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ABTA chief defends proposed changes – 1 Mar 2007

Chief executive Mark Tanzer has dismissed concerns about proposed changes to the association and the speed at which members must decide on them.

ABTA chief executive Mark Tanzer says reports of changes to the association have been “No one has come up with an alternative vision or model. ABTA will fulfil the functions of a trade association, but be better and more efficient,” he said.

“We will have an agent with under £20 million in turnover elected to the board. Agents will also get to vote for the president on the basis of one member, one vote, and there will be the council of regions.”

An independent agent might also be among those appointed to the board, he said. “The one thing we won’t do is promote a single model of retailing.”

He added: “The process allows three weeks [for discussion]. We will be communicating broadly and conducting roadshows and conference calls.”

Tanzer said changes in the industry have blurred the distinction between agents and tour operators and made the proposals essential.

The board member from outside ABTA “could be someone from the retail side, someone with strong consumer or environmental credentials. It could be someone with fresh eyes who challenges the way ABTA and the industry thinks.”

Tanzer said the introduction of fees for directors would not increase overall costs, given the reduction in board expenses, and the name change would reflect the fact ABTA “will be made up of travel organisers of various complexions”.

He rejected claims the existing board rubber-stamped the proposals. “They were given a thorough going over,” he said.

The proposals

  • Board reduced from 18 to nine and to include president and chief executive
  • Four elected representatives – one large principal (turnover £50 million-plus), one small principal (under £50 million), one large agent (£20 million-plus), one small agent (under £20 million) 
  • President elected by members having been nominated and seconded by board 
  • Two member directors to be appointed by board 
  • One director appointed from outside ABTA 
  • Board to meet nine times a year (now six) 
  • Board to have powers to set subscription rates and categories of membership (currently voted on by members)
  • Directors to serve two-year terms – appointees serve maximum two terms, those elected may stand for re-election
  • Payment of non-executive board members, fees set by remuneration committee (currently directors receive expenses)
  • Council of Regions open to and elected by all members, with no turnover restriction (now restricted to small retailers), elected for two years 
  • President to chair Council of Regions
  • Association’s name changed to Abta Ltd

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