KOTA KINABALU: The Malaysian Association of Tour and Travel Agents (MATTA) is calling on the newly appointed Minister of Tourism, Arts and Culture, Datuk Seri Nancy Shukri to have the Fourth Schedule of the Tourism Industry Act 1992, issued in February 2000, to be amended or revoked entirely.
MATTA President Datuk Tan Kok Liang explains The Fourth Schedule contains a section titled “Travellers Outbound Terms and Conditions” drafted way before outbound travel had become fully developed.
He said the tourism landscape and business models have changed drastically but the Fourth Schedule is still stuck to where it was 20 years ago even through the exchange of six ministers.
“Should the situation escalate, MATTA will consider engaging legal counsel for the travel industry to pursue the matter at a higher court.
“The outdated terms and conditions are problematic instead of helping businesses and travellers, it is still being held on to despite repeated calls by industry stakeholders,” he said.
Submitted proposals and a series of meetings with MOTAC over the past six years from MATTA, BUMITRA Malaysia and MCTA (Malaysian Chinese Tourism Association) to amend the antiquated terms and conditions remains unresolved.
“It would have been better to revoke than amend the Fourth Schedule, as many things are beyond our control such as the Covid-19 which has caused panic resulting in mass cancellations.
Tan explained that consumers and suppliers are governed by the Contracts, Trade Descriptions and Consumer Protection Act while travel agents are professional advisors acting as intermediaries who create and deliver travel service packages.
“Tourism service suppliers are from a large array of diverse industries that include airlines, hotels, theme parks, cruises and other tourism services operating in different countries subject to their own local laws.
“It is counterproductive for MOTAC to micromanage holiday contracts between travel agents and customers by imposing the same terms and conditions on services delivered by diverse tourism sectors and different countries, each having their own rules and policies for cancellations, postponements, re-routings and refunds.
Following the Covid-19 outbreak, the Fourth Schedule has placed travel agents in a quandary. They are now exposed to potential liability of around RM500 million from customers seeking compensation, regardless of cancellation and refund policies of various service providers.
“As the Fourth Schedule was introduced by MOTAC, the Ministry should take the responsibility and intervene to resolve the current predicament in the industry.
“This is because many customers are only looking at the minimum administrative fee allowed in the Fourth Schedule, which is RM30 or 2% of the tour fare (whichever is higher), and ignoring the fact that all or a substantial portion of payments forwarded to airlines and hotels have been forfeited according to their cancellation policies.
“As consumers are adequately protected by many existing laws, it is best to let travel agents operate freely. This will facilitate open competition in line with the Competition Act 2010.
“Allowing travel agents to individually determine terms and conditions, products, prices and services can only lead to a healthy and vibrant travel industry, which will benefit all, especially the consumers.
“Tourism should not be held back by outdated regulations. As such, MOTAC must act decisively to ensure that the Malaysian travel and tourism industry is competitively on par with the rest of the world
“Legislation on standardisation of terms of holiday contracts between travel agents and holidaymakers must be updated to meet the challenges in the marketplace today,” Tan said.
Source: http://www.newsabahtimes.com.my/nstweb/fullstory/37458