KUALA LUMPUR – A 3,000 litre quota for subsidised diesel per month per vehicle will help tour vans and buses mitigate financial stress and sustain the tourism industry, the Malaysia Association of Tour and Travel Agents (Matta) said.
It has proposed the quota following the government’s nod to consider including tourism vehicles in the list of vehicles eligible for diesel subsidies.
The monthly quota per vehicle will “greatly assist in mitigating the financial burden caused by rising diesel prices and ensuring the industry remains competitive”, Matta president Nigel Wong said.
“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,” he said in a statement.
Tourism vehicles are not included in the list of those eligible for subsidies, which are mostly vehicles in the land public transport and logistics sectors.
Putrajaya’s consideration of tourism vehicles is only for operators recognised by the Tourism, Arts, and Culture Ministry (Motac).
Wong said the diesel price hike to RM3.35 per litre since June 10 and the withdrawal of blanket subsidies have had a significant impact on van and tour bus operators, thereby affecting the tourism industry.
“Before this price adjustment, our analysis showed that tour vans and buses consumed substantial amounts of fuel monthly, with costs now rising by 54% due to the new diesel price of RM3.35 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.”
Wong said a subsidy for the 3,000 litres of diesel per vehicle as proposed would help tourism players remain competitive and meet Motac’s goal of attracting 35.6 million foreign tourists to Malaysia.
“Fuel subsidies are crucial to alleviating the financial strain on operators, supporting competitiveness and ensuring the campaign’s success.”
Since last month, Matta has asked Putrajaya to extend the diesel subsidy to all types of tourism vehicles ahead of the move to raise the price of diesel on June 10.
The Malaysian Inbound Tourism Association (Mita) last week said it would temporarily increase rates by 20% for tour bus and van rental services starting June 17 following the hike in the retail price of diesel.
The increase is temporary, Mita said, pending the government’s decision to include them in the list of vehicles eligible for subsidies under the Subsidised Diesel Control System, which uses fleet cards. – June 18, 2024