The Federation acknowledges the recent engagement efforts by the Ministry of Tourism, Arts and Culture (MOTAC) and expresses its appreciation for the Ministry’s proactive approach in consulting industry stakeholders. Such engagement is described as a crucial and commendable step towards understanding the real challenges faced on the ground.
However, MTF emphasises that while engagement and dialogue are important, action alone is not sufficient; what matters most is the outcome. The industry urgently requires effective solutions that deliver tangible results, not prolonged discussions without timely implementation.
Understanding the Structural Challenges
MTF highlights that the travel industry operates on a long-lead business model. Travel packages are designed, negotiated, and sold months in advance, with binding contracts signed between local travel agencies and their international counterparts. These agreements set prices ahead of time, leaving no flexibility to adjust rates when unforeseen cost increases arise.
Tourists, having purchased these packages well before their travel dates, are protected under these agreements. As a result, travel agencies are unable to pass on additional costs, particularly those arising from fuel price increases, and are instead forced to absorb them.
This challenge is further compounded by the fact that many travel agencies do not own transportation assets. They rely heavily on third-party providers, including tour bus operators as well as boat and ferry services, which are essential for island and coastal tourism. Transport operators are equally impacted by rising fuel costs and cannot sustain operations at a loss. This has led to unavoidable rate increases, creating a cascading financial burden across the tourism value chain.
Urgent Call for Relief Measures
In light of these challenges, MTF calls for the Government to implement immediate and targeted relief measures, including fuel subsidies or financial assistance for tourism transport operators, including buses, boats, and ferries; temporary cost-relief mechanisms to support travel agencies bound by contracts; short-term stabilisation policies to prevent disruptions across the tourism ecosystem; and a coordinated cross-ministerial approach to ensure timely and effective intervention.
Need for Deeper Engagement and Faster Response
MTF stresses that both KPDN and MOF must urgently engage directly with industry stakeholders to gain a deeper understanding of the operational realities faced by the sector. MTF notes that the delay in implementing assistance measures reflects a gap in awareness and urgency, which must be addressed immediately. Without proper understanding, policies risk being misaligned and ineffective.
“Engagement is a step in the right direction, but it must quickly translate into decisive action. More importantly, those actions must produce results that truly alleviate the burden on the industry.”
Safeguarding the Future of the Industry
The tourism industry is a critical contributor to Malaysia’s economy, supporting a wide network of businesses and employment opportunities. The current cost pressures, if left unresolved, may lead to long-term structural damage, reduced competitiveness, and loss of confidence among international partners.
MTF reiterates that the entire tourism ecosystem is interconnected, and challenges faced by transport operators and travel agencies will inevitably impact the broader industry. MTF calls on the Government to move beyond acknowledgement and consultation towards swift implementation of impactful measures.
“Action is important, but results are what truly matter. The industry needs solutions that work, support that reaches the ground, and policies that make a real difference. The time to act is now, and the results must follow without delay.”
MTF remains committed to working collaboratively with all Ministries and stakeholders to ensure the sustainability, resilience, and continued growth of Malaysia’s tourism industry.
