SANDAKAN: Sandakan Tourism Association (STAN) President, Teo Chee Kim, has called on the government to rethink about the hasty removal of diesel subsidies for all tour buses and vans once the targeted diesel subsidy programme (SKDS) kicks in next month in Sabah.
According to Teo, local tour buses and vans will not be eligible to apply for diesel subsidy under the SKDS scheme when it is implemented in July this year, as announced by the Ministry of Finance (MOF) earlier this week.
This has great repercussion to the very survival of the local tourism industry.
“One main reason cited for this exclusion is that there is no reason why the government should provide subsidy for tourists visiting the country. However, what the government fails to take into consideration is that in the tourism business, all tour operators receive and commit to forward bookings, usually 3 to 6 months ahead.
“This is very common especially for long haul tourists from Europe, America or Australia. They usually book their tour packages way in advance. For example, we already have European tourists made bookings for Selingan Turtle Island and Kinabatangan River cruises for 2027. All these bookings are transacted with current prices, and existing cost structure,” explained Teo.
He also said that the government is putting the local tourism industry on the edge for the hasty implementation of the SKDS scheme without full understanding of the nature of the business.”
“Let us be clear. STAN is not against the introduction of the SKDS scheme. But we are appealing to the government to at least provide the tourism sector a grace period of 3 to 6 months before the full implementation of the SKDS scheme.
“This will allow tour operators to adjust and publish revised rates accordingly to all their overseas agents,” he said.
Teo added that STAN has brought this matter up to the Member of Parliament for Sandakan, Vivian Wong, and she agrees that this matter needs to be brought up to MOF & Ministry of Tourism, Art and Culture for urgent attention and further deliberation.
“We have already seen substantial flight cancellations and a drop of nearly 20% in overseas tourist arrivals since March this year due to the conflict in Middle East.
“The implementation of this SKDS scheme so soon after its announcement give the industry no time to prepare for it and will further threaten the very survival of the industry,” he further explained.
