The Malaysia Tourism Federation called on the government to implement diesel subsidies for tour van and bus operators
The Malaysia Tourism Federation (MTF) has called on the Malaysian government to implement an “immediate and substantial” diesel subsidy scheme for tour van and bus operators. Star.
According to MTF president Datuk Tan Kok Liang, floating diesel prices have caused serious financial losses to tour operators and travel agencies, which are already facing an extremely competitive business environment. The issue of diesel subsidies is not just about passing on additional costs to tourists, he said, but also about honoring tour package arrangements contracts and obligations established for six to nine months next.
Rationalization of subsidy on diesel fuel in Peninsular Malaysia commencing on June 10, saw the floating retail price of diesel increase to RM3.35/litre for Euro 5 B10 and B20 diesel, and RM3.55/litre for diesel diesel Euro 5 B7. Sabah and Sarawak continue to receive retail diesel at a subsidized price of RM2.15 per litre.
Tour bus service operators have appealed to the government be added subsidized diesel control system (SKDS) program, said earlier this month that removing them from the targeted diesel subsidy list would cause them to incur losses. Supported diesel control system 2.0 (SKDS 2.0) for road transport starting in Marchwhile for private owners of diesel vehicles and small agricultural producers, subsidy support is distributed through Budi Madani.
“Business travel is about goodwill and relationships, and some of these key destinations are particularly price sensitive, especially the Indian, ASEAN and Chinese markets,” Tan said in a statement. Nation”.
Tan also called on the government to acknowledge that most tour operators are micro, small and medium-sized enterprises and that they are struggling to survive in the fiercely competitive regional and global market. To that end, Tan proposed extending the RM2.15 per liter diesel subsidy for the industry until March 31, 2025.
Additionally, the MTF chairman also proposed a minimum quota of 3,000 liters of subsidized diesel per month per vehicle until March 31, 2025. “Corrective action is crucial to provide travel companies the time needed to adjust to the new price structure and reduce the burden on travel companies.” Financial burden due to rising diesel costs. Tour operators are the backbone of the tourism industry and are vital to our economy,” he said.
Tan continued: “While we understand and support the Madani government’s objectives and the rationalization of diesel subsidies, the industry still needs immediate and decisive support from the public stakeholders to overcome this crisis.”
Every trip made by these buses at the promised price before rationalization of diesel fuel subsidy causes losses, making it unsustainable for tour operators, he added.
“Every month, tour operators are losing about RM3,600 per bus based on an average consumption of 3,000 liters per month and rising diesel prices,” he said, adding that there are about 10,000 tourist vehicles on the road that there is no targeted support over the next six months. month and tourism operators could lose more than RM100 million in the same period.
“The tourism ecosystem includes many service providers and intermediaries. Ultimately, the contracting party may end up having to bear the brunt of the increase,” Tan said as he called on the ministries of finance, transport and tourism, arts and culture to act quickly and review the issues. union output.
The Peninsula Tourist Bus Operators Association announced earlier this month that operators would face a Operating costs increased by 30% through subsidy rationalization. As of this month, a total of 33 types of road vehicles are eligible to receive subsidized diesel under the subsidized diesel control system (SKDS) 1.0 and 2.0 programs, and The government is looking to introduce more types of vehicles to qualify.
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