Australia’s travel industry needs regulation that is forward thinking and general, according to a new consultation draft that highlights future scenarios for the tourism sector.

The transition plan published by the Consumer Affairs Ministers was compiled in response to the Group’s decision to phase out the Travel Compensation Fund (TCF) after highlighting concerns of its relevance to today’s market earlier this year. 

Citing technology as the “culprit” for rapid changes in the industry, the report said the “original objectives of the National Scheme are increasingly being challenged” as more of the travel industry moves away from retail stores and into the online sphere.

“Making travel arrangements is now predominantely an online business,” the transition plan read.

“Travel service suppliers in Australia, encouraged by consumer enthusiasm, have eagerly embraced this new distribution channel, helping break down traditional relationships with consumers, who previously relied on travel agents to make informed decisions.”

Forwarding five key recommendations, the document suggests the industry repeal the travel agents legislation, increase reliance of generic consumer protection, corporations laws and oversights mechanisms, wind up of the TCF, align tourism policies and possible introduce a new voluntary industry accreditation.

Expecting the new plan to take up to three years to implement, the transition recommendations could see all agents cease to be TCF members by 2014 before its proposed closure by Christmas 2014.

Submissions for the plan are required by 1 October this year.

Click here to read the full report.