KUALA LUMPUR, March 30 — The Malaysian government should offer diesel subsidies to tour buses and tour vans amid an 82 per cent jump in local retail diesel prices due to the Iran war, Malaysian Inbound Tourism Association (MITA) urged today.

MITA president Mint Leong said local tourism transport operators are struggling to cope with and absorb the increased costs from the diesel price hike, as most of their vehicles such as tour buses and tour vans use diesel. 

“MITA wishes to request to the government, if subsidies are given to the tourism industry, 3,000 litre per month for tour buses and 2,500 litre per month for tour vans,” she said in a press conference here, adding that this was a reasonable amount based on calculations from the local travel industry.

With the diesel retail price jumping from RM3.02 per litre from before the war to RM5.52 litre now, Leong said the local tourism industry has heard feedback of those tour bus and tour van operators who want to give up and shut down their businesses, as well as ferry operators who have already reduced trips to cope with increased costs.

“I want to call all industry players, don’t give up, don’t stop, however much we can “tahan” (stand it), we stand, but we still hope for the government to give the subsidy we request,” she said.

When asked how long the government should provide this diesel subsidy, Leong said it would be hard to say, as the local tourism industry is requesting both the diesel subsidy for tour buses and tour vans, as well as subsidy in the form of tax reliefs.

She indicated the ideal duration of this proposed diesel subsidy would depend on when the Iran war ends: “So we hope that this subsidy will continue another six months to nine months after the war stops.”

In the same press conference, MITA vice-president (transport) Logeswaran K. Sukumar said the diesel subsidies that the travel industry is seeking from the government would not even cover the full costs from the rising diesel prices, but would at least cover part of their fuel costs.

“We don’t ask for much from the government. But what can we do? We are the second biggest contributor of revenue to the country, it can’t be can’t even give us a little. At least give us 3,000 litres,” he said.

While saying that the rising fuel prices is part of a global crisis, he urged the government to not abandon the local tourism players whom he said are the “backbone” of tourism in Malaysia.

Malaysian Tourist Guides Council (MTGC) president Jimmy Leong said any impact of the Iran war on the local tourism industry would have a bigger “ripple effect” on the rest of the economy.

“So now we are asking the government to refocus its assistance on the tourism industry before it cannot sustain itself, collapses, and everyone in the trade suffers,” he said at the same press conference.

“When I said this is going to have a ripple effect, people outside the industry might not feel it yet, but as the war keeps escalating, oil prices are going to go up, fewer tourists will come to our shores — you will find that you will be suffering.

“Because we depend a lot — especially in cities — on tourists coming to our shores to spend their money,” he added.

He said the livelihoods of over 10,000 licensed tourist guides risk being affected, as they offer their services on tour buses.

"If the industry does not manage to survive this crisis, at least half of these guides will be greatly affected. So at this moment, before the situation worsens, we have to tackle the problem now," he said.

Malaysian Indian Tour & Travel Association (MITTA) deputy president Datuk A. Aruldas said the diesel subsidy sought by the local tourism industry is "not to make profit" but to "sustain before we close shop, before our coaches are parked".

"If the coaches don't move, the tour guides become jobless," he said, noting that this could affect thousands of families.

Aruldas said Malaysia's tour operators typically give quotations three to six months in advance, adding that tour groups arriving today would be paying prices based on quotations made last December or January.

This means operators have been absorbing increased costs since the war broke out on February 28, he said.

He said tour packages typically allocate 25 per cent of costs to transportation and 45 per cent to hotels, with the remainder covering tour guides, food, administration and other expenses, leaving little margin when costs rise.

He urged the government to provide temporary short-term aid of at least six months or until the end of the year to "stop the bleeding now" for the local travel industry.

He said this would allow operators time to adjust costs and secure new contracts for upcoming travel periods.

"This time at least let us survive for another six months, at least until the end of the year, and Visit Malaysia Year will also move a little more positively," he added.

He was referring to Visit Malaysia Year 2026, with the country targeting 47 million international visitor arrivals this year.

At the same press conference, MITA also announced a new price guide to help tour bus and van operators cope with diesel price hikes, allowing them to charge up to 80 per cent more.

The press conference was jointly held by MITA, MTGC, MITTA and the Malaysian Tour Van Drivers Association.