Tightening Tourism Law for Travellers affected by companies that go bust

Travellers affected by companies that go bust – such as in a recent case – will be protected under a proposal to amend the Tourism Industry Act.

»The data will help us plan the amendments to the Act to protect consumers against fraud« DATUK DONALD LIM

The Tourism Ministry, however, first wants the Malaysian Association of Tour and Travel Agents (Matta) to submit to it a report of how the issue is dealt with in other countries.

Deputy Minister Datuk Donald Lim said Matta has been given a month to compile the data.

“The data will help us plan the amendments to the Act to protect consumers against fraud,” he told Matta officials at a meeting at the Putra World Trade Centre here on Friday.

Earlier this month, tour company Excellence Holiday Sdn Bhd went bust after two directors allegedly deserted it and caused scores of travellers to lose the money they had paid in advance for several tour packages.

Lim said 336 people had complained to Matta regarding the failed agency.

The losses suffered by the travellers totalled about RM2.4mil.

Matta president Ngiam Foon said the association has made comparative research overseas to find out how the regulations protect consumers.

“We’ve found that Australia, Britain and Hong Kong have provisions to protect consumers while Singapore does not have such regulations,” he said.

Asked how Matta would help the customers affected by the Excellence Holiday debacle, Ngiam said:

“We are talking to suppliers, hoteliers and airlines to come with a plan to help those who had been cheated.

“This is not a promise but we will do our best.”

He added that Matta would propose a fund to help the consumers.

Elaborating on the matter, he said: “Whenever consumers buy a travel package, it would include an extra cost that would go towards the fund.”

“The fund will be used to compensate consumers if any incident, such as the one that happened three weeks ago, were to occur,” added Ngiam.

Related News

• Tenku Adnan to meet Matta reps over cheating agents
• Matta seeks to protect travellers by Mandatory Insurance Coverage
• Happy Ending for Elderly Couple after losing RM20K to Excellence Travel
• Stranded by Excellence, 150 report losses to Matta
• Ministry Awaiting Report from Matta before assiting Travellers
• Matta seeks people affected by Excellence Travel Agency going bust
• Cops go Regional in Hunt for Excellence Holidays Directors
• Excellence Holiday Directors on the Run
• Excellence Holidays causing jeopardy for MATTA
• Travellers won’t get their money back
• Directors of Travel Agency may be blacklisted

Source : STAR
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