Kota Kinabalu: Sabah Tourism, Culture and Environment Minister Datuk Jafry Ariffin (pic) has urged the Federal Government to reconsider the implementation of the diesel subsidy policy for tourism operators in the State due to rising operating costs.
He said tourism operators, particularly those serving island and rural destinations, rely on diesel to operate tourist boats, generate electricity and sustain daily operations.
Jafry warned that without an immediate solution, many operators could face serious financial pressure, forcing them to reduce operations, retrench workers or close their businesses, similar to the impact experienced during the Covid-19 pandemic.
He said the tourism sector contributes about 12 per cent to Sabah's Gross Domestic Product, generates up to RM13.7 billion in annual revenue and supports about 387,600 jobs, representing more than 22 per cent of the State's workforce.
Jafry called on the Federal Government to introduce a fairer, more flexible and targeted diesel subsidy mechanism for eligible tourism operators, saying the State Government would continue to represent the concerns of industry players to ensure Sabah's tourism sector remains competitive and sustainable.
