Argentina: Student Tourism

Argentina: Student Tourism				In December 2005, Monday 19th every newspaper
				mentioned the disappearance of the Cinco
Santiago Aramburu and				Zonas managers, without a trace and having
				left their offices completely empty. For
Gonzalo Casanova Ferro				students, parents, rendors, authorities and
				the very employees surprise, who feared
For ever students				reprisal, the companyÂ´s managers
				disappeared leaving over 850 children
There are several theories that explain the				stranded in San Carlos de Bariloche city and
origin of Tourism. Some of them spring from				with no returning possibilities. This added
an anthropological fate, others speak about a				to the next passengers about to travel; and
psychic motivation and finally others try to				some other 1200 approx. Who had already begun
impose a historical reading.				to pay the installments of the travel the
				would make in 2006.
From this last trend other variants also
spring; two great lines run through the				The same day the news appeared, the National
theoretical frame of those who dare throw a				Tourism Secretary corroborated teh above
hypothesis in this sense: there are those who				mentioned situation by means of an inspection
identify the first tourists among the ancient				record, and declared the forfeiture of the
pilgrims that sought to contemplate some of				companyÂ´s license for lacking operating
the world's seven wonders, those who identify				structure (N 156/03 Resolution), trying to
the medieval peoples that sought to visit				direct the situation.
sacred places and, finally, those who state
that actually, presently, we should consider				What later happened was continuous and public
that the first tourists were students.				parents and students complaints, especially
Strictly speaking: "graduates". They meant,				in CÃ³rdoba province since most of the
thus, XVII century upper-middle-class London				aggrieved students were from there.
people who, once they finished their studies,
they began an initiate trip round the most				In less than a week later, the students who
important capitals of Europe, an antecedent				were in Bariloche city and those who were
of the "Grand Tour" . It was not about a				about to travel were able to see their dream
leisure or fun related activity, but about a				come true. Some tourism companies, the
means to complete their formation; it				National Tourism Secretary and the Tourism
consisted of knowing the people and the				Agency from CÃ³rdoba (province entity in
markets their would later deal with				charge of the tourism sector) combined,
professionally in a better way.				interceded for the fulfilment of the Cinco
				Zonas contracts after a negotiation with the
No matter how, here and throughout the world,				rendors25.
Tourism, as we know it nowadays, emerged in
the XX century.				25 ClarÃn Newspaper, Thursday 22nd,
				December 2005, Marta PlatÃa.
At the beginning, tourist travels might have
been a product of some wealthy man's				So far, there was still one problem to solve;
eccentricity. An elite's privilege connected				that of those who had started to pay in 2005
with the need for adventure, free time or a				planning to travel the first half of 2006.
mere means to alleviate the upper classes				Once more, some decided to close negotiations
boredom. But from the 30s on, it did not take				giving up price and/or services, and others
long to get into a period which spread it as				prolongued conversations trying to improve
a working class right, right assisted by the				their situation.
so-called Well Being State y focused on the
"sun and beach" products (season and rigid				The cycle repeats itself. On one hand, the
packages, aimed ill-informed people). And so				administrative complaints before the
it finally became the NTE (New Tourism Era)				comptroller institution made by several
which combines and surpasses both stages				damaged contingents, as well as by the
(great market segmentation, specialized				verycompanyÂ´s emloyees.
products, tourist protection systems,
sustainability conscience, etc).				On the other hand, the judicial issue related
				with criminal reports (still being processed)
The paradox implies that in recovering				initiated in different parts of the country
Tourism antecedents, the ancient European				against the companyÂ´s holders in
habit will revive as a juridical and market				connection with the supposed swindle.
category, in such southern a scenery, that we
could even say that in more fair conditions,				And, finally, the actual solution, i.e.,
it would not be exempt from light and shade.				different alternatives the injured party have
				and will have, according to context, time and
We propose ourselves, then, to analyze what				will of those they negotiate with.
is meant by Student Tourism in Argentina, who
its actors are and what its role is, going				The Zaiga Travel case
through the most difficult cases and their
possible solutions.				Tours and Travel LLC, had been created as a
				family company oprating under the trade name
Unlike our country, in the rest of the world				of Zaiga Travel. They dealt with student
expressions as "student tourism" or "student				tourism for many years, apparently with no
travel" may represent:				problems at all, in fact in 2005 inspections
				ahd been made and the agency was in order and
A) Any student trip lead by teachers and with				in agreement with the regulations in force.
an educational character ;				One day before the official announcement the
				company informed its hirers they would not
B) Certain organizations services for a				give any more payments, since they were not
university segment (also including teachers)				able to meet pending compromises due to
ready to travel anywhere, normally abroad and				financial problems. The affliction extended
generally for study reasons ;				over the 6000 involved who gradually became
				aware.
C) the one made by student groups, organized
by specialized people, when they decide to				Most of them saught a response from the
visit historical places, museums, parks,				appropriate authority: The National Tourism
monuments, important natural environments,				Secretary and others appealed to the
beaches, mountains, prairies, etc. and which				Government itself.
allows them to closely know places and
activities which they have barely known				After meetings between the National Tourism
through lecture explanations ;				Secretary and many local companies, it was
				announced tha Fleachabus Travel company and
D) the one organized by learned youngsters,				Tourism together with the collaboration of
who obtain information via internet, who are				their service rendors would provide with new
motivated for life in a globalized society				travel programmes especially designed to take
and combine their travel experiences with				care of the well known situation. Out of 256
adventure, study, work and rest. They travel				damaged contingents, the majority accepted
to become part of a traveling international				the new offer.
community ;
				As for administrative proceedings, they were
What is meant by "Student Tourism" in				initiated the 15th of March 2006, and it was
Argentina?				dictated by Disposition 453/06 from the
				National Tourism Secretary, the agencyÂ´s
According to the hasty dictation of the				stay of operation and the opening of
25.599 law, it shall be understood as such				administrative records, for alleged
the one arising from art. 2Âº holding that:				infringement of Art. 8a of the Travel Agents
				Law (18.829) which would end up with the
"To the effects of the current law, student				licenceÂ´s cancellation. The same day
tourism shall be understood as:a) Study				criminal records were opened at the Crime and
travels: Formative activities integrated to				Reformatory Bureau, and the Court 19Â° was
the schools curricular proposal, which are				chosen, case 13.888, with District Attorney
organized and supervised by authorities and				N30.
teachers from the respective institution;b)
Graduate travels: Tourist activities aimed at				Synthesis
celebrating the finalization of an
educational level or career, which are				From the above mentined experiences some
organized with the parents or student tutors				criteria can be drawn:
participation, aimed at recreation and
amusement, independent from the schools				A) From teh legal point of view: Labour cases
curricular proposal and without detriment of				will be upheld as long as, as happened with
the fulfillment of the minimum days				the Rio case, there exist property. If, on
attendance according to the school calendar				the contrary, an emptying takes place as with
of each educative jurisdiction."				the Cinco Zonas case, it will be upheld, but
				there will be no payment. Trade cases will
Needless to say the previous definition has				surely end up in bankrupcy, as well as the
been subject to severe criticism. On the one				administrative case will end up fined and
hand, it seems excessive to include without				closed. Criminal cases, on the other hand,
any warning study travels, since a more				will be dalayed in time since it is generally
strict interpretation of the norm would imply				very difficult to prove suitability for the
school trip should be mediated by a travel				criminal type.
agent no matter its length or distance. One
the other hand, when analyzing the second				B) From the damaged point of view: Whatever
clause, it says that the formula "parents				their situation is, they will be subject to
participation or pupils tutors" turns out too				affliction or uncertainty proper to those who
open, giving rise to confusions or				endure malicious maneuvre. In fact, those who
ambiguities. Anyhow, it is not our intention				had not travelledend up hiring another
to solve it here, but only to set forth that				company, giving up either part of the
maybe this norm in particular requires				previous payment, comfort, days, excursions
certain reconsidering.				or a combination of the above mentioned.

