Bonding World First for SATSA

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.