Measures to reduce regulatory burdens on licensed tour operators

By TIN Media | Tourism Malaysia Published 1 month ago on 26 October 2020
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The Malaysia Productivity Corporation (MPC) announced a range of steps to minimize licensed tour operators' regulatory burden and assist them during the COVID-19 pandemic.

Regulations falling within the competence of the Ministry of Tourism, Arts, and Culture (MOTAC) concern license renewal applications made between 1 January 2020 and 31 December 2021 and the addition of fields and branches which no longer require the submission of an audited financial report.

“Besides, the approval of license renewal applications has been standardized to a period of two or three years, along with allowing tour operators to co-share office space for a short period to reduce their operating costs,” MPC said in a statement.

Datuk Abdul Latif Abu Seman, Director General of MPC, said that regulatory amendments have been made to respond to concerns posed by stakeholders within the context of the 'MyMudah' initiative.

“The government hopes that these changes will provide licensed tour operators with the flexibility they require to continue to sustain their business through the COVID-19 crisis,” he said.

Meanwhile, Uzaidi Udanis from Tourism Productivity Nexus  (TPN), has indicated that relaxing regulations will considerably ease pressures faced by approved tour operators as a result of major travel ban losses and travel restrictions both imposed in Malaysia and other world countries.

“Previously these regulatory requirements were meant to provide an assessment of a tour operator’s business and operational ability, to build consumer trust.

“However, since the onset of the COVID-19 crisis, tour operators are now unable to generate sales due to zero-to-low demand, which in turn has affected their assets and driven the need for them to reduce costs such as office leasing,” Uzaidi said.




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