THE Malaysian Association of Tour and Travel Agents (MATTA) has submitted a formal proposal to the Madani government for tour operators to be considered for diesel subsidy in light of the upcoming Visit Malaysia 2026 (VM2026) campaign.
Among others, the industry group has proposed a diesel subsidy allocation quota of 3,000 litres/month per unit of vehicle, namely van and tour buses.
“This allocation would greatly assist in mitigating the financial burden caused by rising diesel prices and ensure the industry remains competitive,” MATTA president Nigel Wong pointed out in a statement.
“The Tourism, Arts and Culture Ministry (MOTAC) aims to attract 35.6 million foreign tourists to Malaysia. Fuel subsidies are crucial to alleviate the financial strain on operators, hence supporting competitiveness and ensuring the campaign’s success.”
He added: “We understand the objectives of the Madani government and we fully support them. However, the industry needs time to adjust given the contractual obligations that many agents have.
“A grace period would allow tour operators to meet these existing commitments without immediately bearing the losses from increased fuel costs.”
By implementing the stated measures, Wong expects industry players to be better equipped to continue contributing significantly to the Malaysian economy while also ensuring that tourists receive the great experiences they expect in our beautiful country.
“We trust that the government, especially the Finance Ministry and MOTAC, will consider our proposals to support the tourism industry during this challenging period.”
Earlier, MATTA contended that even prior to the upward diesel price adjustment, its analysis has shown that tour vans and buses consumed substantial amounts of fuel monthly with costs now rising further by 54% due to the new diesel price of RM3.35/litre (previously RM2.15/litre).
“This increase has caused a considerable financial burden on our sector, challenging our ability to maintain competitive pricing and deliver high-quality services to our tourists, both international and domestic,” justified Wong.
Prior to this, some tour operators had arbitrarily raised charges following the free float of diesel effective June 10 which put them at odds with the enforcement unit of the Domestic Trade and Living Costs Ministry which are clamping down hard on profiteers. – June 18, 2024