Anyway, the "Student Tourism" category is a				C) From the market and political point of
legislative creation fit for Argentina, that				view: Delay between the damaging fact and the
in other countries can be mistaken either for				different solutions for each one of the
"youth tourism", destined to cover vacations				claimants weakens the whole system. Then,
for that segment, or for "interchange student				crossed accusations between institutions,
tourism", that is to say pupils of different				companies and holders are the ideal scenery
nationalities who shift from one place to				for things to remain unchanged.
another to get the experience of a foreign
langauge or different educational system.				In search of a solution
What we call "student tourism", on the other
hand,involves a very unusual phenomenon				"Truth is never bad...but unavoidable", as
which, although it includes study as well as				the song goes. Put in other words Can
graduate travels, is very associated wiht the				everything be foreseen? Yes, it can; what we
latter category, with winter season and				can not do is avoid it. That is to say, we
focused on one destination: Bariloche.				can have the best road legislation, we can
				have a good signalling, good traffic lights
For decades the destiny of "Student Tourism"				and a good policeman at every corner, and
has been San Carlos de Bariloche in Rio Negro				that will not prevent someone from speeding
province. Nowadays nobody doubts its position				infringing all these precautions. Can we
as regards to student travels; mainly for the				prevent someone from emptying a company?
second cycle (polimodal or secondary) of our				someone from running away to avoid
educational system. This, without detriment				resposibility? someone from maladministrating
of,in the future for market economy or				a company leading it to bankrupcy? Definitely
currency reasons,losing its leadership if new				not, nut we can avoid its consequencies,
destinations appear for this present segment.				without forgetting that obviously we are in
				front of a trading between private parties
The offers the same attractions as any other				and that, further beyond shared setbacks we
urban centre: good lodging, gastronimy				are still dealing with a luxury service. Thsi
options varieties, dancing places, etc; but				does not prevent us from understanding that
combined with a privileged natural scenery.				as Dr Tale26 points out your graduate travel
Founded in 1902 and with a design imporved by				should not be considered just as any another
architect Alejandro Bustillo in the 30s, the				travel, but as a unique episode and as such,
city grew surrounded by the beauty of the				when thwarted it deserves courts27 tutelage.
Nahuel Huapi National Park, its mountain
range geography covered with natural lakes				So far, it seems that when the student
and woods which make it the ideal place for				tourism agency breaches contract (whatever
skiing, climbing, trecking, and like				reasons), the logical thing to do would be to
activities.				seek aid from the Warranty Fund; as the
				Art.13 from 18.829 Law comtemplates:
At the beginings of the 60s the city
abandoned its Bavarian alpine styleimprinted				"Infringement to Article 6Â° from the law
on it by the German architect Hacker, and its				in force shall be sanctioned with oparation
vertical development began7. The 70s and the				stay until the warranty fundÂ´s
80s were in charge of placing this sports				normalization. The sanction will become
variety at the middle class reach aided by				license cancellation and closing of premises
big carriers who saw there the chance for				if the fund does not regularize in a six (6)
graduate travels. Its leadership reamins				month term. In that case, the fundÂ´s
since then, in spite of intervals due to				balance shall be applied to indemnify for
rising economy periods where we had to				breach of contracts." (the bold lettered
compete with international destinations				sentence is ours)
(especially Brazil) or in crisis periods,
like the present times, where second options				26Tale Camilo, Travel Contract Vol II.
such as CordobaÂ´s Villa Carlos Paz are				Hammurabi Editorial- Buenos Aires 2005
considered. In spite of it, Bariloche is now
overflowed during winter (june/july) which				27Civil and Trade Chamber. La Plata, Room II,
coincides with school vacations in most of				11/3/93, "Lucero, Carlos y otro c. Quilmas
the country.				Tur S.A.", JA, 1994-I-232.

