Travel agencies handling outbound tours and Umrah packages have been given more time to comply with a new bank guarantee requirement. The Ministry of Tourism, Arts and Culture (MOTAC) announced on 11 May 2026 that the implementation date has been moved from 15 May 2026 to 1 January 2027.

The delay follows pressure on the travel industry from the ongoing West Asia conflict, which has affected both operations and the financial position of some agencies.

About The Bank Guarantee Requirement

The bank guarantee requirement is part of MOTAC’s broader effort to strengthen consumer protection in the outbound travel and Umrah sectors, where fraud cases have been a recurring problem. Under Regulation 6(1)(m) of the Tourism Industry Regulations (Tour Operating Business and Travel Agency Business) 1992, licensed agencies are required to hold a bank guarantee as a condition of operation.

The measure is designed to ensure that travellers and Umrah pilgrims have recourse if an agency fails to deliver on its obligations.

The Reason Behind The Delay

MOTAC said the decision was made after consulting industry associations and taking stock of the sector’s readiness. The West Asia conflict has disrupted travel bookings and strained cashflow for agencies that depend heavily on outbound and Umrah traffic, and the ministry concluded that pushing ahead with the original May deadline would have placed undue pressure on businesses already navigating difficult conditions.

The postponement is framed as a public interest measure, balancing traveller protection against the industry’s ability to absorb a new compliance cost without destabilising operations.

What This Means For Travellers

The existing licensing requirement remains in place. Travellers booking outbound or Umrah packages can verify that their agency holds a valid MOTAC licence before making any payment.

The bank guarantee, once in force, would add a layer of financial protection for consumers in the event of agency default. Until 1 January 2027, that protection is not yet in place. For those planning a pilgrimage this year, 2026 Haj costs have also remained unchanged despite broader concerns over fuel prices.

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Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

About THE AUTHOR

Iman Aminuddin

Iman Aminuddin

Iman writes about personal finance with curiosity. She is interested in the stories behind money, the hesitation around big decisions, and the small habits that shape financial futures. Off the clock, she is either dissecting a film or climbing her way up the leaderboard in her favourite games.

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