GEORGE TOWN (June 16, 2008): More than 90 tour operators in Penang have closed down since last year due to conditions imposed by the Tourism Ministry which they claim have been very restrictive.
MATTA Penang vice-chairman Johari Shafie said today the crisis has worsened due to the recent fuel price hikes which has taken a toll on inbound tourism.
"Business in the tourism industry has been demoralised by the fuel price hikes," he said.
"If conditions continue to worsen, the operators would be left with no other option but to shut down or go on strike to show their dissatisfaction with the (federal) government's inaction, he added.
Johari said the Tourism Ministry had for example imposed limitations on the maximum age of coaches to 13 years, and hire-and-drive cars and limousines to between five and seven years only.
"It was very difficult for operators to regain their vehicle investments costing about RM500,000 to RM1 million in such short periods of time. We are trying very hard to sustain the tourism business but there is really nothing we can do when it comes to the recent fuel price hikes.
"We are not allowed to increase our current prices as that would breach the contracts made with our foreign agents," he added.
Johari said the fuel price hikes caused the travel market to be stagnant and uncertain, with no new policies announced by the Tourism Ministry to help improve conditions afflicting travel operators.
There are now only 176 members remaining in MATTA Penang, he said.
"We hope the federal government will be considerate and act fast by giving immediate subsidy for vehicles such as tour coaches and limousines," said Johari.
Diana Chin
Sun Online
16/06/08
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