KUALA LUMPUR: Travel and tour agents want the Tourism, Arts and Culture Ministry to amend or revoke one part of the Tourism Industry Act 1992 which it deems 'problematic'.
Their complaint is the Fourth Schedule of the Tourism Industry Act 1992, issued in 2000, which touches on terms and conditions for outbound travellers, including cancellations and refunds, Malaysian Association of Tour and Travel Agents (MATTA) president Datuk Tan Kok Liang said.
"Following the Covid-19 outbreak, the Fourth Schedule has placed travel agents in a quandary.
"They are exposed to potential liability of around RM500mil from customers seeking compensation (cancellations of tour packages)," he said yesterday.
Tan said it is counterproductive for the ministry to "micromanage" holiday contracts between travel agents and consumers by imposing the same terms and conditions on services delivered by diverse tourism sectors and different countries.
"Each have their own rules and policies for cancellations, postponements, re-routing and refunds." Tan explained that many customers, wanting to cancel their bookings, only looked at the minimum administrative fee of RM30 or 2% of the tour fare, depending on whichever is higher, that is permitted under the Fourth Schedule.
He added consumers may not realise that all or substantial portions of payments had been forwarded to airlines and hotels.
"If consumers feel ifs their right to get refunds... travel agents are not in a position because the funds are with the airlines or (other tourism services), so we will speak to consumers and urge them to negotiate with the agents.
"Should it escalates to the court of law, then we will consider legal counsel for the industry (players)," he said.
Consumers are already protected by many existing laws; it's best to let travel agents operate freely. This will facilitate open competition as well, Tan said.
"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"Tourism should not be held back by outdated regulations," said Tan.
Tan said MATTA will be meeting Minister Datuk Seri Nancy Shukri to discuss the matter.
Tan added industry players are looking at a loss of at least RM100mil for the May school break as many take the holidays as an opportunity
to travel to further destinations.