Claimants and their roles				But for this there are two obstacles
				difficult to solve without an act amendment;
There exist five claimants who take part in				the first one is the amount and its
the hire of "student travel" development				estimation, the second one its set up manner.
services:				Criteria for determining the warranty amount
				are established by kind of agency and
Schools				location, not byoperation volume, this gives
				smaller figures, hard to update and when it
Students (and their legal representatives				comes to indemnify for a serious infringement
-parents or tutors-)				they would not even pay for the process. As
				for the manner, we have already mentioned the
Service rendors/renderers				fund is normally composed by a bail insurance
				which determines, as Dr Benitez28 points out,
Agencies allowed to operate with "Student				that before the incapability of determining
tourism"				who shall travel, the Tourism Secretary
				becomes a beneficiary of it and therefore
National Tourism Secretary				makes room for the interpretation that it can
				only be used for repaying fines, hindering
Local Tourism authorities				the essence of the rule.

Schools in general deal with the graduate				Beyond general complaints aimed at reducing
travel issue as with a problem which requires				presale terms, the parleyer debate in search
a special treatment.				of a definitive solution immediately
				appeared. Congress members took command and
On one extreme and in order not to share				several projects drew the attention of the
responsibilities,promoters not only are not				respective Tourism Boards:a) The project
allowed enter the facilities, but also are				impelled by the private sector29 and
parents and pupuils informed that service				congressman
rendering is their own responsibility and
risk; even more,teacher participation is				Heredia (PJ - FPV CÃ³rdoba) proposed to
discouraged and if travel coincides with				modify law 25.599, allowing the AAAVandT30 to
working days (outside winter vacations				be the one to categorize student travel
period) absenteeism is registered.				agencies and administer an ad hoc Warranty
				Fund.b) The UCR recovered a porject from the
Moderate positions try not to intervene in				previous year alreadyintroduced by
negotiation, but to supervise the the				congresswoman Beatriz Leyba de MartÃ
trajectory of the agency/ies who place
offers. They suggest not only teacher				(CÃ³rdoba)31 and introduced another one by
participation but also parents or				Silvana Giudici32
supervisors, as well as assistance to the
students group who are travelling.				(Capital) where a "Fund of Contingency for
				Student Travels" iscreated, integrated by a
Finally, and as an exception, there are				3% Agencies would deposit over theservices
institutions who contradicting art.1 from				and programs billed value.c) The Tinnirello
18.829 Travel Agents Law and art.18 from 118				Carlos A. project and others by the Social
05 Resolution, organize their own graduate
travels, generally by underhand methods or by				Meeting Net of Capital Federal33 proposed a
some intermediary teacher who "covers" forthe				savings bank system
institutional infringement. 118/05 Reslution
only contemplates an exception in its art.17				Unattachable which would be opened by Banco
and it is that the offered travel must take				NaciÃ³n for everycontingent at the same
only one day and it does not include to spend				time.d) De Bernardi Eduardo, congressman for
the night.				Chubut (PJ - FPV)34proposed that contracts
				for student tourism be approved bythe
Since payment modalities of these sort of				Customer Protection Secretary, to which
travels is made by installments throughout a				therealso should be submitted consuming
year, students start probing into agencies to				realted issues aroused byinfringements.e) The
cantract during this period. In this sense,				ARI on the other hand, with ariel Gorbacz as
the experience of the same yearÂ´s				intermediaryproposed the setting-up of a
graduates preceding them is usually important				Trustee35 established in a bank firmchosen by
but not determinig. Some groups say yes and				the students themselves.
others reach a consensus with their parents.
In Argentina the age of consent is 21 and				But, actually, no matter the solution
only exceptionally some acts are allowed at				proposed it would not be feasible unless the
18. The average age at which pupils consider				necessary faculties were delivered to the
travelling is normally under this age, and				application authority (as much as for
therefore their parents or legal tutors will				demanding warranties as for taxing beyond the
be the ones who will end up signing contracts				current year).
with the agencies. Moreover, in hte case of
some educational travels the age allowed is				28 Kemelmajer de Carlucci, Aida and
under 14.				BenÃtez, Diego. Tourism, Law and Regional
				Economics. Rubinzal - Culzoni Editors, Buenos
Service rendors are the direct service				Aires 2003.
suppliers, hotel managers,
carriers,gastronomists, skii instructors,				29 File NÂº 3007-D-2006 / Parlamentary
trainers, fotographers, etc. The agency keeps				Procedure 64
a commercial relationship with them, almost
permanent which allows it to finance their				30 AsociaciÃ³n Argentina de Agencias de
costs in a better way ot of a volume and				Viajes y Turismo
continuity offer. Where the "optional" calls
(everything that is sold and to the				31 File NÂº 6874-D-2005 / Parlamentary
studentÂ´s adress) makes up for an				Procedure
important part of the business. Needless to
say that in many cases the economic situation				32 File NÂº339-D-2006 / Parlamentary
(particularly currency types) can determining				Procedure 22
for rendors to neglect local market, creating
distortions or weakness in the sector of the				33 File NÂº 2874-D-2006 / Parlamentary
Argentine agencies who work in the				Procedure 61
studentÂ´s segment.
				34 File NÂº 1484-D-2006 / Parlamentary
For the travel agency to be able to operate				Procedure 25
in the Argentinean territory it must obtain a
temporary or definitive license which needs				35 File NÂº 0862-D-2006 / Parlamentary
to meet certain requirements:				Procedure 16

