Over 500 tourism operators under scrutiny, dozens offering umrah packages

KUALA LUMPUR: More than 500 companies and individuals suspected of operating tourism businesses without valid licences are being monitored by the Tourism, Arts and Culture Ministry, with dozens offering umrah packages.

A check on the ministry's website found that dozens of entities on its list of those under investigation for violating the Tourism Industry Act 1992 (Act 482), as at Oct 15, were offering umrah packages, while others were promoting various domestic and international travel services, including trips to Europe.

The offences identified include violations of Section 21, involving the provision of tour guide services, and Subsection 5(2), which prohibits individuals or companies from operating tourism businesses without a valid licence.

Other violations involve Regulation 6(i), (ii) and (iii), which requires licensed operators to refund customers immediately, in accordance with agreed terms, in the event of changes to or cancellations of tourism contracts, such as flight schedule cancellations.

Through its watchlist, the ministry aims to alert the public while publicly identifying individuals and companies under investigation. Some are issued initial warnings, with enforcement action taken against those who continue to flout the law.

In a response to Berita Harian, the ministry said that up to October this year, two licensed companies had their licences suspended, while three had their licences revoked.

It said 12 entities had also been issued compounds for conducting tourism activities without valid licences.

"The ministry lists unlicensed operators on the watchlist on its portal. Intelligence, enforcement and advocacy efforts are also carried out continuously to ensure action is taken against unlicensed parties and to warn the public against dealing with them.

"At the same time, it continues to collaborate and engage with licensed industry players to ensure they comply with the legislation, standards and quality desired by Motac and Act 482".

On enforcement efforts to curb unlicensed tourism services, the ministry said its Tourism Licensing and Enforcement Division conducted operations, intelligence gathering and surveillance at all entry points into the country, including Kuala Lumpur International Airport (KLIA) Terminals 1 and 2.

The operations are conducted aggressively, with a focus on popular tourist destinations nationwide.

It said intelligence gathering and inspections at both KLIA terminals had uncovered various offences, including entities offering tour and umrah packages without valid ministry licences.

Other offences included individuals providing tour guide services without valid licences, as well as private, commercial and e-hailing vehicles transporting tourists without tourist vehicle licences issued by the Land Public Transport Agency (Apad).

"The frequency of the ministry's enforcement operations at airports and other entry points is varied and not fixed to prevent offenders from detecting operational patterns.

"The ministry also works with KLIA management and other enforcement agencies through intelligence sharing and coordination of enforcement actions already taken."

The ministry said it collaborated with several enforcement agencies, including Apad, the Road Transport Department (RTD), the Immigration Department and tourism industry associations, to maximise action against those violating Act 482 and other relevant laws.

"Upon conviction, offenders may face imprisonment, a fine, or both, or be issued a compound, depending on the nature of the offence.

"Licences may also be suspended or revoked, in addition to fines, imprisonment or compounds.

"Action against licensed operators who breach regulations is ongoing, but the ministry's priority is to address unlicensed operators," it said.

On the growing number of umrah agencies operating without valid licences, the ministry said such offences fell under Subsection 5(2) of Act 482.

Those found guilty may face imprisonment of up to 10 years, a fine of up to RM500,000, or both, or a compound of up to RM250,000.