MOTAC ORDERS MANDATORY BANK GUARANTEES FROM TRAVEL AGENCIES OFFERING UMRAH PACKAGES

KUALA LUMPUR, Jan 7 (Bernama) -- The Ministry of Tourism, Arts and Culture (MOTAC) has ordered that travel agencies offering Umrah packages must secure a mandatory bank guarantee.

Minister Datuk Seri Tiong King Sing said this is a crucial measure to ensure pilgrims' funds are always protected and ensure prompt compensation in cases of fraud, negligence, or an agency's failure to fulfil its package.

"This is not a burden on honest operators, but a firm action to build a safe and trustworthy tourism ecosystem and restore public confidence," he said in a statement on his Facebook page tonight, commenting on the recent stranding of 36 Umrah pilgrims in Madinah.

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The incident was relayed to the Ministry of Tourism, Arts and Culture (MOTAC) through the Malaysian Embassy in Riyadh. All pilgrims have since arrived safely in Malaysia as of yesterday.

Tiong confirmed that MOTAC has raided the company’s premises, taken statements from its representatives and the affected pilgrims, and formally opened an investigation.

The Ministry is also finalising a recommendation to revoke the licence of the travel agency responsible, he added.

The group, which included elderly individuals and children, had each paid RM7,600 for packages that promised accommodation and return flights. When the agency failed to provide these basic services, the pilgrims were forced to rely on charitable donations to buy their tickets home.

In a broader enforcement update, Minister Datuk Seri Tiong King Sing reported that MOTAC has conducted 64 operations against non-compliant agencies since 2023, resulting in the suspension of four licences and two revocations.

"However, the recurrence of such incidents shows that we must take a sterner approach," Tiong said. 

Consequently, MOTAC is urging the public to always verify an agency's licence status before payment and to report any malpractice immediately.

This measure advances the Ministry's plan, announced last year, to make bank guarantees a compulsory condition for travel agency licences, especially for Umrah operators, under the Tourism Industry Act 1992.

-- BERNAMA