw, they said.

The agencies had petitioned for reduced booth rentals, lowering of admission fees, disallowing overseas operators brought in by tourism boards to conduct sales, greater transparency and having representation on the NATAS fair organising committee.

The most recent NATAS fair in August saw about 10 per cent fewer visitors, compared with the fair held in August last year. Sales for several participating agencies this year had also fallen by around 10 to 20 per cent, the agencies said. They added that with customers increasingly making bookings via the Internet, holding a fair that charges an admission fee would further deter prospective customers.

NATAS responds

Former NATAS group chief executive Robert Khoo, who stepped down last year, dismissed the agencies’ claims. “Customers are (getting fewer) simply because ... everybody is doing their own fair. So they have already stolen a big chunk of the business before the NATAS fair even starts,” he said.

Mr Khoo said the admission fee — raised from S$3 in 2010 — was in place for crowd control. Members had “fully supported (the) rationale” when NATAS explained it to them many years ago, he said. He added that the income earned from the fair is ploughed back into events for members, who can attend them for free. These include NATAS’ annual dinner and dance, football and golf tournaments, and seminars.

The NATAS spokesman said attendance at its fairs “may have reached a saturation point in recent years”. “It is unrealistic to expect growth year-on-year when consumers’ buying patterns have changed drastically,” he said. On the impact of the pullout, the spokesman said NATAS has a membership base of more than 340 travel agents. It will revamp its fairs and try to draw in new exhibitors. In light of the developments, NATAS will meet its members tomorrow.

Still, the agencies boycotting the NATAS fair said they will return to the fold if the association addresses their grievances. Mr Anthony Chan, group managing director of Chan Brothers Travel, said: “We are all very busy ... we don’t want to spend effort organising travel fairs.”