Running a Travel Business? Here’s How to Get Licensed with MOTAC! ✈️

You need to fill in Form 1 – Application for Licence to Carry on or Operate a Tour Operating Business and Travel Agency Business and submit it together with a processing fee of RM100.00. In addition, several documents must be submitted as stated in the application checklist. For further information, please visit www.motac.gov.my.

There are several conditions that need to be met. Among them are having sufficient paid-up capital according to the area where you wish to operate and the experience of members of the Board of Directors/shareholders in the field of tourism. For further information, please visit www.motour.gov.my.

The breakdown of shareholding, where it involves 70% national and 30% foreign holding, the maximum limit is 30% and applies only to the inbound and travel agency (ticketing) business.

Yes, companies/co-operatives are allowed to have shares in a tour operating company, although the breakdown of foreign equity (if any) needs to be examined.

You can refer to the Tourism Industry Act 1992 and the regulations made thereunder for all the regulation that need to observed by a tour operating company.

If the licence of the company was approved with a bumiputera percentage, the company is not allowed to reduce/dissolve the bumiputera percentage. However, no condition is imposed on the breakdown of the percentage between the bumiputera and non-bumiputera.

Prior application needs to be submitted for each change. It is allowed if allowed if it is not outside the area stipulated based on the paid-up capital.

An IATA licence is not required for a travel agency licence application.

The client charter for the approval of an application for a new tour operating business licence is 35 days from the receipt of the complete application.

The licence renewal period is 1 to 3 years , depending on the licence renewal conditions. For further information, please visit www.motour.gov.my

You must first have a tour agency licence from the Ministry of Tourism before you can apply for an excursion bus or hire and drive car licence.

Complete Form 1 – New Application for Excursion Bus Licence or Form 2 – New Application for Hire and Drive Car Licence with a processing fee of RM50.00. In addition, submit the documents listed in the application checklist. This checklist will be appended to the application form. For further information, please visit www.motour.gov.my.

The fee for the excursion vehicle licence is RM60.00 per year, while the hire and drive car licence fee is RM40.00 per year.

The age limit allowed for an excursion bus is 12 years while the age limit for a hire and drive car is 6 years for 1800 cc and below and 8 years for 2000 cc and above. The age limit for four-wheel drives is 10 years.

The ministry has no objection if a company wishes to use an imported vehicle but its age will be determined according to the year of manufacture and not the year it was registered as is the case for other vehicles.

An application must be made to the Ministry of Finance by completing the excise duty exemption form and obtaining confirmation from the Ministry of Tourism that the company possesses a hire and drive car licence.

No. Only national cars are eligible for excise duty exemption

Yes. However, only a 50% excise duty exemption is allowed and it is restricted to vehicles that are assembled in Malaysia.

Yes. You need to change the address by applying for a variation of the conditions of the licence of the excursion bus/hire and drive car.

You need to apply to change the number of seats by completing the application form to change the conditions of the licence or letter of approval. Please attach the bus body plan that has been approved by the RTD or the registration letter of the excursion bus which shows that the number of seats was originally 44 (for used vehicles).

The We Are The Host (WATH) Course is mandatory (it is normally included in the Basic Tourist Guide Course module) and the course certificate must be attached to the application form. Nevertheless, special considerations may be made.

The Eco-Host Course is mandatory. For applicants without this certificate, conditional approval will be granted but they are required to attend the course before they can submit their applications for renewal the following year. The course needs to be taken only once although it is also encouraged as a refresher course.

Applicants may be licensed again subject to the following conditions:
i) Attend a refresher course (city guide)/Eco-Host Course (nature guide).
ii) Reactivate membership in a tourist guide association.
iii) Undergo a medical examination.
iv) Submit an application by completing form 1 (Reg. 3).

Your renewal application can be processed on condition that you submit the remaining CTRE certificates within a period of 3 – 6 months (depending on the number of CTREs that you need).

Changing of guiding zone is not allowed. Applicants may conduct guiding assignments only in the area where they attended the Local Nature Course.

Commentaries in an excursion bus are the responsibility of a city guide. Nature guides are allowed to conduct their guiding assignments only in areas with natural products.

Foreign nationals may be licensed as temporary tourist guides subject to the following conditions:
i) Passed the Basic Tourist Guide Course/Induction Course/ attended the interview session to gauge the level of proficiency of (foreign) language and knowledge of tourism products in Malaysia.
ii) Secured an employment contract (full-time) with any tour operating company in Malaysia.
iii) Hold a valid passport.
iv) Member of a tourist guide association recognised by the ministry.

The functions of tourism training institutions are to provide training or courses relating to the tourism industry and the courses offered are diploma and certificate-type skill courses.

Those interested should set up a private limited company which is incorporated under the Companies Act 1965.

The paid-up capital required to set up a tourism training institution is a minimum of RM200,000.

The application form may be obtained from the Licensing Division of the Ministry of Tourism and regional licensing offices. It can also be downloaded from the website of the ministry. The processing fee is RM100 in bank draft or postal order.

No, because no individual is allowed to monopolise more than one company in the same field.

No. The Ministry of Tourism is responsible only for registering and classifying tourist accommodation premises. The licensing of tourist accommodation premises is under the responsibility of the local authorities.

Yes, the Registration of Tourism Projects and the Registration of Tourist Accommodation Premises have different objectives. The Registration of Tourist Accommodation Premises is for classification and inventory purposes, while the Registration of Tourism Projects is for promotion and incentive purposes.

There are two types of serviced apartments, namely residential serviced apartments involving long-term rental or permanent ownership which do not have to be registered and classified, and commercial serviced apartments which provide services offered by other hotels and which need to be registered.

The Orchid rating is a classification system created for budget accommodation premises which do not meet the requirements of the Star Classification Scheme.

Yes. The registration of tourist accommodation premises is mandatory for all accommodation premises as defined under the Tourism Industry Act, regardless of the number of rooms.

Complaints that may be submitted to the ministry should be with regard to the following matters:-

i)Tour operating business and travel agency business (TOB TAB).
ii) Excursion buses and hire and drive cars.
iii) Tourism training institutions.
iv) Tourist guides.
v) Tourist accomodation premises.

You may submit your complaint in writing, or by phone, fax or e-mail with your full name and address.

The documents that you should attach when submitting your complaint are those that are related to the package purchase invoice, the itinerary, payment receipts, photographs or any document that can support the validity of your complaint.

If your complaint is related to an external agency, it will be resolved within 3 working days and if it is directly related to matters under paragraph 1, it will be resolved within 21 working days.

The types of enforcement carried out by the ministry are as follows:-

i) Search of licensed and unlicensed tour operating businesses and travel agency businesses (TOB TAB).
ii) Inspection of licensed and unlicensed tourism vehicles.
iii) Inspection of licensed and unlicensed tourist guides.

The enforcement officers will normally show their authorisation cards signed by the Minister of Tourism.

The ministry enforces the following acts and regulations:-

i) Tourism Industry Act 1992
ii) Tourism Industry (Tour Operating Business and Travel Agency Business) Regulations 1992
iii) Tourism Industry (Licensing and Control of Tourist Guides) Regulations 1992
iv) Tourism Industry (Licensing of Tourism Training Institutions) Regulations 1994
v) Tourism Industry (Compounding of Offences) Regulations 1992;
vi) Tourism Vehicles Licensing Act 1999
vii) Tourism Vehicles (Licensing and Control of Tourism Vehicles) Regulations 2000.

The forms of action that may be taken by the ministry are as follows:-

i) Prosecution in court.
ii) Offer of fine.
iii) Suspension of licence.
iv) Revocation of licence.