TOUR bus operators want to be ready when more visitors come to Malaysia, now that international tourism is allowed, but are facing a lack of buses and drivers.

Having had almost no income for the last two years of the Covid epidemic, many have cash-flow problems and lack of funds to restart business, which include repairing buses and renewing vehicle insurance, several tour bus operators said.

Prior to the pandemic two years ago, there were about 9,000 coaches and minibuses in Peninsular Malaysia, said Steven Chong, the president of the Peninsular Malaysia Tourist Bus Operators Association.

But after some companies closed shop and sold the vehicles, there are about 6,000 left, of which 30% or less than 2,000 are in active service.

Tour bus companies had been hoping for a big break with Visit Malaysia Year 2020, but that was the year Covid-19 struck.

Since then, many operators have been unable to repay loans taken to buy the vehicles, which were towed away and are sitting idle at yards and depots, some waiting to be auctioned.

Chong said it costs more than RM10,000 to put one bus back in service. Vehicle insurance costs between RM6,000 and RM9,000 for one year, depending on the bus’ age. Another RM500 is needed per bus for computerised vehicle inspection at Puspakom. There are still maintenance costs, spare parts and tyres that add to the expenses.

“The tourism industry has not yet fully recovered. What will really help is if large Chinese tour groups return. Otherwise, local tourism cannot support the monthly expenses of a tour bus company,” Chong said.

Currently, since borders reopened on May 1, about 50% of active tour bus companies are handling foreign tourists groups mixed with a few locals. Bus capacity, however, is not filled.

Bus rental for these groups is charged at RM1,000 a day in order to cover basic expenses, such as petrol and salaries, he added.

Another problem is a shortage of drivers, Chong said.

“During the pandemic, many bus companies laid off drivers, and now these drivers have switched to other fields.

“Association member companies collectively need at least 6,000 drivers. So far, many bus companies have not been able to hire drivers,” said Chong.

Bus operator Moganasundar Dasshan, who owns Sun Asia Transtour Sdn Bhd, said he was re-starting business slowly with just two buses first.

He spent RM9,800 to buy one and RM11,000 for the other. These two buses are transporting tour groups to Singapore and Thailand, and the income is barely able to keep him afloat.

“I hope more tourists will come. Otherwise I don’t know if I can sustain the business.”

Moganasundar said he has had to slash rental rates to as low as RM700 a day, in order to get business.

Merry World Managing Director Ellen Lee was able to keep all her drivers during the pandemic by pivoting quickly to use her vehicles for other purposes, such as transport to vaccination centres, and was thus able to pay her drivers a basic salary.

Her company has 15 minibuses, while the remainder are 30-seater buses and VIP cars. She said the pandemic has caused those seeking group travel transport to choose smaller vehicles.

“Since the country’s borders reopened, we have been servicing heads and staff of multinational companies who came to Malaysia for various meetings and were able to develop a ‘luxury vehicle transfer service’,” Lee said.

Costs, however, are increasing due to the price of vehicle parts and the RM1,500 minimum wage.

“Costs have increased by 30% to 40% compared with pre-pandemic, but we are trying not to raise prices too high so as to attract customers.

“We’re not really making any money, we’re just about able to break even, and hope we can hold on until more tour groups arrive,” said Lee.

Malaysia Inbound Chinese Association deputy president Dr Cindy Seow said the shortage of buses and drivers have led to travel agencies coordinating with each other so as to “share” buses and drivers available.

Clients so far have been tourists coming in from other Southeast Asian countries, as well as those attending conferences, or companies holding group tours for their staff.

Tourist arrival numbers are still low when compared with pre-Covid, but the shortage of tour buses is felt, she said.

“Travel agencies help each other by ‘lending’ a bus when one has a group to transport but cannot find a bus.”

Seow expects to see higher tour group numbers in July and August, and believes demand for tour buses will increase at that time.

This month, local travel agencies handled 2,000 visitors from Vietnam in different groups.

“We (agents) had to help each other with bus arrangements due to the shortage,” Seow said. – June 16, 2022.