KUALA LUMPUR: The Malaysian Inbound Tourism Association (Mita), Malaysian Tourist Guides Council (MTGC) and Malaysia Van Operators Association (PVPM) are seeking diesel fuel subsidies for transport companies severely affected by the current conflict in the Middle East.
Mita president Mint Leong said the subsidy would help the industry weather this uncertain time.
"If the government agrees to provide an extraordinary subsidy, our proposal is that tourist buses with 40 to 45 seats are given 3,000 litres and tourist vans, 2,500 litres per month.
"We realise that obtaining this subsidy is not an easy matter, as many previous applications have been rejected.
"When the diesel price increased by 10%, we could sustain operations but now it has increased 82% to RM5.52 per litre, which is something we cannot cope with or absorb," she told the press here on Monday (March 30).
She added that tourist buses, vans and ferries are not included in the national diesel subsidy mechanism.
To ease the pressure of rising costs, Mita announced new prices for tourist bus and van services with immediate effect, so that operators and consumers are clear about the current costs.
"We have to increase the daily tour bus fare by more than 70% to 80% depending on the destination.
"For example the Kuala Lumpur to Ipoh tour bus used to cost RM1,500. It will now be RM1,900. KL to Kuantan will now be RM2,000. These are ceiling fares.
"This is a short-term 'quick win' measure to ensure that operators can continue to provide safe, reliable and high-quality transportation services," she said.
Additionally, Leong said the groups jointly propose that the government consider a more accurate and controlled support tax mechanism for licensed inbound tourism operators.
Through this mechanism, Leong suggested that the Inland Revenue Board (LHDN) provide appropriate tax relief or deductions during annual declaration, or in the form of subsidies to help reduce the cost of diesel.
This proposal can also be combined with the electronic invoice system that the government is currently introducing, using data from existing inbound tourist tax exemption forms as a basis, she added.
Leong also said there must be serious enforcement carried out against uncontrolled operations and unfair competition.
"We found that some foreign operators are exploiting the weaknesses of the existing system by taking tourists on subsidised express buses for point-to-point movement.
"Upon arrival at the destination, they provide connecting services and tours using vehicles without valid licences or 'black cars'. This activity is illegal and has a serious impact on legitimate local tour operators," she said.
MTGC president Jimmy Leong said the escalating war in the Middle East has created severe uncertainty in the tourism industry by shattering traveler confidence, causing immediate drops in bookings and triggering long-term economic damage to destinations as well as oil price increases.
"While major factors are external and uncontrollable by our government, there are certain areas at this crucial moment to be looked into, to assist the survival and sustainability of our tourism industry.
"Oil price increases have hurt Malaysia's tourism industry primarily by significantly inflating transportation operational costs, causing potential shutdowns for bus and van operators.
"The surge in diesel prices directly hikes tour costs, reduces margins for travel agencies, increases airfares, and discourages domestic travel due to higher costs," he said.
He said the current scenario poses a risk to Visit Malaysia 2026's target of 35.6 million foreign arrivals.
While outbound travel for Malaysians may decline because of high costs, there is a risk that regional tourists might also choose closer or more cost-competitive destinations if Malaysia's internal transport becomes too expensive, he said.
