Malaysian Tourism Federation urges government to implement diesel subsidy for van, tour bus operators

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The Malaysian tourism industry is facing a bumpy road due to rising diesel prices. The Malaysian Tourism Federation (MTF) is urging the government to implement a diesel subsidy mechanism to help van and tour bus operators navigate these challenges.

Why the urgency?

According to MTF president Datuk Tan Kok Liang, floating diesel prices have significantly impacted tour operators already grappling with fierce competition.  These rising costs can't be easily passed on to tourists due to existing contracts and price-sensitive markets like ASEAN and China.

MTF's Proposals:

The MTF proposes a two-pronged approach to support the industry:

Subsidy Extension: Extend the previous diesel subsidy rate of RM2.15 per liter for van and tour bus operators until March 31, 2025.

Quota System: Implement a minimum quota of 3,000 liters of subsidized diesel per vehicle per month.

Benefits of the Subsidy:

  • Financial Relief: Alleviates the financial burden on tour operators caused by rising diesel costs.
  • Industry Stability: Provides time for operators to adjust to the new pricing structure.
  • Competitive Edge: Keeps Malaysian tour packages competitive in the regional and global market.

Tourism Growth: Supports the government's target of attracting 35.6 million foreign tourists by March 2025.

Impact on Malaysian Tourism:

The Malaysian tourism industry is a significant contributor to the economy. By supporting van and tour bus operators, the government can ensure the industry's smooth operation and continued growth.

Looking Ahead:

The Malaysian government is currently considering the MTF's proposals. Whether or not a diesel subsidy will be implemented remains to be seen. However, the MTF's initiative highlights the challenges faced by the tourism industry and the need for potential solutions.

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