KUALA LUMPUR: Operating cost pressures on the country’s tourism sector following the rise in global fuel prices have caused some travel agencies to readjust their package prices.
Universiti Teknologi Mara (UiTM) senior lecturer Associate Prof Dr Faiz Izwan Anuar said fuel costs are among the main burdens for the sector, as they account for about 30% to 40% of the overall operating costs of travel agencies.
"When fuel costs rise, profit margins shrink, and we will see price increases in tourism industry products themselves.
"Although many tourists are eager to travel, the pressure from the global energy crisis may cause some of them to postpone such activities,” he said during a guest appearance on Bernama TV’s Apa Khabar Malaysia on Monday (April 13).
Today's segment was titled "Krisis Tenaga Global: Impak ke Atas Sektor Pelancongan" (Global Energy Crisis: Impact on the Tourism Sector).
However, Faiz Izwan said most tourists who have already made early bookings for hotels and transportation are likely to proceed with their travel plans.
On the implementation of targeted fuel subsidies by the government, he said it is a helpful but short-term measure and suggested that industry players shift towards more efficient models to reduce dependence on fossil fuels.
Meanwhile, Malaysian Association of Tour and Travel Agents (MATTA) vice-president (Air Transportation) Dr Fazil Khan Abdul Kadir said the cost increases are burdensome for industry players to bear on their own.
He cited the cost of a full tank of diesel for a tour bus, which has risen from around RM200 to RM600, while for a tour van, it has increased from about RM60 to nearly RM300.
"This impact cannot be borne solely by the industry. Therefore, we are forced to pass the costs on to consumers and inform them of price adjustments, possibly around 20% depending on the type of package,” he said, adding that feedback from tourists has been positive so far as they understand the situation.
However, despite the cost challenges, Fazil Khan said the situation has had a positive impact on the domestic tourism industry, as many locals are now choosing destinations within the country as an alternative to travelling abroad.
"We are seeing domestic microeconomic activity increasing. At the recent MATTA Fair, the domestic hall was packed with visitors who are now beginning to realise there are many interesting places within the country.
"This situation is also driven by the government’s efforts to stimulate the economy through Visit Malaysia 2026, and if it is extended until 2027, it will have a very positive impact on the industry," he said.
He also reminded the public not to be easily deceived by cheap travel package offers on social media that are priced unreasonably low.
"Please deal with travel companies that are registered with the Tourism, Arts and Culture Ministry.
"Many people have been deceived simply to save RM30 to RM50, and end up suffering greater losses,” he said. – Bernama
