KOTA KINABALU: Tourism operators running island resorts, boat transfer services and inland eco-tourism operations are among those most affected by ongoing fuel supply and subsidy constraints, says the Sabah Tourism Board (STB).
Operators reliant on diesel for generators and daily boat transfers said repeated applications for fuel subsidies have been unsuccessful despite multiple submissions, STB added in a statement on Friday (April 24).
This followed a dialogue earlier in the day to discuss operational challenges arising from fuel supply constraints and subsidy access affecting the sector.
The discussion was chaired by STB chairman Datuk Joniston Bangkuai under the newly-formed STB Crisis Response Unit, aimed at facilitating dialogue with industry stakeholders.
The tourism operators also called for a review of the current subsidised quota, noting that the 200-litre daily cap for boat usage does not reflect actual operational needs in certain areas.
Joniston, who is also Assistant Minister to the Chief Minister, said the objective was to gather feedback from tourism players and compile issues and proposals for further deliberation with the state Tourism, Culture and Environment Ministry, as well as the federal Domestic Trade and Cost of Living Ministry.
"Next, we hope to facilitate engagement with (Domestic Trade and Cost of Living Minister) Datuk Armizan Mohd Ali with industry players," he said.
According to the operators' feedback, a single boat transfer In destinations such as Semporna can take between 40 minutes and an hour, significantly longer than in other locations, resulting in higher daily fuel consumption.
Those operating lodges and river cruises in areas like Kinabatangan also highlighted similar concerns over diesel supply shortages and quota limitations, with some operators beginning to scale back activities.
Participants also raised the need for the authorities to consider operational realities in island areas, citing the example of Selingan Turtle Island where an operator extends fuel support for generators to security personnel without charge, increasing the operational burden.
Several operators said they are absorbing higher fuel costs to honour existing bookings made before recent price increases, limiting their ability to adjust package pricing.
A hospitality sector representative also sought clarification on whether fuel subsidies could be extended to city-based hotels, particularly for operational uses such as laundry boilers, following the recent electricity tariff increase.
Among the suggestions put forward were for relevant agencies to review data on registered tourism boats in Sabah to better assess actual fuel requirements, as well as to explore broader financial measures.
These include potential engagement with the Finance Ministry on industry support mechanisms similar to those introduced during the Covid-19 pandemic, and discussions with financial institutions on possible loan moratoriums.
