KUALA LUMPUR: With the diesel price soaring to RM5.52 per litre, a new price guideline has been introduced for tour bus and van operators beginning yesterday.
Malaysian Inbound Tourism Association president Mint Leong (pic) said the increase of 82% is to help ease the pressure of rising costs amidst the Middle East conflict.
She said tourist buses, vans and ferries are not included in the national diesel subsidy mechanism since the government abolished the subsidy in 2024.
“We have to increase the daily tour bus fare by 70% to 80% depending on the destination. For example, the Kuala Lumpur-to-Ipoh tour bus used to cost RM1,500. Now it will cost RM1,900 while the Kuala Lumpur-to-Kuantan bus will now cost RM2,000, which are ceiling fares.
“This measure is a short-term ‘quick win’ measure to ensure that operators can continue to provide safe, reliable and high-quality transportation services,” she said at a press conference together with the Malaysian Tourist Guides Council (MTGC) and the Malaysia Van Operators Association.
To this tune, she said they are also seeking diesel fuel subsidy to help the industry weather this uncertain time.
“If the government agrees to provide an extraordinary subsidy, our proposal is that tourist buses with 40-45 seats are given 3,000 litres while tourist vans are given 2,500 litres per month.
“We also realise that obtaining this subsidy is not an easy matter, as many previous applications have been rejected. If the diesel price increased by 10%, we could sustain but now it has increased 82% with RM5.52 per litre, which is something we cannot cope with or absorb,” she said.
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, she 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.
MTGC president Jimmy Leong said the Middle East conflict has created severe uncertainty in the tourism industry by reducing traveller confidence, causing 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 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.
Meanwhile, Malaysian Indian Travel and Tour Association president Datuk Aruldas Arulandu said the government could offer a temporary diesel subsidy between six and nine months for the industry to help overcome the current problem.
“We are talking about sustaining the industry because to adjust the costing, we need the necessary time frame.
“This scenario is not the same as during Covid-19 because we don’t even know what is going to happen next Monday. About 25% of the package cost goes into transportation, 45% is for the hotel and the remainder is for food and others, but we are hardly making anything,” he added.
