Issue Date:  -  Thursday, 3 October 2002

Warning to travellers - Investment sharks are in Bali.

Western Australian travellers to Bali are being targeted by high-pressure sales people to buy into expensive property investments, the Department of Consumer and Employment Protection has been told.

Consumers have labelled the Bali operation Royal Resorts a royal rort and want the Department of Consumer and Employment Protection to intervene.

Royal Resorts have been accused by consumers of engaging in unconscionable conduct, engaging in deceptive practices, applying overt high pressure sales methods and offering gifts and prizes they did not intend to provide.

"The furthest thing from our minds when we go on a relaxing holiday is expecting to be confronted by insistent property salespeople. This element of surprise may be one of their tactics to obtain sales", Consumer Protection Commissioner Patrick Walker said.

Unsuspecting tourists are being contacted at their hotels and informed they have won luxury holidays. All the so-called winners have to do is agree to attend a sales presentation that is held in the Jimbaran Bay area. Taxi transport is arranged to and from the presentation.

"Consumers have reported that the sales presentation turns out to be a one-on-one high pressure sales pitch designed to have them buy into a form of time share scheme.

According to complaints lodged with both our Department and the Australian Competition and Consumer Commission, organisers of the presentation expected consumers to sign up on the spot with little or no time to consider the offer properly", Commissioner Walker said.

The prize offered turns out to have a non-refundable booking fee of more than $200.

"These operators and others like them obtain the contact details of holiday makers via surveys, questionnaires and other information gathering techniques. You can expect to find them at nightspots, in restaurants or walking the streets", the Commissioner said.

Some consumers who have agreed to participate have found themselves subjected to interrogation-like sales pitches lasting several hours away from their hotels and the familiar landmarks they have become comfortable with.

It is understood that the Indonesian authorities have also been contacted by consumers with regard to this kind of unscrupulous conduct being very harmful to tourism in Bali.

"Investing in property is a very big commitment and not one that should be undertaken without lots of forward planning and the help of a reputable financial consultant.

Stick to your intended schedule, do not fill out competitions or surveys and steer clear of fantastic sounding offers and other gimmicks. By doing this you will give yourself a head start in having a great holiday in Bali", Mr.Walker said.

Property and other investments wholly owned and operated overseas are outside of the jurisdiction of Consumer Protection and other Australian consumer law enforcement agencies. Consumers are strongly advised not to participate in any offshore scheme without thoroughly investigating the operation to ensure its validity and that all its risks and costs are disclosed and carefully considered.

"We will continue to monitor complaints of this nature and if any appear to have local connections we will investigate and prosecute where appropriate", the Commissioner said.

Contact Consumer Protection for further advice or assistance on 1300 30 40 54