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  Wednesday, May 7, 2008, Rabi-ul-Sani 30, 1429    

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Problems of Hajj thru private operators

A R Abid
Email: abidjs@gmail.com

The process of privatizing Hajj in Pakistan started from Hajj-2005, when selection of Hajj Tour Operators was made purely on merit, strictly observing the laid down criteria of having at least three years experience in providing services to Hajjis. Unfortunately, this criterion could not be followed during subsequent years. As a result, Travel Agents and other private persons, having no experience of Hajj jumped into this field. In the absence of a regulatory mechanism, they started charging heavy profit from Hajjis. This attracted a large number of people towards this business. Last year, the number of applications for grant of license was around 2,200 which is likely to further increase this year. Hajj Tour Operators are earning huge profit without any check. Sometimes, this profit margin goes up to Rs. 30,000/- per Hajji. The craze of people to get license for organizing Hajj Groups has become a nuisance for the Government. Ministry of Religious Affairs is facing tremendous pressure from Parliamentarians, Military Officers and Bureaucrats in this respect. This flood needs to be stopped.

The main issues leading to the above complex situation can be summarized as follows:-
a) Privatization of Hajj was made in haste. Nobody at that time thought that a strong and perfect regulatory mechanism is always a pre-requisite for privatization. Hence Hajj Tour Operators are earning huge profit as there is no law for taking action against them.

b) During first year of privatization, selection of Tour Operators was made purely on merit after prescribing a criteria (i.e. at least 3 years experience of providing Hajj services), which was strictly adhered to for Hajj-2005. Thus they provided services to Hajjis in all seriousness, although they earned a lot of profit also.

c) During Hajj-2006, Travel Agents (with no experience of Hajj) were included in the list of Hajj Tour Operators. During Hajj-December 2006, even those who had no experience of running travel agencies were also approved. Thus most of them sold their quota to others and many of them failed to provide services to their Hajjis.

d) During Hajj 2007, a few more inexperienced Tour Operators were added to the list. Those who could not get quota went to the High Court and Supreme Court where litigation is going on.

e) M/o. Religious Affairs is now in a fix and does not know how to proceed further for Hajj- 2008. A large number of new entrants are eagerly waiting for submitting applications for new license. Tremendous pressure is building up on Ministry of Religious Affairs from Parliamentarians and senior military officers for grant of quota to new entrants. In case Ministry reopens the issue and grants new licenses, it will open a Pandora’s Box and it would become impossible to stop this flood of inexperienced tour operators.

Two options are suggested as short term solution:-

1) The best option is that the Private Scheme may be stopped forthwith temporarily for 2 or 3 years. A regulatory mechanism may be put in place in the first instance. An independent Regulatory Authority may be established immediately with required expertise to control this mafia of travel agents and in-experienced tour operators. Necessary legislation may be undertaken by Regulatory Authority after which Private Scheme may be revived gradually under strict watch and ward by Regulatory Authority, as has been done in case of Electricity, Gas and Communication sectors. During this interim phase, Hajjis should be sent only under Government Scheme for which provision exists in Saudi Regulations.

2) The second option is that both Government and Private Schemes may continue with the following amendments, which are essential to stop the existing sale of quota by in-experienced Tour Operators to experienced Tour Operators and sale of Hajjis by sub-agents to approved Tour Operators:-

a) Tour Operators may be selected according to the criteria given below and their lists may be disseminated through banks and newspapers.

b) Initially, no quota may be allocated to Tour Operators.

c) All Hajj applications may be invited by the Government through banks as in past.

d) All Hajj applicants may initially deposit Hajj dues prescribed under Govt. scheme in banks.

e) Option may be given to applicants whether they want to perform Hajj under Govt. Scheme or Private Scheme.

f) Those who opt for Private Scheme may be required to give 3 choices of their Tour Operator in order of priority from the approved list.

g) Quota may be allocated to Tour Operators as per choice of Hajjis after making final adjustments.

h) Difference of Hajj dues may be collected by Tour Operators from Hajjis allocated to them according to the Package.

i) The amount of air ticket under Private Scheme may also be paid by the Ministry direct to the Airlines.

This will stop the sale of quota by Tour Operators and sale of Hajjis by sub-agents.

The following criteria for selection of Tour Operators is suggested, which may be strictly adhered to without accepting any pressure from Parliamentarians and Military Officers:-

a) All Hajj Tour Operators registered so far should go through a strict scrutiny process. Those who did not perform well during past years may be black-listed. Those who sold their quota may also be banned. Those against whom Hajjis have made complaints and after investigation, violation of package has been proved against them, they may also be declared ineligible.

b) After the above filtration, Hajj Tour Operators for Hajj-2008 may be selected from the existing approved list and quota may be allocated to them according to the following categories:-

Category Minimum experience of providing Hajj services as Executive Director (not as sub-agent)Quota

A 6 years 600, B 5 years 500, C 4 years 400, D 3 years 300, E 2 years 200

c) After allocating private quota seats as indicated above, if there is some balance, then those Travel Agents (who have no experience of Hajj) may be selected. They should be allocated 100 seats each.

d) Those who have no experience of Hajj or Travel Agency may not be considered at all for grant of quota under any circumstances.

e) Hajj application forms may be provided to Tour Operators only when they deposit Hajj dues (Rs. one lac per Hajji).

f) Substitution may be allowed in death cases only.

g) Deadline may not be extended. After deadline, the unutilized quota may be allocated to other Tour Operators who deposit Hajj dues.

 

 

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