The Tourism Administration yesterday suspended Mega International Travel Service’s operations for three months, after an investigation concluded that the firm owes more than NT$10 million (US$318,837) in outstanding debts.
The agency on Tuesday and Thursday sent officers to investigate the company, which operates the “We Love Tour” brand, it said.
They found that Mega owes more than NT$10 million, showing a “clear issue” with its finances, it said, adding that its inability to uphold its contractual obligations harms consumers.
Photo: Fang Pin-chao, Taipei Times
The company has therefore been ordered under articles 36 and 38 of the Consumer Protection Act (消費者保護法) to immediately cease operations for three months, it said.
Regarding potential contraventions of the Regulations Governing Travel Agencies (旅行業管理規則), the agency said that evidence is still being collected from the tours under dispute, although it hopes to soon issue penalties under the Act for the Development of Tourism (發展觀光條例).
People who have booked Mega tours over the coming three months can request a refund plus compensation, or rebook the tour with another agency, as stipulated in the standard contract, the agency said.
Nearly 430 people would be affected, Travel and Training Division Director Tang Wen-chi (湯文琦) told reporters.
A tour departed as scheduled for Vietnam’s Phu Quoc Island yesterday, as Mega had paid for the flights and lodging, Tang said.
However, all 16 participants agreed to travel on their own once there, since Mega had not paid for local guides, she said.
Mega over the next three months must submit a plan to the Tourism Administration for how to improve its situation, she said, adding that the suspension would be extended if the plan is rejected.
The firm has been facing an investigation after nearly 800 tourists were stranded on Phu Quoc Island earlier this week due to its outstanding debts with an airline and local tour companies.
The issue came to light when Vietnam WInnER International Travel Co, which was responsible for 292 of the travelers, on Saturday last week requested an additional US$720 per person for the tour to continue.
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