A) To possess functional structure, i.e.				The party in power clearly felt this need and
phisical facilities and at least one				acted in consequence. The legislative debate
registered competentÂ´s contract (a Tourism				at the Lower House did not turn out so
phB), who will be responsible for the				strenuous. Over 153 congressmen present 136
AgencyÂ´s technical aspects.				voted in favour of the majorityÂ´s opinion,
				only 13 for denial and 3 abstentions. Atthe
B) To have the corresponding Precarious				Upper Chamber the procedure was as speedy as
Permit and the Provisional License.				the previous one.

C) That he or the firmÂ´s holders have no				The New Law
criminal or commercial records that prevent
them from trading.				The modification project for Student Tourism
				Law 25.599 impelled by the Partido
D) To establish a Guarantee Fund generally				Justicialista36 sanctioned in December 20th
made up by a bond insurance depanding on the				2006 by Law 26.208 is only made up by 9
agencyÂ´s tipe and location.				articles which constitute the basics to
				access a defenitive solution.
E) And finally, that the holder be registered
as a Trader if it comes to a sole trader, or				The first article replaces clause g) from the
the activity be described in the corporate				Art. 5Â° Law 25.599 demanding that, in the
purpose, if it comes to a partnership.				affidavit given by those who ask for the
				corresponding certificate, they declare the
The Travel Agency who furthermore seeks to				number of services programmed, sold or booked
organize graduate travels must previously				without restricting the information to the
obtain a "National Authorization Certificate				current year as done before. Furthermore, it
for Student Tourism Agencies", which also				requires that it be specified data not
means they must grant a life, a personal				included in theoriginal text: total cost and
accidents, a civil accountability insurance,				by contingent.
and another one for complete medical care,
for each and every member of each contingent				The second article replacing article 6Â°
of students, that covers any risk from the				Law 25.599 imposes a 15 working day term on
beginning to the end of the travel. On the				those agencies who shall notify modifications
other hand, they must also annually submit an				to their affidavits, subjecting that
affidavit with the following information:a)				condition to the generic sanction of the art.
FirmÂ´s personnel - main and branch				10Â° Law 18.829.
offices- who will wait, in this
environment,on the student tourism area, with				The third article supplies for clause d) from
personal data and function specified;b)				the art. 7Â° Law 25.599 and mandates a
Name, birth date, id number and adress of the				rather confusing issue. The original text
persons who will take				said that student tourism service sale
resposibility, coordinate				contracts should hold among other
and control compromise fulfillment in the				requirements the following: "Reliable
travel destinations. They must also give the				certification of the insurance contract, for
address of each place they will carry out				each of the contracting parties, civil
their activities.c) Offered programs. A				liability, life, accident and complete
brief sinthesis of the services they will				medical care coverage, with data details of
render, giving name and address of the				the contracting insurance companies." The
different service rendors:				impossibility to impose life insurance on
				minors and the absence of a product for
Hotels, carriers and the ones in charge of				complete medical care coverage made it
the excursions, giving clear quantity of the				impossible to meet such demands. So the
palces contracted with each of them.				present text reads: " reliable certification
Advertising brochures and material must be				of contracts for each one of the tourists
attached;d) A list of the persons in charge				making up the student contingent of personal
of coordinating destinations and the group				accident insurance which covers for death and
coordinator who must be over 21, giving name,				total or partial, permanent or transient
id number and address, schooling, years of				disability risk, for medical and
service in the company;e) A list of the				farmaceutical asistance." Explaining that
promoters of each company, name, they must be				regulations could require other portection
over 18, id number and address, schooling,				instruments that in all cases they should
years of service in the company;f) Persons				cover for phisical risks from the biginning
authorized to sign contracts.g) The Agency				to the end of the travel.
holder must carry an authenticated copy of
the contract model they will use for the				The fourth article is the one cutting the
services sale;h) Insurance policies for civil				Gordian knot by incorporating clause e) to
liability, personal accidents and medical				the article 7Â°, it is worth saying,
assistance;i) Quantity of services programmed				compelling the agency to add to their
for the current year -sold or booked-,				contract the accreditation of having
indicating anticipated date of departure of				established enough warranties which should
the contingents, educational institution they				correspond with the final amounts of the
belong to, destination, hotel they will be				envolved services. Thus making a declarative
lodged in, transports they will use and all				enumeration of the kind of warranties the
the services included with their certificate				application authority could ask, which are:
of qualification delivered by the CNRT. They				a) fiduciary funds, b) patrimonial, c)
must clearly specify quality, type and				banking, d) financial, e) deposits, f) bail
category of the different services. Likewise,				insurance.
unless it is a question of the year
activities begin, they must attach a report				36File NÂº 53/06
with statistical detail of the previous
yearÂ´s activities.				Likewise, the 5Â° art. Brings another
				innovation, the sustitution of art. 10Â°,
8 Although Resolutions speak of categories in				which although it supports the authority of
