Tourism groups urge govt to introduce fuel subsidies amid rising costs

 They say the increase in fuel prices due to the war in the Middle East has placed them under considerable financial pressure.

Fuel costs for tour bus operators have gone up by between 35% to 38%, according to Matta president Nigel Wong. (Hop On Hop Off Bus pic)

PETALING JAYA:

 Tourism players want the government to provide them with fuel subsidies following a sharp rise in global fuel prices, which they warn could threaten the sustainability of services during Visit Malaysia 2026.

The Malaysian Association of Tour and Travel Agents (Matta) and the Malaysian Inbound Tourism Association (Mita) highlighted the impact of rising fuel costs on operators who have already committed to fixed contracts with domestic and international travel agencies.

Matta president Nigel Wong said the increase in fuel prices has placed operators under considerable financial pressure.

“Tourism transport operators are a vital part of Malaysia’s tourism value chain, providing essential services that ensure smooth and reliable travel experiences for visitors,” he said in a statement.

“The sudden increase in fuel costs means they are now absorbing these additional expenses, which could lead to significant financial strain.”

Wong noted that fuel costs for a standard tour bus have risen from RM747 to RM969 per tank, representing a 35% to 38% increase, and warned that operators may have to raise charges by at least 30% if there is no government intervention.

Mita vice-president for transport Logeswaran K Sukumar said the rise in fuel prices, driven by the ongoing geopolitical conflict stemming from the US-Israel war with Iran, has compounded the challenges faced by operators who are still recovering from the Covid-19 pandemic.

“Special fuel subsidies for registered tourism vehicle operators, targeted grants to cover operational losses, and support for vehicle spare parts are urgently needed to help the sector remain sustainable.

“Timely support will help operators retain drivers and staff, maintain service quality, and safeguard the tourism supply chain,” he said.

The associations said tour buses, vans and rental vehicles are essential for bringing domestic and international tourists to destinations across Malaysia, and that government support is critical to ensure the sector can continue operating without passing unsustainable costs on to travellers.

They said they remain committed to working closely with the government and industry stakeholders to ensure the continued resilience and growth of Malaysia’s tourism sector for VM2026. - FMT