Rising airfares pose challenge to tourism industry

KOTA KINABALU: April 27, 2026

Airfares

The state government is taking steps to cushion the impact of rising air transportation costs, which could affect international tourism and Sabah’s tourism supply chain.

Tourism, Culture and Environment Minister Datuk Jafry Ariffin said global conflicts and higher airfares are creating direct challenges for the state’s tourism industry, which relies heavily on international arrivals and air connectivity.

Impact

Responding to a question from Sri Tanjung assemblyman Justin Wong Yung Bin during the State Legislative Assembly sitting, he said several implications have been identified, including higher ticket prices due to rising fuel costs, changes in flight routes, reduced flight frequencies, weaker travel sentiment, and postponement or cancellation of travel plans.

Strategy

Jafry said the ministry is focused on ensuring the continuity and sustainability of the state’s tourism supply chain by easing pressures faced by industry players.

Support

He said Sabah Tourism Board is planning targeted support and incentives, while intensifying strategic marketing efforts to sustain demand and maintain air connectivity.

Markets

Efforts will include strengthening domestic and regional markets as a buffer against uncertainties in long-haul travel.

Domestic tourism campaigns will be intensified to maintain industry stability should international arrivals decline.

The ministry is also focusing on North Asian and Southeast Asian markets, particularly China, South Korea and Japan, which are less affected by global airspace disruptions.

Positioning

Sabah is being promoted as a premium tourism destination to attract higher-spending visitors who are less sensitive to rising travel costs.

Engagement

Jafry said the ministry held engagement sessions with tourism associations, airlines and accommodation operators on March 19 and 31 to gather feedback and align strategies.

A further engagement session is scheduled on April 24 to address diesel supply issues faced by tourism operators.

Resilience

He said the ministry remains committed to ensuring the tourism industry remains resilient and sustainable, while continuing to support industry players and contributing to the state’s economic growth.

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