MTF president Tan Kok Liang said an overhaul of the Act was urgently needed, pointing to inconsistencies in the existing regulations.
He said one example was the requirement for tour buses to be accompanied by a licensed tour guide, even though hire-and-drive vans or e-hailing multipurpose vehicles were exempted and their drivers often act as tour guides.
“This double standard must be addressed. The rules and regulations need to be realigned to ensure a fair and level playing field for all stakeholders,” he said in a statement.
Tan said Malaysia’s tourism sector needed a regulatory framework that was agile, forward-thinking and resilient against evolving business practices, technological disruptions, and shifting consumer expectations.
“Every day these reforms are delayed, we fall further behind in an intensely competitive global market,” he said.
Earlier this month, deputy tourism minister Khairul Firdaus Akbar Khan said the ministry will review the Tourism Industry Act and engage stakeholders to obtain their feedback.
He was replying to Temerloh MP Salamiah Nor, who had asked if the ministry would consider reviewing or scrapping the provision which requires tour buses to be accompanied by a licensed tour guide.
Tan said licensed tour guides were critical to ensuring the safety of tourists and enhancing their overall experience, but maintained that a rigid, one-size-fits-all policy was not the way to go.
“Circumstances vary, and companies should be trusted to decide based on their specific needs, customer expectations, and safety considerations,” he said.
He also called for the tourism ministry to establish stricter requirements for foreign participation in the sector to protect local businesses and ensure they benefit from the surge in tourist arrivals.
He cited a provision which allows 100% foreign ownership of inbound travel agencies with a mere RM1.5 million paid-up capital, saying this was detrimental to local companies.
“This policy creates an uneven playing field, allowing foreign players easy entry into a low-capital business environment while sidelining Malaysian entrepreneurs,” he said.