The NSW Office of Fair Trading is investigating unfair and misleading practices by Sydney-based businesses involved in the Korean inbound tourist market following tourist complaints lodged on a new website.
The investigation follows a Korean-language consumer rights information campaign led by the Australian Government that educates international visitors about their consumer rights in Australia and empowers them to take action where those rights have been violated.
In addition to investigating the complaints, Fair Trading is negotiating refunds for those tourists who have paid excessive prices for so-called health products that have either been misrepresented or have provided little or no benefit.
Federal Minister for Tourism, the Hon Martin Ferguson MP, NSW Minister for Fair Trading, Linda Burney, and NSW Minister for Tourism, Matt Brown, said that the success of the Korean scheme would lead to further foreign language consumer protection initiatives over the next year.
“Last year, Australian tourism GDP grew by 7.8 per cent to now be worth AUD 38.9 billion. Close to 6 million visitors came to Australia, resulting in jobs for nearly half a million Australians – a record we expect to be bettered next year. However, this success depends on Australia maintaining a reputation as a destination that values and welcomes tourists,” Minister Ferguson said.
“Unfortunately, there are some rogue traders in the industry who have sought to prey on international visitors, particularly visitors who are not familiar with Australia or are not fluent in English. For this reason, I have launched the Tourist Consumer Protection Strategy. The Strategy takes consumer protection to the next level – giving travellers the resources they need in their own language, and backing it with action by Australian consumer protection authorities."
The Korean inbound market was the first focus of the strategy. In the past six months, twenty-six complaints have been received by the NSW Office of Fair Trading about tour operators and retail venues servicing the inbound Korean group tour market in Sydney.
Ms Burney said inner-suburban duty-free outlets that cater for group tours and specialise in selling health and therapeutic goods will be targeted by Fair Trading as part of their investigations.
"Tourism Australia has helped educate Korean travellers about their consumer rights in Australia but for those who feel they have been treated unfairly, my Department has established an online complaints facility in Korean. Complaints are then handled by the consumer protection authority in the appropriate jurisdiction," Minister Ferguson said.
"Businesses in Australia are obliged to treat all consumers fairly, whether they are Australian citizens or visitors to Australia. For this reason we are working to educate travellers so they know what their rights are, but we are also educating retailers and tour operators about their responsibilities to their customers," Mr Ferguson said.
NSW Tourism Minister Matt Brown said the experience in the Korean market shows the value of the Tourist Consumer Protection Strategy in ensuring that growth in tourism to Australia and NSW is not disrupted by rogue traders.
"For 45 per cent of travellers, Sydney is the gateway to Australia. It is vital to Australian tourism that NSW creates a positive experience for visitors. We cannot afford to let our reputation be damaged by shonky operators out to make a quick buck," Minister Brown said.
Minister Ferguson said, "I can assure visitors to Australia that all jurisdictions are working to protect their rights; I can also warn tour operators and retailers that we will enforce those rights."
Following the success of the scheme in the Korean market, the initiative will be rolled out next in the China market.
"Last year, more than 357,000 visitors came to Australia from China, an increase of 16 per cent, to be worth almost AUD 2 billion a year. China is on track to become our largest tourism market within the next decade. Now is the time to build Australia's reputation as a trustworthy, quality tourist destination, which this strategy will help do," Minister Ferguson said.
Download A Fair Go for Tourists - Compliance Information for the Tourism Industry in Australia
Media contact: Zoe Davies (Minister Ferguson's Office) 0437 733 318
Phyllis Sakinofsky (Minister Burney's Office) 02 9228 4455
Dale Paget (Minister Brown's Office) 0409 090 911