Matta seeks diesel subsidies for licensed tourism vehicles in Budget 2027
PETALING JAYA: The Malaysian Association of Tour and Travel Agents (Matta) hopes to have licensed tourism vehicles included in the diesel subsidy mechanism under Budget 2027, saying the move would help contain operating costs and keep travel fares competitive.
Its president Nigel Wong said tourism buses and vans were an essential part of the infrastructure for the industry, serving both domestic and international travellers.
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“Tourism buses and vans are not merely commercial vehicles. They are an essential part of Malaysia’s tourism infrastructure and directly support domestic and international travellers,” he told theSun.
He added that licensed tourism vehicles should be given appropriate access to targeted diesel support, subject to proper verification and controls.
“This would help operators manage rising operating costs without transferring the full burden to passengers through higher fares.”
Wong said the measure would also support the competitiveness of Malaysian tour packages and prevent higher transport costs from reducing domestic travel demand or making Malaysia less competitive for international visitors.
Beyond transport costs, Matta is seeking targeted tax incentives to encourage tour operators to invest more actively in overseas markets to promote Malaysia as a tourism destination.
Wong said enhanced tax deductions should cover qualifying expenditure on overseas marketing, trade fairs, roadshows, sales missions, digital campaigns and business-tobusiness activities that directly generate inbound tourism.
He added that the incentives should be practical and accessible to licensed travel agencies and tour operators, particularly small and medium-sized enterprises (SME).
“The objective is to encourage the industry to develop higher-value and longer-stay markets, creating a stronger economic impact across accommodation, transport, attractions, retail and other tourism-related businesses.”
He also said Budget 2027 should prioritise tourism infrastructure that directly improves the visitor experience and generates economic activity for local communities.
Wong said this includes upgrading tourism attractions, accessibility, connectivity, public facilities, tourist signage, transport links and digital infrastructure.
He added that greater attention should also be given to destinations beyond the major tourism gateways, including those with attractions that would make them spend more and stay longer.
“Better connectivity and facilities in secondary cities, rural destinations, islands and emerging tourism areas could encourage visitors to stay longer and spend across a wider geographical area.”
He also said a stronger and more strategically targeted tourism promotion allocation could make a measurable difference to Malaysia’s visitor numbers, provided it was accompanied by clear market strategies and measurable outcomes.
Wong said greater investment should be directed at high-potential international markets through joint campaigns involving Tourism Malaysia, airlines, state tourism authorities and travel industry operators.
He added that funding should support overseas roadshows, trade engagements, digital marketing, destination campaigns and incentives for international tour operators to include Malaysia in their programmes.
However, he said the success of tourism promotion should not be measured only by arrivals.
“We should measure success not simply by arrivals, but by visitor spending, length of stay, geographical dispersal and the number of international tourists travelling through Malaysian travel agencies.”
He said this would allow the government to assess the actual economic contribution generated by tourism promotion.
For the wider tourism industry, Matta calls for Budget 2027 to provide a comprehensive support framework covering taxation, transport, financing, promotion and industry digitalisation.
Among its proposals are targeted tourism tax incentives, support for licensed tourism transport operators, appropriate tax relief for tourism vehicles, stronger tourism promotion funding and greater assistance for SME to adopt artificial intelligence and digital technologies.
At the same time, Wong said affordability for Malaysians should remain an important consideration.
“Supporting tourism businesses does not necessarily mean increasing costs for consumers. If the government could reduce some of the structural operating costs, operators would be better positioned to maintain competitive package prices.
“Matta’s position is that quality should take precedence over quantity. Budget 2027 should help Malaysia attract higher-value visitors, encourage longer stays and greater spending, while ensuring that Malaysians continue to have access to affordable domestic travel.”
