Around 50 travel agencies in Kuwait face the threat of closure due to their inability to meet conditions set by the International Air Transport Association (IATA).
IATA had given notice to about 300 travel agencies, stipulating that they have until the end of this month to rectify the situation, or face closure, reported Arab Times Kuwait.
Another 28 travel agencies in Kuwait modified their status during the first grace period that ended on 23 July .
The current situation follows the departure of a Jordanian insurance company from Kuwait's travel market, leaving agencies in limbo because they have been unable to find a replacement for the insurer. Consequently, IATA has asked that the tour agencies furnish, alternatively in lieu of surety insurance, bank guarantees to KWD75,000 ($249,000) in order to maintain IATA accreditation and continue issuing air tickets.
Though insurance services are available from a French insurance company, small Kuwaiti agencies are unable to meet the insurer's terms.