Kuala lumpur: The country's tourism sector, which is currently facing operational cost pressures following the rise in global fuel prices, has prompted some travel agencies to readjust their package prices. Senior Lecturer at the Faculty of Hotel and Tourism Management, Universiti Teknologi MARA (UiTM), Associate Professor Dr. Faiz Izwan Anuar, highlighted that fuel costs are among the main burdens for the sector, accounting for about 30 to 40 per cent of the overall operating costs of travel agencies.
According to BERNAMA News Agency, Dr. Faiz Izwan explained that rising fuel costs are leading to shrinking profit margins and subsequent price increases in tourism industry products. Although many tourists are eager to travel, the pressure from the global energy crisis may result in some postponing their travel plans. However, those who have already made early bookings for hotels and transportation are likely to proceed with their plans.
On the implementation of targeted fuel subsidies by the government, Dr. Faiz Izwan stated that while the measure is helpful, it is only a short-term solution. He suggested that industry players should begin shifting towards more efficient models to reduce reliance on fossil fuels.
Meanwhile, Dr. Fazil Khan Abdul Kadir, vice-president (Air Transportation) of the Malaysian Association of Tour and Travel Agents (MATTA), noted the burden of cost increases on industry players. He mentioned that the cost of a full tank of diesel for a tour bus has risen significantly, impacting the industry. Consequently, these increased costs are being passed on to consumers, resulting in price adjustments of around 20 per cent depending on the package type. Despite this, feedback from tourists has been positive, as they understand the current situation.
Dr. Fazil Khan also observed a positive impact on the domestic tourism industry, with many locals opting for destinations within the country instead of traveling abroad. He highlighted increased domestic microeconomic activity and the success of recent events such as the MATTA Fair. Additionally, he urged the public to be cautious of unreasonably low travel package offers on social media and to engage with registered travel companies to avoid potential losses.