DFA exec: New passport guidelines not meant to drive travel agencies out of business


Department of Foreign Affairs (DFA) Undersecretary for Administration Rafael Seguis on Friday said the removal of the accreditation requirements for travel agencies offering passport services to the public was not meant to drive these agencies out of business.


Earlier, in a news release of the DFA, Seguis said, “We would like to make it clear that the directive we issued in May as well as the latest guidelines allowing accredited travel agencies to transact with us only until the end of the year are not intended to drive travel agencies out of business.” 

In an email to GMA News Online on Friday, Seguis clarified some points about the new guidelines.

What are accreditation requirements? 
 
Seguis: These are requirements that would allow a travel agency to offer passport assistance services to the public. Agencies have to meet the following requirements: 
  • two years operational as travel/recruitment agency;
  • member of national travel agencies associations;
  • Certificate of registration from SEC-corporation or DTI certificate for single proprietorship, and
  • Surety bond from GSIS Amounting to P200,000 
 
Which accreditation requirements were removed from the travel agencies?
 
Seguis: What we are actually doing is removing the entire accreditation process as part of the reforms we are undertaking to allow us to improve the delivery of consular services. 
 

What are the new travel agency guidelines? 
 
Seguis: These guidelines on travel agencies are part of a wide-range of measures we are undertaking to improve consular services. These measures include the transfer of passport offices to shopping malls nationwide, the adjustment of operating hours to 10 am to 8 pm Mondays to Saturdays; removal of accreditation requirements for travel agencies; and the establishment of a dedicated call center for passport applicants. 
 
When were the new guidelines implemented?
 
Seguis: The new guidelines took effect July 30. 
 
 
Why did you issue a news release about how the new guidelines were not meant to "discriminate?"
DFA: New travel agency guidelines on passport application not meant to 'discriminate'
 
Seguis: To correct the misperception of travel agencies that we are discriminating against them and trying to drive them out of business. 
 
Did some travel agencies complain about the changes?
 
Seguis: There were some concerns raised by the travel industry which we responded to following consultations with them.
 

What will be the advantage if a person seeks to avail of the passport services of a travel agency?
 
Seguis: Before the introduction of the e-passport, applicants could get their passports without having to appear in our offices.

Accredited travel agencies would do this for them but for a fee. With the e-passport, agencies enjoyed such privileges as guaranteed slots, express lanes etc. 
 

When applying for a passport through a travel agency, does the applicant have to appear in person? 
 
Seguis: With the introduction of the e-passport, all applicants are required to personally appear in any of our consular offices here in the Philippines and abroad. Before this, applicants have the option to have their applications filed on their behalf by accredited travel agencies. 

 
Why did the DFA decide to stop accrediting travel agencies?
 
Seguis: Our decision to stop accrediting travel agencies after 30 July 2012 is part of the wide range of measures we are undertaking to allow us to further improve the delivery of consular services to the public.  
 
These measures include the transfer of our consular offices to shopping malls across the country; the adjustment of operating hours from 10 a.m. to 8 p.m. from Mondays to Saturdays and half-days on Sundays; and the setting up of a dedicated call center to allow passport applicants to schedule the date and time they prefer to have their passport applications processed at any of our mall-based consular offices nationwide.
 
Our decision to stop accrediting travel agencies is also intended to correct public perception that we are discriminating against ordinary passport applicants by giving preferential treatment to applicants who have the means to avail themselves of the services being offered by accredited travel agencies.
 
What are the privileges that travel agency-assisted applicants enjoy?

Seguis: Unlike ordinary applicants who have to wait in line outside our consular offices for hours without even being sure that they could be accommodated, travel agency-assisted applicants were extended special privileges that allowed them to avoid the long queues; assured them of guaranteed slots and same-day processing; and get them processed in express lanes and counters.  
 
How may travel agencies have been accredited by the DFA?
 
Seguis: For the year 2011-2012, the DFA accredited a total of 551 travel agencies broken down as follows: 359 for Metro Manila and 192 for the regions. These agencies paid a total of P275,500 in accreditation fees to the DFA last year.
 
How much do travel agencies charge applicants for these privileges?
 
Seguis: Applicants pay accredited travel agencies anywhere from P1,000.00 to P7,000.00 to avail themselves of these privileges.
 
How much do travel agencies pay the DFA for the passports of their clients?
 
Seguis: Travel agencies pay the DFA only P1,200.00 for the expedited processing of their passport application. This is the same amount that the ordinary passport applicants, who, unfortunately, do not get to enjoy the same privileges, pay the DFA for expedited processing.
 
Is this the only amount that travel agencies pay the DFA?

Seguis: The DFA collects a token accreditation fee of P500 per travel agency per year. In 2011, the DFA was able to collect a total of P275,500.00 from the 551 accredited travel agencies nationwide.
 
How many travel agency applications were filed last year?
 
Seguis: The DFA issued a total of 2,615,203 passports last year. Of this number, 1,046,081 or 40 percent of the total were issued through accredited travel agencies.
 
How much did travel agencies make last year from passport services?
 
Seguis: Travel agencies charge clients from P1,000.00 to P7,000.00 for passport services but pay the DFA only P1,200.00 per client for expedited processing fees.
 
If each agency charged a minimum service fee of P500 per client, the 511 accredited agencies would have made at least P523 million in 2011. This is almost equivalent to the amount the DFA will save the national government in the next five years as a result of the Public-Private Partnership arrangements with the major shopping malls.
 
At P1,000 per client, they would have made P1.04 billion. This is almost equivalent to the amount the DFA will save the national government in the next 10 years as a result of its PPP arrangements with the major shopping malls.
 
Is there a reason for ordinary passport applicants to complain about this system?
 
Seguis: Ordinary passport applicants who do not have the means to avail themselves of the services of accredited travel agencies have every reason to complain since they pay the DFA the same amount that agency-assisted applicants pay for expedited processing. Unfortunately, they do not get to enjoy the same special privileges.
 
Unlike agency-assisted applicants, ordinary applicants show up in consular offices in the regions as early as midnight and stand in line for hours just to make sure that they could file their passport applications since as much as 40 percent of the capacity of a number of consular offices used to be reserved for the clients of accredited travel agencies.
 
Why do some applicants opt to go to travel agencies?
 
Seguis: A random survey conducted by the DFA show that some applicants, especially in the regions, go to travel agencies because they would not want to go to a consular office to line up to secure a schedule or file their applications. Most are under the impression that it would be faster and more convenient for them if they pay extra for the “express” or “same-day” services that travel agencies claim to offer.  
 
Are the new guidelines intended to drive travel agencies out of business?
 
Seguis: Travel agencies can actually continue to extend assistance to passport applicants willing to avail themselves of the services they offer and are willing to pay for these services. However, travel agencies will no longer enjoy the same special treatment that they used to enjoy. Their clients will now have to go through the same process as other applicants who pay the same passport fees that travel agency-assisted applicants pay.

- Andrei Medina, VVP, GMA News

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