The Malaysian Association of Tour and Travel Agents (MATTA) urges the government to consider introducing temporary fuel subsidies for tourism transport operators following the recent increase in fuel prices, which is expected to significantly impact the tourism sector.
Tourism transport operators across Malaysia play a crucial role in supporting both inbound and domestic tourism. Many of these operators have already entered into contractual agreements with overseas and local travel agencies months in advance to provide transportation services for tourists exploring Malaysia. The prices quoted and agreed upon by both parties were based on the prevailing fuel prices at the time the contracts were signed.
With the recent hike in fuel prices, operators are now facing substantially higher operating costs. However, as these contracts have already been finalised, tourism transport providers are unable to revise their agreed rates. This situation places many operators under considerable financial pressure and may result in significant operational losses.
For example, the cost of fuel for a standard tour bus has increased significantly. Prior to the fuel price hike, the cost of a full tank was approximately RM747 per bus. Following the recent increase, the cost has risen to RM969 per bus per tank, representing an estimated 35% to 38% increase. If there is no intervention from the government to cushion this impact, tourism transport operators may have no choice but to increase transportation charges by at least 30% from current rates to remain financially sustainable.
President of MATTA, Nigel Wong said the situation warrants timely intervention to ensure tourism transport operators can continue operating sustainably and support the broader tourism ecosystem.
“Tourism transport operators are a vital part of Malaysia’s tourism value chain, providing essential services that ensure smooth and reliable travel experiences for visitors. Many operators have already committed to fixed contract rates with travel agencies based on earlier fuel prices. The sudden increase in fuel costs means they are now absorbing these additional expenses, which could lead to significant financial strain,” said Wong.
He noted that the industry had previously demonstrated resilience when tourism vehicles were excluded from the diesel subsidy rationalisation, stating:
“Previously, when tourism transport vehicles were excluded from the diesel subsidy programme, operators accepted the policy decision and continued to operate despite the challenges of maintaining competitive pricing. However, the latest fuel price hike places an even heavier burden on the sector and could have an adverse effect on businesses if no mitigating measures are introduced.”
He stressed that targeted and temporary assistance would help cushion the impact while safeguarding the sustainability of the tourism supply chain.
MATTA respectfully calls on the government to consider providing temporary and targeted fuel subsidies specifically for tourism transport vehicles. Such support would help operators manage the sudden increase in operating costs and ensure they are not forced to operate at a loss.
“Ensuring the sustainability of tourism transport services is critical as Malaysia prepares to welcome more international and domestic visitors in the lead-up to Visit Malaysia 2026. Timely support for this sector will help preserve service quality, maintain industry stability, and enhance Malaysia’s competitiveness as a preferred tourism destination,” Wong said.
MATTA remains committed to working closely with the government and industry stakeholders to ensure the continued resilience and growth of Malaysia’s tourism industry.
Source – MATTA