terms of organizers or traders, this is not				the National Tourism Secretary, it goes in
strictly like that since categories must be				reversewith the established in Decrete 1013
interpreted together with the Decrete 2182/72				02, previously remarked in clause b) of
which regulates Law 18.829, which only takes				Article 10Â° and Articles 11Â° and 12Â°
into consideration three kinds of agencies:				of the original text ( particularly, the
Tourism and Travel Company (TTC), Tourism				first two granting competence to Customer
Agency (TA) and Tickets Agency (TA).				Protection to solve consuming matters under
				the terms of Law 24.240 and complementary
9 Regulations do not take into acount certain				rules). Decrete based on the principle by
limitations belonging to insurance				which special rules prevail over general
legislation related to minors and trade				rules.
operation conditions.
				Finally, Art. 6Â° sustitutes for Art.
As previously mentioned, trade method is done				16Â° and transforms the obligation of
ahead of time, fractionally and documented in				cancelling the "National Authorization
deed, generally standardized whose model can				Certificate for Student Tourism Agencies" for
be downloaded from Internet10.				those agencies breaking the LawÂ´s
				prescriptions; certificate given by a faculty
In the terms of the National Tourism Law11				that regards how delicate the closing process
and the National Student Tourism Law12, the				of an agency can be, and the need for, even
National Tourism Secretary is the Application				in a closing process, the fullfilment of the
Authority. It is responsible for establishing				assumed compromises. It applies the maximum
national policies of the activity in the				penalization envisaged in Art. 10Â° of Law
frame of the Strategical Federal Plan for				18.829 and empowers to aggraviate up to the
Sustainable Tourism. It is before this				quintuple recurrence cases, in agreement to
institution that travel agents require their				what was envisaged in art. 15Â° of the
license, it it the body which deals with				cited regulation.
files and acts as controller, able to impose
sanctions for infringement and/or				The rest of the articled is rule-related.
non-observance of the norms which govern the
activity, to the extent of being able to				To sum up: Resolution 237/07
immediately cancel certifications delivered
to transgressors.				We still had the challenge to find a solution
				insuring student travels, without imposing
Local Tourism Authorities often have more				standards which in turn produce the opposite
power to behave as the comptroller of the				effect. A solution which prevented minors
touristic destination and in deed in some				from running the risk of the operation and
provinces they have the Ministry rank. That				this latter from returning to the company
is why in many jurisdictions inspectors are				environment.
htemselves the local authority and control
not only agencies but also hotel, gastronomy,				This soluiton was provided by Resolution 237
dancing premises and other rendors. In the				07 dictated by the National Tourism Secretary
proper case of the San Carlos de Bariloche				who finally regulated Student Tourism. This
Townhall three norms govern:				implied to restructure A) Requirements
				demanded from those agencies who wanted to
â€¢ 1396-CM-04 Byelaw which organizes				operate with Student Tourism. B) Contract
terms and range of a "Student Tourism				terms. Apart from C) To constitute a private
Services Certificate" it delivers to the				Trust administered by Nation Trust37 D) To
borrower companies.				modify the Insurance arrangement E) To
				establish a new arrangement for Coordinators
â€¢ 39-I-06 Byelaw which imposes an				and F) To fix coming obligations
affidavit to suppliers and customers.
				A) The main modifications introduced in the
â€¢ 1026-I-06 Byelaw which calls for a				general conditions to provide a certificate
record of entry in the AFIP.				for the agencies who wanted to operate with
				student tourism were:
So far everything seems to be considered and
controlled; nevetheless, market situation can				â€¢ To remove term dates, being able to
sometimes give unpleasant surprises:				request for it whenever necessary.
companies that close down for uncertain
reasons and leave hundreds of tourists				â€¢ To require affidavits every year to
stranded or about to travel.				update the information in the student tourism
				file.
Strictly and comparatively speaking, agencies
that collapse due to fraudulence or wrong				â€¢ To submit a contract certificate of
administration are no so many. Out of three				each contracted service of each rendor and in
thousand eight hundred entered agencies, only				the traders case the compromise shall be
two hundred fifty eight13 are qualified to				submitted by the organizer.
trade "student tourism" 14, and out of these
an average of two per year in the lat five				â€¢ Every two months a currency
years record sudden falls for the above				certificate of the tradings must be
mentioned reasons; nevertheless,the sense of				submitted.
impunity and affliction such situations
provoke n society, together with the mass				â€¢ Traders must submit a copy of
media multiplying effect, generate some sort				adherance to the Trust.
of public indignation, completely
understandable.				â€¢ Traders must submit a copy of the
				organizerÂ´s warrant so they can act on his
We shall describe, then, four cases (probably				her behalf in the contracts they enter into.
the most outstanding) where civil
administration seems to have learnt how to				â€¢ They should attach a model of the
solve the different crisis provoked by				book of coupons they will use.
agencies who unexpectedly stopped operating .
Thus, preventive measures on thecompany,				37
deference to current and to the
about-to-leave-passengers, coordination				â€¢ They should state if contracts will
withdirect rendors and local authorities,				be entered into before 60 days since the
negotiations with other agencies, etc. are				beginning of the travel and if study travels
being				will be done.

