The Southern Africa Tourism Services Association’s
(SATSA) Bonding Scheme, introduced at the beginning of March 2007,
and covering all SATSA members in good standing, offers security
and peace of mind to customers and tour operators who book holidays
or car rental in Southern Africa through SATSA members. The bonding
scheme is a type of financial guarantee that covers travelers
against possible losses of their advance or full payments held
by all SATSA members facing involuntary liquidation.
Over the past few years SATSA has received numerous requests
from members to explore the possibility of setting up this dedicated
bonding scheme. It has not been an easy task. Considering the
enormity of the rand value held in deposits and trust, it is clear
that the SATSA membership base could not finance any insurance
policy that would be all-embracing under any circumstances. However,
a start on some basic cover offered as a form of security and
integrity has been made, in line with international requirements
in this area.
The introduction of the SATSA Bonding Scheme contains two world
firsts, of which the South African tourism industry and SATSA
can be justly proud. According to Michael Tatalias, SATSA’s Chief
Executive Officer, no other member – driven private sector tourism
association in the world has voluntarily instigated a bonding
scheme without government support. Secondly, this is the first
destination bond on inbound tourism to have been introduced. This
should go some way towards making our destination that much more
competitive.
Cheryl Mulder-Verbruggen , SATSA National Prsident, says “one
of the ways SATSA leads in tourism is by implementation of our
bonding scheme. I ever there was a time that bonding was important,
this is it! The international market in particular is watching
our region closely ….and not just because of 2010 world cup and
a small ball the causes many to become emotional and that will
be tossed around South Africa for a short time.”
“Our bonding scheme is a kind of insurance policy which covers
inbound foreign tourists against a possible loss of deposits paid
to SATSA members – tourism operators, car rental companies, service
providers, accommodation providers and the like – should such
a member go into involuntary liquidation,” says Tatalias. He added
that without such a bond in place to protect a clients deposits,
clients could lose substantial amounts
of money.
Says Tatallias, So far tourism bonding schemes in existence abroad
are all government sponsored and are designed to protect the interests
of tourists who contract with outbound travel agents. The South
Africa bond covers both members of the public and any SATSA member
who places business with any other SATSA member. Payments may
have been in the form of paying a deposit, for accommodation,
car rental or for a tour with a SATSA member.
“Should a SATSA member who is a South African tourism business
operation run into financial problems, the bonding scheme allows
the client to claim back his deposit without having to prove in
a court or to the liquidator whom or what he paid, but simply
to produce the relevant documentation to SATSA.”
The SATSA bonding policy carries an indemnity of R1 500 000 per
premium cycle (per premium year or part thereof) limited to a
maximum of R300 000 per incident. The scheme is underwritten by
Lombard Insurance and certain underwriting syndicates at Lloyds
of London and is administered by SATSA.
More than ever before it is important to make use of the bonded
services of SATSA members for secure holiday bookings in South
Africa.
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