Dozens of travel agencies shuttered for violations, financial difficulties in 2018

AMMAN — Some 84 Jordanian travel agencies have closed since the beginning of 2018 for various reasons, stakeholder said.

The agencies were shuttered for several reasons including being unable to afford operational costs, Jordan Society of Travel Agents (JSTA) treasury secretary, Kamal Abu Diab, told The Jordan Times on Sunday.

According to Diab, 42 offices were closed for violations and 27 for failing to renew their annual licenses due to financial difficulties.

A total of 20 out of the 42 offices closed for violations were illegally registered or licensed.

Violations also included breaking conditions of contracts with clients, such as changing the classification of booked hotels or not booking return flight tickets, said the secretary.

JSTA has a committee that consists of six members who look into complaints registered by clients of travel agencies, said Diab.

The committee studies violations and gives periods to agencies to rectify, the secretary noted.

After the closures, the number of travel agencies in the Kingdom amount to 690, according to JSTA statistics. However, Diab added that 35 new agencies were opened in 2018. 

In previous remarks to The Jordan Times, JSTA President Mohammad Samih said that reservations for trip packages outside Jordan have dropped by 70 per cent, in comparison to 2017. 

He attributed the shunning of overseas trips to the economic situation of Jordanians this year. "Travel agencies are complaining about the low demand for outbound tourism," he commented. 

Travel agencies have to submit JD25,000 to JD105,000 as a bank guarantee to be opened.

The agencies are categorised as ticketing, Hajj and Umrah, as well as outgoing and inbound tour operators, according to Diab.