They say urgent action is needed ahead of the upcoming Visit Malaysia Year 2026, which the government hopes will attract 35.6 million tourists and generate RM147.1 billion in tourism receipts.

The Malaysian Association of Tour and Travel Agents (Matta) said harsher punishment and stronger enforcement are needed to tackle the problem which has denied Putrajaya substantial sums in tax dollars over the years.

“The key thing is the Act needs to be modernised. As it stands, it is insufficient to tackle the modern problems in the industry today,” Matta president Nigel Wong told FMT.

Malaysian Tourist Guides Council president Jimmy Leong and Malaysian Budget and Business Hotel Association (MyBHA) president Sri Ganesh Michiel agreed.

They said the country risks having its image tarnished by the continued presence of illegal operators in the tourism industry.

Leong said a large number of unlicensed individuals are currently promoting their services online as tour guides. He said an “unpleasant” incident involving any one of them could ruin the country’s image as a reputable tourist destination.

Ganesh said the hoteliers he represents support the national agenda but must stand to benefit from it.

“Extensive promotion without proper policies means tourists will visit, but the benefits will go to illegal operators instead of registered hotels. This would result in failure,” he said.

Wong acknowledged that the tourism ministry’s enforcement of the law has been restricted by a limited budget and a manpower shortage. As a result, its enforcement officers tend to focus their efforts only on licensed tourism operators.

He urged the Treasury to allocate more funding to the tourism, arts and culture ministry so that it can expand the scope of its enforcement to weed out illegal operators and protect Malaysia’s overall tourism environment.

Last week, deputy prime minister Ahmad Zahid Hamidi said Putrajaya was reviewing the Act to ensure it meets the tourism market’s current needs, acknowledging that the law had not been updated for “a long time”.

 Matta calls for better protection, special court

Wong said the Act also needs to afford better protection to tour agents.

He said during the Covid-19 pandemic, agents faced with demands from customers to be reimbursed in full were unable to make claims under their insurance policies or secure refunds from airlines or hotels.

He also said the law should be made clear and simplified, pointing to how consumer tribunals have differed in interpreting it due to a lack of clarity.

The Matta president called for a special court to be established to deal with more complex cases, such as disputes on travel packages which consumer tribunals may not be able to adjudicate on effectively.

He said one agent who sold cruises saw one tribunal ruling in its favour and another rule against it despite both cases involving the same evidence and the dispute being over the same package, quantum, ship and dates.

“Everything was identical, but there was a lack of consistency. The agent had to spend time, money and resources having each complaint dealt with separately. So it’s an ineffective way to adjudicate such issues,” he said.

Wong also said the industry is still waiting for the government to implement measures to make doing business easier.

“There are still many red tape and cross-department issues that need to be sorted to make it easier for tourism players to do business,” he said.

 Review of other laws urgently needed too, says MyBHA

Meanwhile, Ganesh said Putrajaya also needs to review and amend several other laws urgently, including the Innkeepers Act 1952, given changes in the industry landscape over the years.

“For example, the current laws refer to traditional travel agencies, but what about online travel agencies? These agencies are not registered, controlled or regulated.”

He added that the process of amending these laws have taken too much time although the issues are not new. He also called for laws dedicated to regulating online travel agencies, short-term rental accommodations, and music royalty collections.

The music royalties issue has been unresolved for years, leaving some hotels hesitant to play any form of music due to the fees they may incur.