Local travel agencies are complaining against the rising number of illegal Korean-owned tour operators in the country.

Legally registered travel agencies and tour operators lost at least P30 million in potential revenues in 2008, amid the continued operations of the illegal Korean establishments, said John Paul Cabalza, vice president for inbound market of the Philippine Travel Agencies Association.

In a statement, the association said many of these Korean companies or operators were operating illegally or without necessary licenses.

Cabalza said the illegal operators charged exorbitant rates from their nationals coming to the Philippines.

He said the industry was very much concerned about the increasing number of unregistered Korean travel agencies and tour operators that ?take away businesses from duly licensed travel agencies.?

?We urge the government to take actions against the proliferation of these illegal Korean establishments that are taking away potential earnings from legal travel agencies,? Cabalza said.

Cabalza said that in Metro Manila alone, there had been multiple illegal Korean travel agencies that sprouted over the past two years.

?They do not issue official receipts and are only armed with a mayor?s permit and nothing else,? he said.

The association said the sudden rise of the Philippines as a popular destination for Koreans was the main impetus for Korean nationals to start illegal operations from hotel rooms, condominiums and even residential units.

Cabalza said the P30 million in revenue loss was based on the assumption that each of the 600,000 Korean tourists in the Philippines last year spent at least P1,000 to visit any local destination.

He said the illegal Korean firms were taking advantage of the fact that a number of their nationals were not capable of speaking English.

?Because of the language barrier and being Koreans themselves, they are able to charge exorbitant rates from their nationals who are coming to the country. Our members could have provided the same service at much lower costs,? he said. Roderick T. dela Cruz