Malaysia Demands Rs 3.5 Lakh Bank Guarantee From TAs For Issuance Of I-Visa

Susan George - Chennai

In an unprecedented move, the office of the assistant high commissioner for Malaysia is demanding that travel agents (TAs) in Chennai show a bank guarantee of Rs 3.5 lakh for issuance of I-visa. Being touted as a pilot project in the city, the new regulation puts the onus of judging the bonafide intention of the traveller and their documents on the travel agent. Taking up the matter on behalf of its members, TAAI has issued a memorandum to the Malaysian tourism minister asking for the bank guarantee to be revoked completely. Says R A Govindaradjalou, chairman, TAAI - southern chapter, "This move will definitely affect tourism between the two countries. If this is implemented, then the small and medium agents will have to go through the bigger agents and this will undoubtedly hamper the tourist inflow to Malaysia."

Only three months ago did the office of the assistant high commissioner for Malaysia in Chennai introduce a system whereby they had nominated IATA agents, who are members of the TAAI, to operate by submitting the visa cases of their customers. In fact, TAAI members generate 85 per cent of the business and tourism traffic to Malaysia. However, from March 15, the old norms have been discarded and travel agents in Chennai have to conform to the new regulation of giving a bank guarantee of Rs 3.5 lakhs. The new regulation has emerged against a backdrop where the Malaysian minister of culture, art and tourism during his visit to India a few months ago assured the travel agent community of his support in enhancing bilateral tourism especially by relaxing the visa procedure for Indian tourists.

Speaking on the issue, a spokesman from the assistant high commissioner for Malaysia in Chennai said, "We outsource the work of issuing the I-visa to travel agents and expect them to be responsible." Responding to the indictment that the Malaysian government was placing the burden of the visa on the travel agent rather than the passenger, he argued, "These agents are the ones who see the applicant, examine their documents, key in data in the website, bring us the passport, take back the visa and deliver it to the applicant. The government of Malaysia doesn't want their money, they want genuine travel agents, not incompetent, fly-by-night operators."

However, according to Govindaradjalou, the travel agent served to ease the workload of the Malaysian embassy by keying in data of the traveller. Instead of recognising this, the new regulation only stifled the operations of the smaller travel agent. He added that arranging for visas is only an incidental part of the services that the travel agent undertakes for their client, and a very nominal sum was charged for the same. Pointing to the financial implications on the travel agent, Govindaradjalou says, "The bank guarantee implies that the 25-50 per cent of amount must be deposited in the bank. In addition to this, the travel agent must show a collateral security of about seven lakh. Additionally, about three per cent will be charged per year by the bank - which implies that annual sum of Rs. 11,000 will have to be borne by the travel agent." While TAAI believes that the Malaysian government with reconsider the move, the fallout on Malaysian tourism is yet to be calculated.