By PAUL MU
KOTA KINABALU: Sabah tourism industry players have urged the Federal Government to recognise tourism transportation as an essential sector eligible for diesel subsidies under the Subsidised Diesel Control System (SKDS).
The call follows the government’s move to increase diesel prices from RM2.15 to RM4.37 per litre next month, a move they said would significantly affect tourism transportation operators nationwide.
Sabah Tourism Federation (STF) president Tonny Chew, Sabah Tourist Association (STA) chairman Melanie Chu, Sabah Enhanced Travel Innovation Association (SETIA) chairman Christina Wahida Kong and Sabah Association of Tour and Travel Agents (SATTA) chairman Justin Chong made the appeal in a joint statement.
“Timely intervention will not only safeguard industry players but also ensure that Malaysia remains a competitive and attractive destination in the regional tourism landscape, particularly in Sabah, where tourism infrastructure relies heavily on cost-sensitive transportation networks,” the statement said.
They warned that failure to extend fuel subsidies to the tourism transportation sector would result in serious consequences, including higher tour package prices and reduced competitiveness against neighbouring destinations such as Thailand, Indonesia and Vietnam.
This, they said, could lead to a decline in tourist arrivals, particularly from price-sensitive markets, as well as the closure of small and medium-sized tourism operators, especially in rural and island destinations.
Many workers across the tourism value chain, including drivers, tour guides and service providers, could lose their jobs, they added.
They also warned of a reduction in the quality of tourist experiences as operators are forced to cut costs to remain viable.
“It will have an adverse impact on national tourism targets and jeopardise the success of Visit Malaysia Year 2026 and Visit Sabah Year 2027,” they said.
Tourism, they said, is not merely a service industry but a major contributor to Malaysia’s economy, supporting thousands of livelihoods and promoting the nation on the global stage.
“The sustainability of this sector depends heavily on the viability of its transportation network,” they added.
They noted that many operators are still recovering from the long-term effects of the Covid-19 pandemic and that the sudden implementation of the diesel price increase has caught many tour operators and transport providers off guard.
“This is because a significant volume of bookings for July, August and the upcoming November-December school holiday season had already been secured and paid for in advance, with pricing calculated based on the previous diesel rate,” they said.
As a result, tourism operators in Sabah are now forced to absorb substantial and unplanned fuel cost increases, as these additional charges cannot be passed on retrospectively to customers.
To ensure fair and equitable support across key economic sectors, they called on the Ministry of Domestic Trade and Cost of Living (KPDN) to include tourism transportation operators under the SKDS subsidy scheme.
This would provide targeted diesel subsidies for licensed tourism vehicles, including buses, vans and boats that are integral to the tourism supply chain, they said.
They also urged the government to postpone the implementation of diesel price adjustments for the tourism sector, allowing operators time to adjust pricing structures and honour existing bookings.
In addition, they proposed the introduction of a partial subsidy mechanism for licensed tourism transportation providers to reduce the immediate financial impact.
They also urged Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing and Sabah Tourism, Culture and Environment Minister Datuk Jafry Ariffin to intervene and support the industry during this critical period.
“Their leadership is especially vital as Malaysia advances through Visit Malaysia Year 2026 and prepares for Visit Sabah Year 2027, both of which are key tourism initiatives aimed at boosting national and state economic growth,” they said.
From right are Tonny, Melanie, Christina and Justin representing Sabah tourism industry associations.
