Tourism Ministry reviews minimum RM250,000 bank guarantee requirement for Umrah operators amid rising fraud cases

PUTRAJAYA, Jan 18 — The Ministry of Tourism, Arts and Culture (MOTAC) is currently reviewing the requirement for umrah operating companies to put up a bank guarantee of at least RM250,000.

The bank guarantee for large-scale operators, will be increased according to the size of their company’s operations.

MOTAC announced the move following increasingly serious and frequent cases of consumer fraud.

“It is hoped that the policy which will be finalised, will be enforced as soon as possible,” it said in a statement today.

The bank guarantee for umrah operating companies is a requirement in the Tourism Industry Regulations under Act 482.

The move aims to ensure that quality services and the welfare of pilgrims are maintained.

“For example, when fraud occurs, funds from this bank guarantee will be used to compensate the affected victims,” according to the statement.

MOTAC stressed that if there are companies that cannot meet the minimum requirements, the ministry will not hesitate to revoke their licenses immediately without compromise.

The ministry stressed and reiterated its commitment to protect the interests of Malaysian umrah pilgrims by imposing strict action against any operating companies that fail to comply with the stipulated requirements and regulations.

“Indeed, MOTAC is disappointed that although action has been taken against operators who have failed to comply with the law before, there are still operators who continue to ignore their responsibilities,” according to the statement.

MOTAC said a total of 135 victims from various backgrounds came to MOTAC in Putrajaya yesterday to complain about operators who failed to manage their Umrah trips.

“This shows that this issue cannot be allowed to drag on any longer,” it said.

Previously, MOTAC had held an engagement session with representatives of Umrah Operators Association, namely the Association of Bumiputera Tour Operators (BUMITRA), the Association of Travel and Tourism Agents (MATTA) and the Association of Umrah and Hajj Travel Agencies (PAPUH).

According to MOTAC, the public’s trust in the umrah industry must be restored and operators who are negligent or irresponsible will not be given the opportunity to continue operating.

MOTAC also called on all umrah operators to comply with the rules and guidelines set out, which are not only to safeguard the interests of the public but also to ensure the integrity and credibility of the umrah industry in Malaysia. — Bernama