10				â€¢ Those who state entering into
				contracts with more anticipaction than the 60
11 Ley 25.997				days before the travel shall submit:

12Ley 25.599				? Pre-purchase certificate with
				classification or bail insurance policy and
13 Figures from in January 2006 provided by				or
Secretaria de Turismo de la NaciÃ³n
(Argentina).				? A letter of intent registering their
				disposal to give a bankerÂ´s reference and
14 Bulletin NÂº 196 from CÃ¡mara				or
Argentina de Turismo (CAT) 12/10/2005 cites
a report from SecretarÃa de Turismo de				? A letter of intent delivered by a
RÃo Negro stating that "the previous trade				Reciprocal Guarantee Company entitled with
leaders, as RÃo de la Plata and El				the authorization of the BANCO CENTRAL DE LA
RÃ¡pido Argentino did not survive to the				NACION ARGENTINA,registering their disposal
economy crisis and nowadays, the companies				to give this kind of reference
that bring most students (to Bariloche) are
Travel Rock and Flecha Bus, which will take				B) Contract terms imply that:
and render services to a 40% of the
students".optimized not because regulations				â€¢ Services included are: transport,
foresees them as a tool or a retaining wall				lodging, gastronomy, day excursions -except
fit for these sort of situations, but because				for active and/or adventure tourism- and
Tourism phase and continuity as a state				insurance.
policy have thus allowed. What worries us
then, is that these prodeedings have not had				â€¢ Within the 30 days after the contract
a normative correlation and therefore "the				signing consumers should send contract
solution" has been more operative than				agreements to the contingentÂ´s travel
institutional.				agent.

The RÃo de la Plata Inc. Case				â€¢ The agent shall enter the
				contractÂ´s data into the application
RÃo de la Plata Inc. had two corporations:				system with a registration password given
Transporte RÃo de la Plata Inc. And RÃo				with the certificate.
de la Plata Tourism Inc. both had a travel
agency license; nevertheless, from 1997 on				â€¢ Consumers shall have access to the
the first one was withdrawn and only the				system to check their contract.
latter was operating. RÃo de la Plata
Tourism Inc. not only had the prestige for				â€¢ The agreement shall be improved with
long being in the market, but also it had an				the PAYMENT OF INSTALMENT ZERO.
infrastructure that allowed it to cover for
transport and hotel services with their own				â€¢ INSTALLMENT ZERO shall be the 6% of
unities and lodging.				each contract, whose voucher will be given by
				the agent and each passenger will be able to
In August 2002 an incident presaged the fall				pay for at Banco de la NaciÃ³n Argentina
of one of the most important operators in				and Rapipago branches.38
student tourism. A group of parents, pupils
and teachers took possession of a RÃo de				â€¢ The Special Installment for 2006
la Plata company building inBuenos Aires in				travels will only bring the 1,5% of the
response to the notice announcing they would				unsettled contract already signed.
not be able to travel the next day due to a
bus breakage.				C) As far as the Trustee concerned:

