Impact of Treasury Circulars on Bumiputera Travel Agents
The Malaysian Association of Tour and Travel Agents (Matta) has expressed concerns over the impact of two recent Treasury circulars on the services of Bumiputera travel agents.
Concerns Raised by Matta
Matta deputy president Sheikh Awadh Abdullah has stated that the circulars, which encourage government departments, agencies, and government-linked companies to use corporate credit cards to purchase airline tickets as a cost-saving measure, have raised significant concerns among Bumiputera travel agents. The credit limit for these credit cards has also been raised from RM800,000 to RM1.8 million, leading to a preference for direct purchases from airlines with corporate credit cards, bypassing travel agents.
Impact on Travel Agents
According to travel agent Ali Abdul Malek, the new directives have raised concerns about the future of Bumiputera travel agencies, which play a crucial role in facilitating ticketing services for government-related visits and official trips of civil servants. He noted that travel agencies are now being asked to provide quotations, but are not engaged to book the tickets, leading to a decline in their services.
Limitations of Direct Bookings
Matta member Hashif Farid pointed out that the use of corporate credit cards does not always lead to lower costs. He noted that direct purchases on websites are subject to price fluctuations, which can result in unpredictable ticket costs, and frequent changes in flight schedules can lead to increased ticket prices. Travel agents, on the other hand, offer services like access to negotiated rates and additional support for cancellations or changes, ensuring the government’s expenditure is optimized.
Call to Reconsider Circulars
Sheikh Awadh urged the government to reconsider the implementation of the two circulars, stating that Matta is open to discussions on the matter. He emphasized the importance of maintaining the role of Bumiputera travel agents in the country’s travel industry.
Conclusion
The impact of the Treasury circulars on Bumiputera travel agents is a pressing concern, and it is important for the government to consider the long-term effects of these directives. Travel agents play a crucial role in facilitating ticketing services for government-related visits and official trips, and their exclusion from the process may lead to suboptimal solutions.
Frequently Asked Questions
- What are the concerns of Matta regarding the Treasury circulars?
- The circulars encourage government departments, agencies, and government-linked companies to use corporate credit cards to purchase airline tickets, bypassing travel agents.
- What is the impact on Bumiputera travel agents?
- The circulars have raised concerns about the future of Bumiputera travel agencies, which may lead to a decline in their services.
- What are the limitations of direct bookings?
- Direct purchases on websites are subject to price fluctuations, which can result in unpredictable ticket costs, and frequent changes in flight schedules can lead to increased ticket prices.
- What is Matta’s stance on the circulars?
- Matta urges the government to reconsider the implementation of the circulars and is open to discussions on the matter.