The Malaysian Association of Tour and Travel Agents (MATTA), expresses deep concern over the continued rise in diesel prices and its growing impact on tourism transport operators across Malaysia.
According to a recent survey conducted by MATTA on tour bus and van operators, 68.5% of tour van operators consume more than 1,500 litres of diesel per month per vehicle, while 54.8% of tour bus operators consume more than 3,500 litres per month per bus.
These figures highlight the significant fuel dependency of tourism transport operators, many of whom are already working with minimal returns on investment (ROI) and are only able to maintain day-to-day operations and fulfil existing contractual obligations.
The continuing increase in diesel prices is threatening the business viability of operators and the wider tourism ecosystem. MATTA is recommending temporary measures such as targeted subsidies and a surcharge mechanism to help bring some relief to stakeholders during the current crisis.
To preserve customer trust while ensuring business continuity, MATTA recommends the implementation of a temporary fuel surcharge mechanism, similar to that adopted in the aviation sector, that emphasises the importance of transparency and adoption of industry best practices in addressing this challenge.
Such surcharges should be implemented in a manner that does not contradict any relevant laws or regulations, with each company independently determining the appropriate surcharge based on its actual fuel consumption and operational profile.
This ensures that the surcharge remains fair, proportionate, and directly reflective of the additional costs incurred. The mechanism must also be clearly communicated to consumers, applied transparently, and strictly temporary in nature, with removal once diesel prices stabilise.
It should also be designed solely to offset the additional fuel costs incurred by operators, rather than to generate excess profit.
“The continued rise in diesel prices is placing an unsustainable burden on tourism transport operators, many of whom are already operating on very thin margins. It is critical that we adopt practical and balanced measures that ensure business continuity without compromising consumer trust. A temporary and transparent fuel surcharge mechanism, combined with targeted government support, will help the industry navigate this challenging period while maintaining service standards across Malaysia’s tourism sector,” said Nigel Wong, President of MATTA.
At the same time, MATTA calls on the Government to introduce targeted diesel subsidies to support tourism transport operators.
A proposal of up to 3,500 litres per month for each vehicle operated by legitimate tour vehicle operators would provide immediate and meaningful relief, helping operators manage escalating fuel costs while continuing to deliver essential services to the tourism industry.
“Tourism transport operators are not in a position to absorb continuous fuel cost increases. A temporary and transparent fuel surcharge mechanism is the most practical solution to ensure service continuity while maintaining customer trust. At the same time, targeted subsidies, such as the proposed monthly allocation of 3,500 litres, would provide immediate relief to operators who are struggling to sustain operations under current market conditions. This is not about increasing profits, but about survival and maintaining the integrity of Malaysia’s tourism supply chain,” said Subramaniam Kandasamy, Vice President of Land Transportation, MATTA.
MATTA remains committed to working closely with the Government and all relevant stakeholders to ensure the resilience, stability, and long-term sustainability of Malaysia’s tourism industry.
Source – MATTA