THE Malaysian Budget and Business Hotel Association (MyBHA) has brushed off the Malaysian Inbound Tourism Association (MITA) and Federation of Malaysian Consumers’ Associations (FOMCA)’s statements on the regulation of online travel agencies (OTAs), calling both messages “uncalled for”.
MITA president Uzaidi Udanis had previously warned that regulating online travel agencies (OTAs) will backfire on Malaysia and make the country seem “less attractive”.
FOMCA president Datuk Marimuthu Nadason, on the other hand, stated that consumers will be the ones at a loss if the Government takes up the call by budget hoteliers to regulate online travel booking platforms.
“Both messages are uncalled for as only hotel owners or operators will know the issues and problems faced by the hotel industry,” said MyBHA deputy president Sri Ganesh Michiel.
“As non-hoteliers, both groups cannot possibly understand the internal critical issues faced by the industry”, he added.
Being an association with members in inbound tourism companies and agencies,MyBHA said that MITA’s objective should be clear in protecting the members of the association.
“Having the necessary regulations will be fair game for OTAs as we are local or traditional travel agencies.
“Enacting a law in regulating new normal businesses as well as protecting the tourism and hotel industry will not make Malaysia look less attractive but will show that our country has proper regulations in protecting all parties from consumers and hoteliers to local travel agencies,” he continued.
According to Ganesh, the Malaysian Government has full power in regulating any type of businesses carried out in the country.
This is despite the company, who owns the OTA, is a foreign company.
“Are we going to allow our industry to be colonised by foreign companies? We should not allow this new normal in technology colonisation.
“Having a proper income and justifiable profit will assist hoteliers in providing great hospitality services and will allow the Government to collect taxes that can be used to further enhance the industry.”
Ganesh opined that by controlling the profiteering of OTAs charging exorbitant commissions, consumers will gain, and hotels are then able to offer better rates.
“OTAs withdrawing their services from Malaysia will benefit local travel agencies, but we need to understand that the era of new normal had led to 95% of domestic tourists using unregulated online travel agencies.
“We agree in being competitive and innovative but we disagree about the unfair competition and price wars.
“Enacting an act to regulate all types of OTAs will level the playing field while ensuring that the hotel industry is not colonised using technology without any Government enforcement or regulation.
“All efforts to revive the hotel and tourism industry will not be successful if the Government still fails to resolve the industry threats that are still a major factor affecting the recovery of the industry,” he remarked. – Sept 27, 2021
