Debated in Parliament on 14 Feb 2022.
Mr Desmond Choo asked the Minister for Trade and Industry (a) how many travel agency licences have been revoked due to the failure to meet the $10,000 financial asset requirement for a licensee that is a sole proprietor, partnership or an unincorporated association in Regulation 9 of the Travel Agents Regulations 2017; (b) what factors does the Ministry consider in fixing this requirement; and (c) whether the Ministry will consider reducing the minimum financial requirement further in light of the uncertain global travel outlook.
The minimum financial requirement is imposed to ensure that travel agents have the financial means to fulfil their commitments to customers. With the onset of COVID-19 in 2020, MTI reduced the minimum financial requirement for travel agents holding a general licence to $10,000 to ease the cashflow of travel agents, which saw a sharp drop in business. Given the prolonged nature of the pandemic, MTI extended the reduced minimum financial requirement till the end of 2022.
Since the minimum financial requirement was reduced in 2020, no travel agent licences have been revoked due to a failure to meet the minimum financial requirement.
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