Kuala Lumpur: All travel agencies, particularly Umrah operators, are now mandated to have a bank guarantee to ensure service quality and protect the welfare of pilgrims. Malaysian Association of Tour Agency (MATA) president, Datuk Seri Dr. Mohd Khalid Harun, stated that this aligns with the Ministry of Tourism, Arts and Culture’s (MOTAC) proposal for Umrah operators to possess a minimum bank guarantee of RM250,000.

According to BERNAMA News Agency, this requirement has been in place for some time, but many travel agencies had previously requested leniency in enforcement. However, due to the rising instances of consumer fraud, particularly involving Umrah and Hajj packages, it has become crucial for companies lacking the RM250,000 capital to cease operations. MATA supports the government’s mandate to ensure all travel agencies offering outbound packages secure the necessary bank guarantee.

Datuk Seri Dr. Mohd Khalid Harun further emphasized that agencies engaged in outbound travel inherently need substantial funds to address initial costs during unforeseen incidents. Highlighting his three decades of experience, he recounted a personal incident where immediate funds were required during an emergency in Cairo, underscoring the necessity for agencies to manage initial costs independently of insurance payouts.

Recently, MOTAC announced a review of the regulations mandating Umrah operators to hold a minimum bank guarantee of RM250,000. This requirement, part of the Tourism Industry Regulations under Act 482, aims to enhance licensing standards for businesses offering Umrah or pilgrimage packages. The urgency of implementing this measure was highlighted by a recent incident where 379 pilgrims were stranded after purchasing packages from a reputed Umrah operator.