I REFER to the Bernama report "Angkasa wants ministry to review Tourism Industry Act".
The Malaysian National Cooperative Movement Berhad (Angkasa) is unhappy with the Tourism Industry Act 1992, as Tour Operating Business and Travel Agency Business (TOBTAB) licences are granted only to private limited (Sdn Bhd) or limited (Bhd) companies.
Angkasa has urged the Tourism and Culture Ministry to review the Act, which compels cooperatives to set up subsidiary companies to apply for TOBTAB licences.
Its president, Datuk Abdul Fattah Abdullah requested for Angkasa to be exempted, as cooperatives are business entities and therefore do not need to set up subsidiary companies to be involved in the tourism sector.
He told reporters "It is sufficient to have the cooperatives. At present, we have to set up subsidiary companies to be involved in tourism. The result is that we lose out on many business opportunities. We want the Act to be amended to include cooperatives, or any organisation which is registered with the Malaysian Cooperatives Commission".
If Angkasa's request is granted, which is unlikely, it would open the floodgates for many people to jump on the bandwagon without fully understanding what the tourism business is all about.
If it is the travel sector that Angkasa is interested, it is a business that must be run by people with passion and expertise.
For example, no large corporation had bought over a reputable tour company as it is just a shell if key personnel leave. It was normal for a large group of staff to leave and set up their own company, bringing along customers and business with them.
It is rare for elected officials or management staff of cooperatives to develop such a bond with customers or the capability to master the art of inbound or outbound tour business. It is much easier to run a retail outlet by sourcing products at low costs.
Since 2008, airlines have stopped giving commissions of 5% for domestic flights and 9% for international flights. There is no point setting up a travel agency unless one can secure major corporate accounts and charge management fee for handling corporate travel.
Malaysia's tourism receipt from foreign visitors is expected to reach RM168 billion by 2020, and those getting 72% of the cake do not need a TOBTAB licence, as they are in sectors involving shopping, accommodation and food & beverage.
Anyone wishing to do business in this country could easily set up a sole proprietorship business or private limited company with one or more persons. Large corporations set up subsidiaries so as not to expose the entire organisation.
Even associations set up subsidiaries to do business to incur less income tax. If a cooperative wishes to venture into a business which is not its forte, it is better to stay out and explore franchise opportunities.
Multiangled Views
Kuala Lumpur
The Malaysian National Cooperative Movement Berhad (Angkasa) is unhappy with the Tourism Industry Act 1992, as Tour Operating Business and Travel Agency Business (TOBTAB) licences are granted only to private limited (Sdn Bhd) or limited (Bhd) companies.
Angkasa has urged the Tourism and Culture Ministry to review the Act, which compels cooperatives to set up subsidiary companies to apply for TOBTAB licences.
Its president, Datuk Abdul Fattah Abdullah requested for Angkasa to be exempted, as cooperatives are business entities and therefore do not need to set up subsidiary companies to be involved in the tourism sector.
He told reporters "It is sufficient to have the cooperatives. At present, we have to set up subsidiary companies to be involved in tourism. The result is that we lose out on many business opportunities. We want the Act to be amended to include cooperatives, or any organisation which is registered with the Malaysian Cooperatives Commission".
If Angkasa's request is granted, which is unlikely, it would open the floodgates for many people to jump on the bandwagon without fully understanding what the tourism business is all about.
If it is the travel sector that Angkasa is interested, it is a business that must be run by people with passion and expertise.
For example, no large corporation had bought over a reputable tour company as it is just a shell if key personnel leave. It was normal for a large group of staff to leave and set up their own company, bringing along customers and business with them.
It is rare for elected officials or management staff of cooperatives to develop such a bond with customers or the capability to master the art of inbound or outbound tour business. It is much easier to run a retail outlet by sourcing products at low costs.
Since 2008, airlines have stopped giving commissions of 5% for domestic flights and 9% for international flights. There is no point setting up a travel agency unless one can secure major corporate accounts and charge management fee for handling corporate travel.
Malaysia's tourism receipt from foreign visitors is expected to reach RM168 billion by 2020, and those getting 72% of the cake do not need a TOBTAB licence, as they are in sectors involving shopping, accommodation and food & beverage.
Anyone wishing to do business in this country could easily set up a sole proprietorship business or private limited company with one or more persons. Large corporations set up subsidiaries so as not to expose the entire organisation.
Even associations set up subsidiaries to do business to incur less income tax. If a cooperative wishes to venture into a business which is not its forte, it is better to stay out and explore franchise opportunities.
Multiangled Views
Kuala Lumpur