Not wise to al­low co-ops to ven­ture into tourism

New Straits Times - - Letters -

I RE­FER to the Ber­nama re­port “Angkasa wants min­istry to re­view Tourism In­dus­try Act” on July 29.

The Malaysian Na­tional Co­op­er­a­tive Move­ment (Angkasa) is un­happy with the Tourism In­dus­try Act 1992 be­cause the Tour Op­er­at­ing Business and Travel Agency Business (TOBTAB) li­cence is 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 the TOBTAB li­cence.

Its pres­i­dent, Datuk Ab­dul Fat­tah Ab­dul­lah, has re­quested for Angkasa to be ex­empted, as co­op­er­a­tives are business en­ti­ties and, there­fore, do not need to set up sub­sidiary com­pa­nies to ven­ture into tourism.

If Angkasa’s re­quest is granted, it will open the flood­gates for many to jump on the band­wagon with­out un­der­stand­ing what the tourism business is all about.

If it is the travel sec­tor that Angkasa is in­ter­ested, it must be run by ex­perts.

For ex­am­ple, no large cor­po­ra­tion has bought over a rep­utable tour com­pany be­cause it is just a shell, and key per­son­nel can leave any time. It is nor­mal for a large group of staff to leave a com­pany and set up their own, tak­ing along the cus­tomers.

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 busi­nesses. It is much eas­ier to run a re­tail out­let by

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