KUALA LUMPUR, April 2 (Xinhua) -- Malaysia's tourism sector is grappling with mounting operational pressures as rising fuel prices, fueled by Middle East tensions, cascade through the industry, a business group said on Thursday.
These disruptions pose new challenges to the sector, which operates on a long lead business model, Malaysian Tourism Federation (MTF)'s President Sri Ganesh Michiel said in a statement.
Travel packages are negotiated months in advance under binding contracts with international partners, leaving agencies unable to adjust prices when unexpected costs arise. Many rely on third-party bus, boat, and ferry operators, who themselves struggle to sustain operations amid rising fuel expenses, creating a domino effect across the tourism value chain.
The federation urged the government to implement immediate relief measures, including fuel subsidies for transport operators, temporary cost-relief mechanisms for travel agencies, and short-term stabilization policies.
It warned that failure to act could undermine Malaysia's tourism competitiveness, disrupt the broader ecosystem, and erode international confidence.
