Monday, December 18, 2017

Tourism officials request cancellation of financial guarantees

Officials from the Association of Tour Operators Russian (ATOR) of State Duma recently requested that the tourism industry cancel financial guarantees for tour operator activities.

ATOR said the financial gain from the tour activities do not adequately or effectively protect consumers.

ATOR said that insurers find tour operators to be unprofitable. Many of the larger insurance companies have left the tourist industry. With further financial guarantees, the insurance companies will continue to leave the tourism market.

The alternative would be bank guarantees, but ATOR said this method would be inefficient. Banks will not offer guarantees that exceed approximately $490,000 U.S. ATOR also said bank guarantees cannot be trusted in the current economic crisis.

ATOR’s State Duma was one of six tourist companies to cease its services in July and August 2014. The company was still able to recover most, but not all, of its losses from an insurance company.

Tour operators have suggested that the industry use a voluntary system to safeguard funds.

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