Twenty four hours later the problem was				â€¢ It shall guarantee obligations for
solved but doubts were already there.				breach of contract

In November 2002 and precisely in two of the				â€¢ Organizers shall underwrite the
RÃo hotels (Austonia Inn and Austonia III)				contract of the administration private
the trade union workers went on strike, and				trustee
this provoked a series of breaches for the
student who were already at destination.				â€¢ The percentage on the amount of each
Reports were immediately given at the San				individual contract will be the 6% of it.
Carlos de Bariloche Townhall and the National
Tourism Secretary (since hotels running is				â€¢ The contribution whall be deposited
local competence and travel agenciesÂ´ is				in legal currency in the account under the
federal). Strikers even threatened to block				name of FONDO DE TURISMO ESTUDIANTIL
access routes for RÃo buses.				determined by the fiduciary.39

The companyÂ´s decision of a sudden change				D) The insurance system was adjusted to the
in Management and the closing of several				following parameters:
branch offices caused the initiaion of
administrative proceedings in December of the				â€¢ CIVIL LIABILITY
same year; in January 2003 it was quite
obvious the the company would not be able to				Total: ONE HUNDRED THOUSAND PESOS ($100.000)
face services, so the Tourism Secretary				minimum.
issued a precausionary measure15: operation
stay without detriment to demand the agency				Range: the whole Argentina country (including
to fulfil the set up duties, though				foreign destinations in case of dealing with
restricting it to operating in the future. By				them).
then fraud suspicions were apparent to
everyone and Criminal Courts also				Minimum risks: Civil liability. Fire,
intervened16.				thunder, explosion, electric discharge, gas
				leak. Food supply. Civil liability in third
Mass media and the questioned companyÂ´s				parties vehicle transportation.
wealth made facts transcend to the national
politics atmosphere, entering not only in the				38
agenda of several legislators but also in the
PresidentÂ´s (Dr. Eduardo Duhalde); since				39
he was summoned by the Bariloche Townhall
Council to manage17 the resolution of the				â€¢ PERSONAL ACCIDENTS + ADDITIONAL
conflict with the RÃo de la Plata workers				COVERAGE
who had the whole city in their power.
				Total: FIFTY THOUSAND PESOS ($50.000)
Passengers who had not travelled yet were				minimum.
assisted by other agencies which in some
cases accepted part of previous payments; and				Additional Coverage: FIVE THOUSAND PESOS
in other cases had negotiate either for stay				($5.000) Medical and Pharmaceutical Aid
days or for service quantity or both.				policy.

15 Order 79/03.				Range: life and permanent or temporary, total
				or partial disability coverage for each
16 National Criminal Court NÂº 31 Secretary				tourist consumer.
NÂº 119.
				â€¢ TRAVELERSÂ´ASSISTANCE
17 Resolution NÂº 004-PCM-2003.
				Total: FIVE THOUSAND PESOS ($5.000).
In November 2003 hotel auctions were
initiated directed by the Work Chamber of Rio				Range: emergency, accrediting register and
Negro18, but it was not until September 19th				authorization before the Health Services
2005 that bankrupcy was petitioned19.				Superintendency.

The LAPA Estudiantil Inc. Case - Air				E) The groupÂ´s coordinators shall meet the
Generation				following contitions:

LAPA was a single company but made up of two				â€¢ Older than 21 years old with
different coporations, LAPA Inc. and LAPA				intermediate level or complete secondary
Estudiantil Inc.				studies.

At the beginning of 2003 roumors about the				â€¢ Criminal record and second offence
financies of the airlines were quite				certificate delivered by the NATIONAL
alarming; labor protests were rapidly				MINISTRY OF JUSTICE AND HUMAN RIGHTS
increasing. According to some board members
reasons were to be found in the price of				â€¢ Good conduct certificate delivered by
aerial fuel or, beeter said, in the taxes				the coordinatorÂ´s domicile police.
levied on it, taxes which left this and other
airlines very far from the profitabiliy line				F) Finally, travel obligations shall be:
(already hard in itself to reach for any
aeronautical enterprise).				â€¢ To have a coordinator every 35
				consumers or fraction.
The public bodies answers for this situation
were dissimilar. The Transport Secretary,				?A complete list of the contingent delivered
shich was perhaps the suitable body for				by the APPLICATION SYSTEM OF STUDENT TOURISM
proposing some alternative remained quiet;
while the Tourim Secretary on the contrary,				â€¢ Copy of the underwritten contract
chose to deferthe renewal of the allowance				with each contingent
for operating in student tourism, ( a
preventive method for these cases).				â€¢ Personal accidents coverage
				certificate, medical and pharmaceutical
In May the papers dramatically announced				assistance and travel assistance record
"COMPANY CLOSED AND COMPANY DIRECTORS
DISAPPEARED WITH NO EXPLANATIONS - LAPA could				â€¢ Medical records filled in by each
leave 1200 children without their graduate				touristÂ´s family doctor
travel" 20. None of these were exactly like
that, neither did the directors disappeared,				As we can see, the STUDENT TOURISM FUNDÂ´s
nor were the graduates left without their				mission is to refund the consumersÂ´
travel, in fact in October that same year				representatives the difference between the
(paying a $85 difference and with				payments to the travel agents and services
arrangements done by the Tourism Secretary)				rendered by another trustee, to which the
the last contingent travelled21; nevertheless				rendor would have aknowledged the payments
before getting these results, comings and				done by the damaged travel agent. But for
goings oscilated between the tragical and the				this to be possible, it was necessary to set
grotesque.				reasons clear:

