RSS 
Related objects
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
 |
|
World video travel guide
Scheme Launched to Protect Visitors From Bust Tour Firms
TOURISTS who book holiday packages through local tour firms registered by Kenya Association of Tour Operators will now have financial protection in case a tour operator they have booked with goes out of business before executing the contract.
KATO has unveiled a bonding scheme that will see tourists protected from being stranded or losing money in the event that a tour company collapses after entering a deal but before honouring its obligation.
\"The Bonding Scheme is now fully in place and is fully supported by a leading local insurance company. This will go a long way towards enhancing the image and credibility of KATO members and is a major milestone for the association\" said KATO chairman Adam Jillo in a statement posted on the association\'s website. Under the provision of the bond, the insurance company which KATO did not disclose, will during the period of guarantee, indemnify any direct financial loss suffered by a client (or agent) of the association\'s member arising from un-rendered services in the event of a bankruptcy.
The loss to be compensated shall be monies paid for services or products to be provided by the insolvent KATO member and shall be limited to the amount paid to the insolvent member or the cost of completing the services paid for. KATO now becomes the second bonding scheme to be introduced in Africa. The association had been planning for the launch of the bonding scheme since the plan was approved unanimously by members during KATO annual general meeting held last October.
According to the association, there have been concerns by tourists going to various tourist destinations world-wide about the safety of deposits paid should a tour firm go into liquidation before delivering on the contracted services. Several global destinations like the UK have in place travel bonding schemes which are key in driving growth through market confidence, in the tourism and travel industry. For marketing purposes, KATO members will now be able to display the association\'s bonded logo on their websites. The logo will feature the member\'s KATO identification number which will ensure that it is not misused by firms that are not party to the bond.
