KOTA KINABALU :The Sabah Tourism Federation (STF), Sabah Enhanced Travel Innovation Association (SETIA), Sabah Association of Tour and Travel Agents (SATTA), Sabah Tourist Association (STA), and Malaysia Budget Hotel Association (MyBHA) Sabah Chapter today issued a joint statement highlighting five pressing operational challenges affecting the state’s tourism industry.
The associations called for closer collaboration with relevant government agencies to ensure that Sabah is well-positioned for the highly anticipated Visit Sabah Year 2027 (VSY2027).
The joint statement was issued by Tonny Chew, president of the Sabah Tourism Federation; Christina Wahida Kong, chairman of the Sabah Enhanced Travel Innovation Association; Justin Chong, chairman of the Sabah Association of Tour and Travel Agents; Melanie Chu, chairman of the Sabah Tourist Association; and Harold Chung, chairman of the Malaysia Budget Hotel Association Sabah Chapter.
While the five associations acknowledged the efforts already being made by various agencies, they said early and coordinated action on several issues would be critical to sustaining traveller confidence and industry competitiveness in the lead-up to 2027.
Rising airfares on the KUL–BKI route:
Airfares on the Kuala Lumpur–Kota Kinabalu route, in both directions, have risen significantly in recent months.
If left unaddressed, the trend could discourage domestic and connecting international travel to Sabah at a time when the state is building momentum for VSY2027.
This could potentially affect visitor arrivals, tour bookings and the wider tourism supply chain.
The five associations proposed the introduction of Targeted Package Tour Subsidies (TPTS), channelled through the Sabah Ministry of Tourism, Culture and Environment (KePKAS) and made available exclusively to licensed tour agencies.
They said this targeted approach would help cushion the impact of higher airfares on package tours without broadly subsidising air travel. It would also ensure that support reached operators actively driving visitor arrivals to the state.
Water supply disruptions affecting Kota Kinabalu hotels:
The associations also expressed concern over ongoing water supply disruptions affecting the Kota Kinabalu city area, with at least 10 hotels recently reported to have experienced water outages.
The impact extends beyond guest inconvenience, affecting housekeeping and food and beverage operations while increasing the risk of negative reviews and cancellations.
The disruptions also undermine the destination’s readiness at a time when hospitality standards must be at their strongest ahead of VSY2027.
The associations called for closer coordination with Jabatan Air Sabah, Kota Kinabalu City Hall (DBKK) and other relevant authorities, particularly regarding advance notification to hoteliers whenever supply disruptions or shutdowns are scheduled.
In addition to timely notice, they hoped to see pre-booked standby water-tanker arrangements put in place to keep affected hotels operational during outages.
They also called for proper planning and scheduling of shutdowns and rectification works to minimise disruption during peak periods as the state prepares for VSY2027.
Weekly fuel price adjustments affecting transport operators:
The Government’s weekly fuel price announcements have had a tangible impact on van, bus and boat operators serving the tourism sector.
Rising and fluctuating fuel costs have left tour operators with little choice but to adjust their rates, increasing the overall cost of tour packages.
The associations said this was particularly concerning as neighbouring destinations were increasingly perceived as more affordable holiday options than Sabah.
This could affect the state’s competitiveness in the regional market.
The five associations renewed their earlier call for better long-term planning on fuel pricing and urged the Government to consider including licensed tourism transport operators in the Subsidised Diesel Control System (SKDS).
They noted that although tourism is not classified as a necessity industry, it remains a key economic pillar for Sabah. Tourism transport operators, they said, deserved equal consideration in fuel planning as the state geared up for VSY2027.
Rise of illegal “white van” operators:
The five associations also expressed concern over the growing prevalence of illegal and unlicensed “white van” operators across Sabah.
Demand for these unregistered services has increased as fares charged by licensed passenger van operators have risen.
The associations said white van operators were able to undercut the market by using budget or subsidised diesel intended for other purposes, including the reported use of the 400-litre BUDI Diesel allocation.
They said this had created an uneven playing field between licensed, compliant operators and illegal service providers, making it increasingly difficult for legitimate industry players to sustain their businesses.
Beyond the unfair competition, white van services operate without proper licensing or insurance coverage, posing a genuine safety risk to tourists and the travelling public.
The five associations called on the relevant authorities, including the Commercial Vehicle Licensing Board (LPKP), the Road Transport Department (JPJ) and other enforcement agencies, to intensify action against illegal van operations.
They also urged the authorities to address the diversion of subsidised diesel for unauthorised commercial use and support licensed operators, so that safe, insured and properly regulated transport would remain the more viable option for both operators and visitors ahead of VSY2027.
Unlicensed short-term rental accommodation:
The associations, including MyBHA Sabah Chapter, also drew attention to the continued proliferation of unlicensed short-term rental accommodation (STRA) across Sabah.
As Sabah works to attract more visitors for VSY2027, the associations said growth in visitor numbers must be matched by effective visitor protection and confidence.
They stressed that their position was not against short-term accommodation as a category, but against unlicensed accommodation operating outside the regulatory, safety and taxation frameworks that legitimate accommodation providers are required to follow.
Such operations, they said, created an unfair playing field for compliant providers and exposed guests to unmanaged risks.
The associations called for stronger enforcement against unlicensed STRA operators and closer coordination among the relevant licensing and local authorities to bring such accommodation within the proper regulatory framework.
This, they said, would help ensure that visitors staying in Sabah during VSY2027 were protected, regardless of the type of accommodation they chose.
A shared hope for VSY2027:
STF, SETIA, SATTA, STA and MyBHA Sabah Chapter said they hoped their observations would be received in the spirit in which they were intended , as a genuine wish to see Sabah’s tourism industry thrive in partnership with the Government and all relevant agencies.
The associations looked forward to continued dialogue and cooperation in the months ahead, so that Sabah could welcome Visit Sabah Year 2027 with confidence and be ready to provide every visitor with the safe and memorable experience for which the state is known.-pr/BNN
