Malaysians have begin cancelling tour bookings to destinations such as Vietnam, Hong Kong and China in reaction to the incidence of severe acute respiratory syndrome (Sars).

On Wednesday, Transport Minister Dr Ling Liong Sik said the Kuala Lumpur International Airport (KLIA) received some 600 cancellations of flight bookings over the past two weeks, resulting in a three percent drop in flights.

The World Health Organisation has issued a travel advisory recommending the postponement of travel to Hong Kong and Guangdong (the Chinese province bordering Hong Kong), which are the two worst-hit areas in the region.

Inquiries received

Two Malaysian travel agents contacted claimed that business has dropped drastically since Monday..

Reliance Pacific Bhd corporate affairs manager Jeffrey Liew said the company had received "a lot of inquiries" from customers who were hesitant about travelling o­n scheduled trips.

He said most of them have deferred travel, but that a handful have had to proceed because of business obligations.

Albert Sia, tour department head of Johor-based Overseas Express Travel and Tours, said his agency had cancelled all trips to Sars-infected countries. More than 100 tourists had wanted to travel to China this week.

"But they are very understanding of the situation. Anyway, even if we did not cancel the trips, they would not want to risk their health by travelling at such a critical time," he said.

He said the company has not calculated the financial losses but expects it to be a "substantial amount of money".

The two agents said they are giving customers the option of deferring scheduled trip. Reliance has informed customers that they can postpone travel for up to six months from April 30.

Lew said it was unlikely that any travel agent would give full refunds to those who cancel bookings.

"We need to pay deposits to airlines, hotels and local tour agents before date of travel. The deposit comes from the payment collected from travellers," he said.

"It is a common practice for us to deduct some money, depending o­n how close the cancellation is made to the departure date."

'Middle men'

Malaysian Association of Travel and Tour Agents (Matta) president Tunku Iskandar Tunku Abdullah, contacted today, noted that there has been 50 percent drop in travel generally, and up to 70 percent to affected areas like Hong Kong, Guangdong and Vietnam.

"Our immigration representatives in China have been directed to stop issuing visas to tour groups from all parts of China," he said.

To counter the impact o­n the sector, the culture, tourism and arts ministry has directed travel trade to aggressively promote domestic tourism, especially among youth and students.

He also commented o­n a Sin Chew Daily report yesterday which quoted him as saying that there had been complaints from tourists that they were not allowed to defer their trips or obtain a refund if they choose to cancel bookings.

"Travel agents are o­nly middle men. In order for agents to give a refund, they must be able to get back money (deposits) from overseas hotels, tour operators or airlines. If they are able to do so, they will return the money to customers," he said.

He said most airlines will allow postponement of travel, but not cancellation of bookings.

"They are willing to issue credit notes to passengers and these are valid for a specific time period. It all depends o­n each airline's policy. Hotels are also willing to go along the same lines, by allowing a postponement of stay," he added.

In the Sin Chew report, he had said travel agents were not obliged to refund or allow customers to defer their trips since the World Health Organisation (WHO) had merely issued a travel advisory, not a ban, o­n certain countries.

"This is further subject to the terms and conditions in the agreement between a customer and an agent... Usually the agreement would spell out clearly if refunding or deferment is allowed. The customers must read it carefully before signing it," he reportedly said.

He added Matta would try its best to co-ordinate with airlines and hotels to retrieve the deposits so that the travel agents can refund their customers.