Close to 50 tour and travel agencies could close their business in the Gulf country for lack of insurance and inability to increase their bank guarantees to KD75,000 required by the International Air Transport Association (IATA), reports say.
The threat came following the recent exit of a Jordanian insurance company from the travel market. The Jordanian company used to cover tourism agencies. Its exit has put the agencies in a difficult situation.
A French insurance company operating in the gulf country is boycotted by several agencies over its stricter stipulations.
For lack of insurance, the IATA demanded that the firms scale up their bank guarantee. They also could keep operating by using the new ‘Easy Pay’ method.
The agencies have judged the IATA’s demand quite high. As the end August deadline approaches, nearly 60 per cent of the Arab country’s travel and tour agencies could fold their business, in a move that will hamper the travel and tourism sector.