Holidaymakers traveling from Johor Bahru to Kuala Lumpur (KL) are now facing higher travel costs. Tour bus fees have risen by 10% following the exclusion of tour bus operators from Malaysia’s diesel subsidy program, a move that has significantly impacted the tourism industry.
Image: Star Car Sifu
Edwin Tay, chairman of the Malaysian Chinese Tourism Association (MCTA) Johor chapter, explained that this increase stems from the government’s decision to float diesel prices. As a result, the cost of transporting travelers from Johor Bahru to KL International Airport (KLIA) has surged by RM250 (approximately S$71) per trip, causing overall tour fees to rise by about 10%.
The journey from Johor Bahru to KLIA covers roughly 320 kilometers. Due to these changes, travel agencies under MCTA have requested customers who have already booked their travel packages to cover the additional costs. Those still in the planning stages will receive updated quotes reflecting the new prices.
Image: Raymond Manuel
Transport Minister Anthony Loke defended the exclusion, stating that the subsidy was intended for daily use vehicles and not for the tourism sector. However, Tay argued that this rationale is unfair since tour buses also serve local groups such as students on field trips and company employees, as well as participants in meetings, incentives, conferences, and exhibitions. He emphasized that the tourism industry should be included in the diesel subsidy program to avoid being sidelined.
Despite acknowledging a potential slight increase in tourist costs, Loke mentioned that this was manageable. He indicated that the Tourism, Arts and Culture Ministry would address possible subsidies for tour bus operators to ease their transition following the subsidy removal.
Image: Hiasan Pictures
The Malaysian Inbound Tourism Association has also appealed to the government, urging the inclusion of tour bus operators in the diesel subsidy program due to the substantial increase in operational costs. Starting June 10, the price of diesel in the peninsula has been floated to RM3.35 per liter from the previous RM2.15 per liter. The targeted diesel subsidy program continues to support 33 types of vehicles, including public transport and goods transportation, but excludes tour buses.
As travel expenses rise, holidaymakers and industry players alike will be feeling the impact of these policy changes, highlighting the ongoing debate over the allocation of government subsidies in Malaysia.
