KUALA LUMPUR, 19 JUNE 2024: The Malaysian Association of Tour and Travel Agents issued a statement this week asking the government to review its recent announcement ending the diesel subsidy policy.
MATTA says the subsequent diesel price increases significantly impact van and tour bus operators and the tourism industry.
MATTA said it appreciated the government’s introduction of diesel subsidies for van and tour bus operators under the purview of the Ministry of Tourism, Arts, and Culture (MOTAC), which protected tour bus operators and the tourism industry during the post-Covid recovery.
“However, our analysis shows that tour vans and buses consume substantial amounts of fuel monthly, with costs now rising by 54% due to the new diesel price of MYR3.35 per 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.
“Recognising the government’s earlier initiative, we are submitting a formal proposal with specific recommendations to ensure a smooth transition that will ensure sustained growth in our industry:
MATTA president Nigel Wong emphasised in the statement the importance of fuel subsidies in light of the upcoming Year of Visit Malaysia 2026 (VM2026) campaign.
“The Ministry of Tourism, Arts and Culture (MOTAC) aims to attract 35.6 million foreign tourists to Malaysia. Fuel subsidies are crucial to alleviate the financial strain on operators, supporting competitiveness and ensuring the campaign’s success.”
MATTA is proposing an allocation of 3,000 litres quotas per month per unit vehicle diesel subsidy. The allocation would greatly assist in mitigating the financial burden caused by rising diesel prices and ensure the industry remains competitive.
Wong added, “We understand the objectives of the Madani Government and fully support them. However, the industry needs time to adjust. In the context of the contractual obligations facing many tour agents, we recommend a grace period to allow tour operators to meet these existing commitments without immediately bearing the losses from increased fuel costs.
“By implementing these measures, our industry will be better equipped to contribute significantly to Malaysia’s economy while ensuring that tourists receive the great experiences they expect in our beautiful country.
“We trust the Government, especially the Ministry of Finance and the Ministry of Tourism, Arts, and Culture (MOTAC), will consider our proposals to support the tourism industry during this challenging period.”
