Two months before rising fuel costs 'kill' the tour bus industry, says MITA
KUALA LUMPUR: Tour bus operators are absorbing higher diesel costs for now, but the industry has warned the government it has at most two months before the financial strain forces operators to raise prices or leave the industry.
Tour bus operators in Malaysia are warning that they have at most two months before rising diesel costs force them to raise prices or exit the industry, according to the Malaysian Inbound Tourism Association (MITA). The unsubsidised diesel price has increased from RM5.27 to RM5.42 per litre, severely impacting operator margins. MITA president Mint Leong Hoon Min stated that the industry could only absorb the current losses for two months.
If fuel prices continue to rise, operators will become frustrated and unwilling to bear the burden any longer. When prices are raised, clients will not agree to the increased costs, leading to a decline in tour package sales to Malaysia, resulting in lost tourists. The unpredictability of weekly fuel price adjustments further complicates the situation, making it difficult for operators to quote stable prices to foreign partners.
Tour buses not only attract foreign tourists but also cater to local events such as weddings and cultural activities, making the sector uniquely vulnerable to unsubsidised fuel prices.
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