Kota Kinabalu: The Sabah Tourism Board (STB) on Friday met tourism players to discuss operational challenges arising from fuel supply constraints and subsidy access affecting the state tourism sector.
This was the first engagement chaired by its Chairman Datuk Joniston Bangkuai, who is also Assistant Minister to the Chief Minister, following the establishment of STB Crisis Response Unit, which aims to facilitate structured dialogue with industry stakeholders.
Joniston said the objective was to gather feedback from tourism players, and compile the issues and proposals raised for further deliberation with the Sabah Tourism, Culture and Environment Ministry and subsequently to the Ministry of Domestic Trade and Cost of Living.
“This is our first step, and next, we hope to facilitate engagement with Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali, together with industry players, in a follow-up session to allow further discussion on the consolidated feedback from the sector,” he said in a statement.
Meanwhile, tourism operators running island resorts, boat transfer services and inland eco-tourism operations were among those most affected by ongoing fuel supply and subsidy constraints, as highlighted during the stakeholder engagement session.
In the same statement, operators reliant on diesel for generators and daily boat transfers said repeated applications for fuel subsidies have been unsuccessful despite multiple submissions.
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They also called for a review of the current subsidised quota, noting that the 200-litre daily cap for boat usage does not reflect actual operational needs in certain areas.
In destinations such as Semporna, a single boat transfer can take between 40 minutes to an hour, which is significantly longer than in other locations, resulting in higher daily fuel consumption.
Those operating lodges and river cruises in areas like Kinabatangan also highlighted similar concerns over diesel supply shortages and quota limitations, with some operators beginning to scale down on activities.
Participants also raised the need for the Domestic Trade and Cost of Living Ministry to consider operational realities in island areas, including an example from Selingan Turtle Island where an operator extends fuel support for generators to stationed security personnel without charge, increasing operational burden.
Several operators said they are currently absorbing higher fuel costs to honour existing bookings made before the recent price increases, limiting their ability to adjust package pricing.
A hotel representative also sought clarification on whether fuel subsidies could be extended to city-based hotels, particularly for operational uses such as laundry boilers, following the recent electricity tariff increase.
Among the suggestions put forward were for relevant agencies to review data on registered tourism boats in Sabah to better assess actual fuel requirements, as well as to explore broader financial measures.
These include potential engagement with the Ministry of Finance on industry support mechanisms similar to those introduced during the Covid-19 period, and discussions with financial institutions on possible loan moratoriums.
