0 Online travel business needs strict regulation

Organized by the Indonesian Tourism Industry Association (GIPI) Bali chapter, the discussion aimed to find a solution to the complicated and tricky problem of online tourism businesses in Bali. Made Eddy Putra from the Association of Indonesian Tour and Travel Agencies (ASITA) Bali regretted that the government had done nothing to regulate unregistered online travel businesses. 

“The players in the online businesses are mostly foreigners working in Indonesia, Bali in particular. They are profiting from sophisticated technology to run their business, ignoring the existing regulations in the place they operate,” Putra said. He further said that they (the online business people) would never pay any tax to the Indonesian government and protection for their customers was also scarce. 

“We have never waged a war against online businesses but they have to abide by the regulations set by the destination country,” he said. Made Gunawan, director of Agoda.com for Indonesia, explained that online tourism business had been flourishing in the country and across the world. In the last five years, online travel and hotel businesses had been growing fast due to the global financial crises. 

Agoda.com, said Gunawan, had set up cooperation with 4,200 hotels and accommodation facilities across Indonesia, around 50 percent of which were in Bali. “Bali is an extraordinary magnet. Business people outside Bali, and even from foreign countries, have seen this great business opportunity,” Gunawan said. Generally, larger online businesses have already registered their ventures with related ministries or agencies in their own countries. All the regulations regarding online businesses are under the World Trade Organization (WTO). 

“Any party opening a large online business must report its activities to the authorities in its operating country,” he said. Gunawan, admitted that many individuals and companies had deliberately ignored the regulation while operating online businesses. “Whether you like it or not, online businesses have contributed a lot to the island’s tourism. Clients of online travel business are young people or first-time travelers,” he said. Putu Budiasa, head of Denpasar Tourism office, said that online business must be regulated to protect the local players. “Research and comprehensive study are badly needed to create a real mapping for tourism,” he said.

source : bali daily