By WU VUIDE
KOTA KINABALU: Rising airfares and fuel costs are becoming major concerns for Sabah’s tourism industry ahead of Explore Sabah 2027.
Malaysian Association of Tour and Travel Agents (Matta) Sabah Chapter Immediate Past Chairman Mohd Azlan Saleh said the issues must be addressed to protect Sabah’s competitiveness.
“Tourists today assess the total cost of a holiday — from airfares and accommodation to food, transport and activities. If the overall cost is not competitive, they have many other choices in the region,” he said.
He said airfares between Kuala Lumpur and Kota Kinabalu were now almost on par with some nearby international destinations.
Based on an indicative comparison of economy-class return base fares, he said a Kuala Lumpur–Kota Kinabalu return flight was about RM471, compared with RM487 for Kuala Lumpur–Jakarta.
“The difference is only about RM16,” he said.
Azlan acknowledged that airfares varied according to travel dates, seasons, capacity, baggage and booking times.
However, he said the narrow price gap could influence consumers, particularly when they considered the total cost of a holiday.
“With an additional RM16, consumers could already consider travelling to Jakarta instead of Kota Kinabalu.
“For a family, the consideration is broader as they also compare hotel, food, ground transport and activity costs.
“If the overall cost of a holiday in Indonesia, Thailand or Vietnam is lower, it is not impossible that they will choose to travel overseas,” he said.
He said the Kuala Lumpur–Kota Kinabalu route was Sabah’s main air link with Peninsular Malaysia, serving tourists as well as families, students, workers and industry players.
Sharp fare increases during school holidays, festive periods and peak seasons therefore needed closer attention, he said.
“They could cause Sabah to lose its advantage as a domestic destination,” he warned.
Azlan said Explore Sabah 2027 would face competition not only from other Malaysian states but also destinations across ASEAN.
Neighbouring countries offer beaches, islands, culture, food and nature-based experiences, while some have greater flight capacity and cheaper tourism packages, he said.
“We want more tourists from Peninsular Malaysia to come to Sabah. But if Kuala Lumpur–Kota Kinabalu airfares are too high, they may feel it is more worthwhile to holiday in Thailand, Vietnam or Indonesia,” he said.
He warned that spending millions of ringgit promoting Explore Sabah 2027 could have limited impact if tourists found the cost of travelling to Sabah too high.
“Strong promotion must be supported by affordable air access. Otherwise, all the effort and expenditure on the campaign may not produce the expected results,” he said.
Azlan said rising fuel costs were another pressure on tourism operators.
“Tour buses, vans, rental cars, boats, land and sea transfers and resort operations all depend on petrol and diesel.
“If fuel costs continue to rise, industry players cannot absorb the increases indefinitely. Some may have to impose additional charges or factor the costs into package prices to keep their businesses operating.
“This is not about seeking excessive profits. It is about business sustainability,” he said.
He said, however, higher package prices could further weaken Sabah’s competitiveness against regional destinations.
Azlan urged the Government to consider targeted fuel assistance or subsidies for licensed tourism operators, particularly tour buses, vans and tourist boats.
He said any assistance should have clear conditions, be implemented transparently and monitored to prevent leakages.
He said its benefits should also be reflected in stable package prices so consumers could benefit.
Azlan said tourism was a key contributor to Sabah’s economy and should not be treated as a small sector.
According to the Department of Statistics Malaysia, Sabah’s tourism industry generated RM13.7 billion in 2024, accounting for 12 per cent of the state’s economy, compared with 11.7 per cent in 2023.
Domestic tourism consumption in Sabah reached RM12.1 billion, while the industry supported about 387,600 jobs.
Nationally, tourism generated RM291.9 billion, or 15.1 per cent of Malaysia’s GDP, in 2024 and supported about 3.5 million jobs.
Azlan said the impact of higher tourism costs would extend beyond large companies to travel agencies, tour guides, transport operators, hotels, restaurants, handicraft businesses and rural communities.
He proposed several measures, including a special committee involving relevant ministries, agencies, airlines, Sabah Tourism Board, airport authorities, tourism associations and licensed operators.
He also called for a fare monitoring system for the Kuala Lumpur–Kota Kinabalu route, covering average fares, seat capacity and peak-period increases.
“Flight capacity should also be increased during school holidays, festive periods and peak seasons to help prevent price spikes caused by high demand,” he said.
He further proposed that Explore Sabah 2027 be assessed not only by visitor arrivals, but also spending, length of stay, returns to local operators, employment and benefits to communities.
“The Government should continue engaging with industry players before implementing policies, rather than only after their effects are felt by the industry and consumers.
“Industry players have real data on the costs of buses, boats, transport, accommodation, resorts and packages. Use this data to find solutions that are practical, fair and effective.
“Competition today is not simply about who has the most beautiful destinations. It is also determined by air access, capacity, prices, facilities and the overall value received by tourists,” he said.
Azlan warned that failure to address airfare and fuel-cost pressures could see Sabah lose tourists, income, jobs and economic opportunities to regional competitors.
‘If the overall cost of a holiday in Indonesia, Thailand or Vietnam is lower, it is not impossible that they will choose to travel overseas’ – Azlan
