TAIPEI (Taiwan News) — Taiwan plans to increase the performance bond required by travel agencies after tourists were left stranded, the Tourism Administration confirmed Friday (Nov. 8).
The bond, which has not been adjusted since 2007, will be raised two to four times the current amount. The changes are expected to take effect in January, per CNA.
The move comes after two major incidents involving Taiwanese travel agencies Mika Tour (年代旅遊) and The Grand Tour Travel (壯遊旅行社). The increased performance bond aims to provide financial protection for travelers in case a travel agency fails to fulfill its obligations.
Proposed adjustments include increasing the performance bond for Class-B travel agencies from NT$2 million (US$62,000) to NT$8 million. Bonds for Class-A travel agencies will be adjusted from NT$5 million to NT$15 million, and comprehensive travel agencies from NT$40 million to NT$80 million.
Class-B travel agencies primarily focus on domestic operations. Class-A travel agencies offer a broader range of services, including both inbound and outbound tourism.
A dispute between Mika Tour and a local ground operator led to 292 tourists being stranded on Vietnam's Phu Quoc Island in February. The airline responsible for picking up the tourists has also not received payment from the travel agency, according to RTI and Yahoo News.
Also, a group of Taiwanese who paid NT$200,000 each for a Croatia tour were unexpectedly asked to pay an additional NT$69,000 per person by a local travel agency in October, per Taiwan News. The agency cited non-payment from the Taiwanese tour operator, The Grand Tour Travel, as the reason for the additional fee.
