Friday, June 13, 2008

No more fuel price increase, Malaysian PM assures

TOUR operators welcome prime minister Datuk Seri Abdullah Ahmad Badawi's assurance yesterday that there would be no more fuel price increase for the rest of the year.

The prime minister's announcement came in the wake of fuel price increase in Malaysia on June 4 as well as statements from the government that fuel prices would be reviewed monthly (TTG Daily News, June 6 and 9).

World Avenues executive director, Mr Ally Bhoonee, said this made it "safer" for agents to create packages and get their overseas counterparts to market them.

Borneo Adventure, which is unable to increase rates due to contracts already signed with clients, has to absorb the revenue loss from the fuel price increase. Operation manager Mr Emong Tinsang said any further increase this year would cause further loss of revenue.

"We need five to six months to negotiate the rates with overseas operators for the next contracting period which begins in March, but we are not able to forecast ahead what fuel prices will be like in 2009."

Mr Ally said some transport companies were taking advantage of the fuel price rise to increase their coach rental by more than 50 per cent. He feels tour operators and transport companies must work hand in hand to save the destination from losing out to competitors with lower operating costs.

Source : TTG
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