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INITIATIVES to up the tourism value chain is very much resonant with CM Datuk Seri Hajiji’s economic transformation.

I am confident that Hajiji would welcome such initiative contributions towards his efforts to restructure the Sabah economy and to improve the income for Sabahans.

Tourism is already one of Sabah’s biggest economic sectors. A successful transformation to high value tourism together with promotion of MICE, this sector can quite easily expand by another 30% to 40% of its current GDP contribution.

Minister Jafry’s initiative to upscale Sabah’s tourism in the value chain is what is needed in Sabah.

Realising that one of the most urgent tasks for Sabah’s tourism is to upgrade the tourism value for Sabah, Jafry has spearheaded a shift from “volume-based” to “value-based tourism, quality over quantity.

The goal is no longer just about the number of arrivals but increasing the length of stay and the spending power of each visitor.

The Sabah Ministry of Tourism, Culture, and Environment (KePKAS) has been allocated RM174.45 million for 2026. This represents a 10.8% increase compared to the 2025 allocation of RM155.27 million.

Progress or rot. Unwise to rest our laurel. Such is the nature of tourism business. Almost every country, large or small, advanced or 3rd world, are eager to promote tourism. Reason is tourism can deliver economic benefits to their populations fast. Economic multipliers/enablers from Tourism can reach the population directly and extensively faster than most other sectors. 

Examples: From Grab drivers to airlines, doormen to hotel investors, farmers to restaurant owners.

Many countries, like Maldives, which have plenty of natural advantages, can go into tourism with substantial competitiveness advantages. Others like Singapore, have invested tens of billions in creating tourism products. Both have succeeded impressively. 

Sabah has some of the best natural comparative advantages. Sadly, Sabah tourism has stagnated. Sabah has achieved little real progress to upscale from mass, cheap tourism to high value tourism.

Such a situation cannot and should not be allowed to continue.

Soon, very soon, Sabah will face the unpleasantness of either progress or rot. Some reasons:

[1] Income for Sabahans in the tourism industry cannot match inflation. They are suffering from negative effective income.

[2] Many good Sabahans in tourism have migrated and will continue to do so, to other industries and/or seek their fortune elsewhere like Singapore and KL.

[3] Investors in tourism will not come as returns are insufficient for capital.

[4] The number of high value tourists, already small, will diminish cos Sabah’s tourism ecosystem can’t cater for them. They can’t see the value of their money in relationship to the price in Sabah, i.e. 5* price 3*service.

Achieving Quantum leap from quantity to quality is very tough but not impossible for Sabah. 

Throwing it away. Going for dirt cheap. That is the easiest way out. This is what Sabah has been doing for a long time. This low value tourism model has caught up with us.

This way is not the long-term solution.

It has been a long time since there has been a conscious drive to upscale the tourism value in Sabah. The only exception is Sabah’s entry in MICE.

For the sake of the 387,600 Sabahans working in tourism, the major tourism stakeholders like investors who have sunk in millions in hotels/resorts, their senior management and leaders of tourism NGOs must embrace the challenge of upscaling tourism value and co-operate with Jafry.

Negative mindset, someone else’s responsibility. Major tourism stakeholders must produce initiatives to upscale Sabah’s tourism value. 

From conversations with several tourism leaders/major players since my last article, it is clear. Their mindset is negative. With little exception, they complain about everything is wrong in tourism, nothing is right! 

But they have no solutions to poorly managed, highly unsatisfactory conditions in KKIA, illegal tourism operators and guides, illegal accommodation operators, Airbnb and huge plastic pollution, poor service, bad maintenance in 5* hotels and resorts. Problems in Semporna is the tip of the iceberg.

Major tourism stakeholders from hotel/resort owners and investors and their senior management, leaders of tourism organisations in the private sectors must proactively address these issues and produce solutions. It is in their utmost interest to go for higher value tourism.

Everyone can complain. Complaints are easy. Not taking responsibility, pushing the blame to others. All need no brain. The only problem is that Sabah’s low value tourism will persist and will never go away. Eventually, it will kill the tourism industry.

Major tourism stakeholders must exhibit positive leadership.

