Court upholds RM14,000 payout to umrah pilgrims over hotel downgrade

PUTRAJAYA: The Court of Appeal has upheld a High Court decision affirming a consumer tribunal’s award of RM14,000 in compensation to seven umrah pilgrims after a travel operator downgraded their accommodation in Mecca and Madinah.

In dismissing Tiram Travel Sdn Bhd’s appeal, a three-member bench ruled that the High Court was correct in rejecting the company’s judicial review application to quash the tribunal’s decision.

“There was no basis for the High Court to quash the tribunal’s award to the pilgrims on the ground of irrationality,” Justice Aliza Sulaiman said when delivering the court’s grounds of judgment.

The bench, which also comprised Justices Faizah Jamaludin and Ahmad Shahrir Salleh, ordered the company to pay RM30,000 in costs to lead claimant Shaliza Ahmad.

Shaliza filed the claim before the Consumer Claims Tribunal in 2024 on behalf of herself and six other pilgrims.

She alleged that the operator downgraded their accommodation from the promised five-star hotels to a one-star hotel in Mecca and an unrated hotel in Madinah without prior notice, forcing them to stay much farther from the holy mosques.

The tribunal awarded each pilgrim RM2,000 in compensation, totalling RM14,000.

Tiram Travel subsequently applied for a judicial review at the High Court to set aside the tribunal’s award.

In dismissing the application, High Court judge Arik Sanusi Yeop Johari ruled that the tribunal had acted within its powers and had reached its decision after giving both parties a fair hearing.

In his written judgment, Arik said the tribunal was entitled to find that the operator had failed to notify consumers of the hotel changes within a reasonable time, did not provide the services promised, and caused unnecessary inconvenience during the pilgrimage.

He also found that the tribunal chairman had allowed both parties to present evidence and make submissions, and had considered all relevant documents before reaching a decision.

Arik noted that although the travel operator had the opportunity to present its case, it chose not to call witnesses and relied solely on its written defence.

The dispute arose after the pilgrims, who each paid RM8,790 for an umrah package, discovered they had been placed in hotels significantly inferior to those advertised.

The tribunal also found that the pilgrims were informed of the hotel changes only after their arrival in Mecca.

Fadhly Yaacob appeared for Shaliza, while Azmi Azahar represented Tiram Travel in today’s proceedings before the Court of Appeal.