KOTA KINABALU: May 5, 2026
Deputy Chief Minister II and Finance Minister Datuk Seri Masidi Manjun has urged the Malaysian Association of Hotels (MAH) Sabah and Labuan and the Sabah Tourism Board (STB) to work together more strategically in aligning tourism marketing with current conditions.
He made the call as several hotels around Kota Kinabalu have been directly affected, with occupancy rates declining in recent times.
The situation stems from two main factors: global uncertainties caused by ongoing conflicts in the Middle East and shifting travel patterns, with tourists increasingly opting for Vietnam as an emerging destination.
The hospitality industry in Sabah is currently facing challenges following a drop in foreign tourist arrivals to the state capital.
This was conveyed by MAH Sabah and Labuan chairman Suresh Ramasamy during a courtesy visit with his delegation to Masidi’s office.
Masidi said there is a need to strengthen domestic tourism promotion, particularly by targeting high-potential markets in the Klang Valley, Penang and Johor Bahru.
He said there is significant potential to attract more high-income domestic tourists, who are largely concentrated in these areas, to help revitalise the state’s tourism industry.
Masidi said Sabah must be more proactive in developing new and unique tourism products to remain competitive against emerging alternative destinations in the region.
“With the right strategy and fresh product offerings, Sabah still has its own strengths to attract tourists, both domestic and international,” he said.
