Kuwait travel industry faces major hit by IATA

The International Air Transport Association (IATA) has notified 131 travel and tourism agencies in Kuwait that the insurance companies that cover these agencies will end their services from 25 July.

Many airlines are understood to have given grace periods to the agencies in order for them to find alternative insurance solutions prior to the deadline, failing which they said they would stop issuing tickets to these companies.

In line with IATA regulations, travel and tourism agencies rely on three methods for insurance coverage — banking insurance, proprietary system of insurance companies, or the new ‘Easy Pay’ method.

Industry experts say the move by IATA could jeopardize the travel and tourism sector, with the erring agencies forming nearly 35 percent of the total number of travel agencies in Kuwait.