IAAI’s Maiden Convention ICON 2004 Takes Off With Aplomb

ET&T Staff - Kochi

The IATA Agents Association of India’s (IAAI) maiden national conference ICON 2004 took off in Kochi at Le Meridien Convention Centre, Kochi on August 28 and 29 with the theme 'India - The Destination of 21st Century' touched upon pertinent issues of travel and tourism

Inaugurating the convention union minister of state for external affairs E Ahammed, reminded the travel agent community of the importance of maintaining ethics in the emerging scenario of liberalisation and tougher competition. Apart from maintaining ethical standards, upgrading skills, improving the core competence of the industry and inculcating professionalism would enhance the quality and standards of service in the industry. Ahammed also called upon travel agents to work together for the creation of better avenues in the travel and tourism industry. He further added that, "This industry had an unlimited economic and employment potential. In terms of revenue generation, travel and tourism is next only to oil. In terms of employment generation, travel and tourism has a higher capacity than agriculture and other allied sectors. Approximately 48 jobs are created for every Rs 10 lakh invested."

The minister also assured the industry that his ministry would permit IATA accredited members to process passport applications.

Addressing delegates from across the country, minister for parliamentary affairs and NORKA M M Hassan said that no airline or agent could function profitably by ignoring the interests of the travelling public. The national carriers, Air-India and Indian Airlines, should come to the rescue of the common man, and should be cautious against playing into the hands of vested interests.

K V Thomas, minister for excise and fisheries, inaugurated a default insurance scheme offered by United India Insurance Company for IAAI members. This new scheme would replace the present bank guarantee furnished by individual IATA agents from November 2004 with a premium of 0.8 per cent. This would be the lowest premium offered by any bank to the travel agents. The function was also presided over by Biji Eapen, IAAI national president, and George Tharakan, chairman of IAAI advisory committee, welcomed the gathering.

A resolution was also passed at the convention on the important issue of commissions. The IATA Agents Association of India (IAAI) is apprehensive of a move reportedly being made by the foreign airline to gradually do away with the very concept of commission. We would like to invite the government's attention to this clever move of nil commissions by foreign airlines, which is sure to inflict a loss on the government's income. By axing commission, the foreign airlines are depriving the Indian government of a good chunk of its revenue through taxes. On any amount of commission above Rs 2,500, one has to pay the central government at TDS of 5.25 per cent. (tax deducted at source). But the government stands to lose this tax when the commission goes below Rs 2,500. The unilateral and arbitrary decision of the foreign airlines on commission capping will have a negative impact on the country's economy. This will badly affect the income of IATA agents as well as the travelling public, which in turn will reduce the tax inflow into the government exchequer. A request was put forward to the union ministries of finance and civil aviation to intervene in this matter immediately as this would also create unemployment as travel agents would either close down or reduce their staff.