Why no response from tourism stakeholders to Jafry’s announcement of his wish to upscale the tourism value?

There has no public response or reaction from tourism leaders in the private sector. They, especially the owners of hotels/resorts, should be overjoyed at Jafry’s perceptiveness in wanting to upscale Sabah’s tourism value. They stand to benefit the most. 

If they have responded privately to Jafry, well and good. If they have not, then I would urge them to shed their negative mindset. It is their responsibility, above all else, their interest, as investors and leaders in the industry, to response positively to Jafry’s initiatives.

Revamp strategy to go for high value tourists.

When the cloud of negative mindset has been cleared, the tourism leaders can think of ideas that are out of the prevailing “low value tourism box”. The old promotion model must be revamped and upgraded. Sabah needs to shed the image of being a low cost, cheap destination must go.

Best to bear in mind this principle: High value tourism can attract low value tourists. High value tourists will shun low value tourism destination.

Jafry and Ministry of Tourism are facilitators. Tourism leaders must take the lead to help Jafry to help themselves. 

This is a common feature in all successful, high value tourism destination. Singapore is a good example.

“The Singapore tourism private sector is not just “active”—it is the primary engine driving the state’s transition toward Tourism 2040, a vision focused on high-value, sustainable, and tech-integrated travel.

The private sector’s role has shifted from being mere service providers to strategic co-investors alongside the Singapore Tourism Board (STB).”

Singapore, already the highest tourism value destination by far, will see the private sectors investing billions in new products [e.g.: MBS’s S$8 billion new extension], renovation with state-of-the-art technology, enhancing its human capacity to achieve its Tourism 2040.

Producing strategic policy options, and clear implementation guidelines.

In the 1990s, hotel/resort owners rallied around SIHA [Sabah International Hotel Association] to fight for open sky. SIHA gave a presentation to Tun M in the presence of the Sabah Cabinet. Then another presentation to NEAC in April 1999. Result: open sky policy was approved by Tun M. Now there are 138 international flights per week into KKIA and counting.

Once again, the owners of hotels/resorts, as the biggest investors in tourism, must take possession of leadership, with their senior managements and other tourism leaders to produce strategic policy options and clear implementation guidelines to upscale the value of tourism in Sabah.

Let it be very clear. If the owners don’t bother, don’t blame the Government cos they have failed in their role to safeguard their investments.

Strategic policy options and clear implementation guidelines for high tourism value should include, among others, the followings: 

[1] Rebranding Sabah as a destination for high value tourism and related promotion.

Sabah’s receipts per tourist and hotel rates are below of other destinations. Likewise, income for Sabahans working in this industry.

Apart from a couple of new hotels, Sabah tourism products are tired and in urgent need of renovation. There must be new products too.

[2] Attracting more investors for upscale tourism products and offer of pertinent incentives.

Sabah has plenty of lovely beaches [Paka and “Sabah’s Gold Coast from Tuaran to Kudat] that have not been developed. 

[3] Promotion of full-service airlines, private jets and super yachts to Sabah.

Big majority of tourists to Sabah travel by budget airlines. High value tourists will look for full service with business/first class. 

[4] Rectification of poor maintenance by some so-called 5* hotels/resorts.

Some are badly managed and to a certain extent, in disrepair. Giving a very poor image of Sabah.

[5] Upscale the food industry and outlets, especially restaurants for fine dining.

[6] Reduction/elimination illegal operators, guides, accommodation providers.

This can be done if the private sector players collaborate with the authorities on this. The blame game must stop. Such practices had been reduced with the collaboration of DBKK and other local authorities. 

[7] Enhancement of service level at all levels of the tourism industry.

[8] Development of MICE.

[9] Improvement of professionalism in safety and security.

[10] Collaboration with ECoS, Water Department.

[11] Monitoring of KKIA.

[12] Collaborate with DBKK for upgrade of KK as a high value tourism city. This is very important as KK is the largest aviation gateway to Borneo.

DBKK is key in moulding KK as an upscale tourism destination. I am confident that the Datuk Mayor, who has improved KK immensely would welcome the tourism leaders to work with him.

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express. If you have something to share, write to us at: Forum@dailyexpress.com.my