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Kota Kinabalu: Chief Minister Datuk Seri Hajiji Noor said Sabah’s tourism sector will weather the impact of the ongoing Middle East conflict, pointing to sustained investor confidence and a pipeline of major hotel developments as evidence of the industry’s resilience.

“This crisis will fundamentally reshape how we operate. Every sector will be affected, which means we must adapt and innovate in our business practices. Yet, the future remains bright,” he said.

He said this at the official opening of Sheraton Kota Kinabalu, Monday, a project valued at more than RM300 million and one of several large hospitality investments currently underway across the State.

Hajiji said the Sabah Tourism Ministry is revising its strategies in response to the global uncertainty, with measures including new airline partnerships to improve connectivity, the development of premium tourism products, raised service standards and the hosting of high-value events.

“Through these efforts, we will position Sabah as both a premier holiday destination and a dynamic business hub,” he said.

Beyond Sheraton, Hajiji noted that several other hotel projects are at various stages of completion, among them Avani and Fairfield by Marriott, Grandis at The Peninsula in Kota Kinabalu, Club Med in Kuala Penyu, InterContinental in Papar and Wyndham in Semporna.

Together, these developments will add 2,740 rooms to the State’s existing inventory.

He said the economic ripple effects would extend well beyond the hotels themselves, benefiting local suppliers, restaurants and attractions through expanded supply chains and increased visitor spending.

“We are looking at hundreds of jobs, not just within the hotels themselves, but across supply chains, services and related businesses,” he said.

The opening of Sheraton Kota Kinabalu also coincides with preparations for Visit Malaysia Year 2026, with Hajiji confirming the momentum would carry through to end-2027 to support Visit Sabah Year 2027.

“It sends a clear, confident message that Sabah is open for business and ready to compete on the global stage,” he said.

Present were Deputy Chief Ministers Datuk Seri Dr Joachim Gunsalam, Datuk Seri Masidi Manjun and Datuk Ewon Benedick. Also present were TP Group Executive Chairman cum Managing Director Tan Sri Paul Lim and TP Group CEO Datuk Peter Chu, among others.