Parents protests before the Tourism Scretary				1. TravelÂ´s cancellation for causes not
seat, the Holders and Consumers Board of the				related with consumers, wihthout force
legislature of Buenos Aires, negotiating and				majeure or emergency
demanding a solution from the National
Executive Power, offers by Aeroandina (main				2. Travel agentÂ´s manifestation of breach
companyÂ´s shareholder) to reinvest and				of duties
renew flights, if and only if, the government
blocked fuel prices at (U$) $85 per lt.,				3. Travel agentÂ´s default on payment of
allowing them to rise the rate scale to a 20				duties assumed with service rendors or the
%22, preventive stay of their license23 for a				cancellation of the booking of the services
long sequence of irregularities committed by				hired
the company, journalists who hopelessly
mistook bankrupcy proceedings for				4. Facts or omissions provoking uncertainty
insolvency24, the uncertainty of those who				of the travel or presumption of breach
paid a part and feared the syndic would claim
the rest, and the opening of an eternal				5. Should any of the previous items happen,
criminal record.				and the SECTUR for onerous and urgency
				reasons thus determines in virtue of the
18 Aguilar Nair Marco and others with				powers granted by art. 37 of Law NÂ° 25.997
Transportes Automotores RÃo S.A. and				and other regulations in force.
another one without records.
				REGULATORY EVOLUTION OF STUDENT TOURISM
19 National Trade Court NÂº 25 Secretary
50.				Rule Date Issue

20 ClarÃn Newspaper, 24/5/2003, Constanza				Res. 135 04/24/1987 Student Tourism
DurÃ¡n.				information to the Application Authority

21 ClarÃn Newspaper 2/10/2003 Otra empresa				Res. 159
se hizo cargo de 800 chicos
				Repealed by Res. 187 and ratified by Res. 118
The graduates who were not taken by LAPA				04/12/89 Requirements extension
travel.
				Law 25.599 05/23/2002 National Student
22 Tour Messenger Newspaper Feliz domingo				Tourism Law
para todos 9 June 2003
				Decree 1013 06/13/2002 Observaciones a la ley
23 Order 487/03 from Secretaria de Turismo de				nacional de Turismo Estudiantil
la NaciÃ³n
				Res. 175
24 It was not until March 8th 2004 that the
National Trade Court NÂº 14 Secretary 28				Repealed by Res. 187 and ratified by Res. 118
dictated the company`s bankrupcy.				01/29/2003 Devicing of the Certificate and
				instruction set
All this involved an enormous waste of
efforts and dispositions and replies which				Act 35
turned out well due to a civic complaint and
the good will of some officers.				Modernization and Competitivity Management -
				Repealed by Res. 187 and ratified by Res. 118
The 5 Five Zones Case				02/24/2003 Devicing of the model of
				Certificate
The same as the previous one, Cinco Zonas SRL
(Five Zones limited liability company) was a				Res. 187 Repealed by 118 03/09/04 New
company specialized in the organization of				requirements for the Certificate
travels for technical level graduates.
				Res. 118
It operated normally, and had no excessive
criminal records that would leading us to				02/08/2005 Certificate delivery system
foresee what later happened. Moreover, the
paradox is that the companyÂ´s managers had				Res. 987 08/24/2005 Amendment to Res. 118
brought six reports against different				Updated fees for the submision of application
agencies seeking to make them meet the				forms.
current touristic normative.
				Res. 274 03/22/2006 Amendment to Res. 118
It owned 7 branch offices around the country,				States that requested certificates shall be
which implies a more or less solid structure				delivered from March 2nd of each year or
so as to yearly mobilize, and indeed they				following working day.
did, a great number of students. And
according to their rendors, it did not owe				Res. 451 05/12/2006 Amendment to Res. 118
big money amounts.				Demands the submision of Affidavits for
				sesrvices bound for the next year and difered
So, when least expected, there came the				application forms for 180 days.
unexpected , in a weekend the main office
located in Ciudad AutÃ³noma de Bs. As. and				Law 26.208 12/20/2006 Amendment to Law
its 7 branch offices alloted in the cities:				25.599
Gran Bs. As., CÃ³rdoba, Mendoa and Salta
had been completely emptied without warning.				Res.

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Argentina: Student Tourism