Addressing Flight and Fuel Costs Crucial for Sabah’s Tourism Success 2027

KOTA KINABALU:  The rising flight fares, particularly for the Kuala Lumpur–Kota Kinabalu and Kota Kinabalu–Kuala Lumpur routes, alongside escalating fuel costs, are now major concerns for Sabah’s tourism industry. If these issues are not managed carefully and based on robust data, they could not only threaten Sabah’s competitiveness but also hinder the realisation of the Visit Sabah 2027 Campaign.

Sabah undoubtedly boasts natural beauty, islands, culture, wildlife, and world-class tourism attractions. However, these advantages alone are insufficient if the costs associated with travelling to Sabah and moving within the state become prohibitively expensive. Today’s travellers consider the total holiday expenditure—including flights, accommodation, food, transportation, and activities. If the overall costs are not competitive, they may opt for alternative destinations elsewhere in the region.

Mohd Azlan Saleh, the Immediate Past Chairman, MATTA Sabah Chapter said the most concerning development is that flight fares from Kuala Lumpur to Kota Kinabalu are now nearly on par with some neighbouring international destinations. Based on indicative return economy fares, flights from Kuala Lumpur to Kota Kinabalu are approximately RM471, while Kuala Lumpur to Jakarta costs around RM487. The difference is only about RM16.

"Flight prices naturally fluctuate depending on date, season, capacity, baggage allowance, and booking time. However, this comparison clearly shows that the price gap between domestic flights to Sabah and regional international flights is narrowing. With just an additional RM16, travellers are now considering trips to Jakarta instead of Kota Kinabalu."

"For families, the decision involves broader considerations, including hotel prices, meals, land transport, and activities. If the total holiday costs in Indonesia, Thailand, or Vietnam are lower, it is entirely possible they will choose to holiday abroad. The Kuala Lumpur–Kota Kinabalu and Kota Kinabalu–Kuala Lumpur routes are vital links between Sabah and Peninsular Malaysia. They are used not only by tourists but also by families, students, workers, civil servants, and industry players.

"Therefore, sudden fare hikes during school holidays, festive seasons, and peak periods cannot be taken lightly. Such increases could erode Sabah’s advantage as a domestic destination. It is not to suggest that all international destinations are always cheaper than Sabah, but when the fare differential becomes minimal, consumers will begin to question which destination offers better value for money. This is the real risk we face."

Explore Sabah 2027 does not only compete with other Malaysian states; it also directly competes with destinations across ASEAN, he said adding that neighbouring countries offer attractive beaches, islands, culture, cuisine, and natural experiences. Some of these competitors have larger flight capacities and lower-priced tourism packages.

"We want more travellers from Peninsular Malaysia to visit Sabah. However, if the KUL–BKI fares are too high, they may feel it is more worthwhile to holiday in Thailand, Vietnam, or Indonesia. There is no official ranking that places Sabah as the third or fourth choice, but from a market perspective, the risk is clear. When flight prices and package costs rise simultaneously, Sabah could fall out of favour for price-sensitive travellers."

"We do not want millions of ringgit spent on promoting Visit Sabah 2027 to be wasted if travellers choose other destinations because airfares are too high at the time of booking. Effective promotion must be supported by affordable flight access, he said adding that without this, all efforts and investments in this campaign may not yield the desired results.

In addition to flight fares, rising fuel costs are placing pressure on tourism operators. Tour buses, shuttle vans, car rentals, boats, land and sea transfers, and resort operations all depend on petrol and diesel. If fuel prices continue to climb, industry players will find it difficult to absorb these costs without limits. Some may be compelled to add surcharges or incorporate fuel costs into their package prices to sustain operations.

This is not about seeking excessive profit but ensuring business continuity. Nonetheless, we must also recognise that each price increase will impact Sabah’s competitiveness. Tourists will compare prices with Thailand, Vietnam, Indonesia, and other destinations offering similar experiences at lower costs.

For this reason, the government should consider targeted assistance or fuel subsidies for licensed tourism operators, especially for tour buses, vans, and tourist boats. Any aid must have clear conditions, be implemented transparently, and be monitored to prevent leakage. The benefits should also help stabilise package prices so consumers can enjoy the advantages.

"The tourism industry is not a minor sector to be overlooked. According to the Department of Statistics Malaysia, Sabah’s tourism sector generated RM13.7 billion in 2024, accounting for 12.0% of the state’s economy, up from 11.7% in 2023. Domestic tourism expenditure in Sabah reached RM12.1 billion, supporting approximately 387,600 jobs across the state."

Nationally, tourism contributed RM291.9 billion or 15.1% to Malaysia’s GDP in 2024. It also supported about 3.5 million jobs, representing 21.6% of total employment. These figures demonstrate that tourism is a major pillar of Sabah’s and Malaysia’s economy.

When this sector is affected, the repercussions are not limited to large companies. It also involves travel agencies, tour guides, bus and boat operators, hotels, resorts, restaurants, small traders, handicraft producers, and rural communities.

The government must maintain ongoing communication with industry players before implementing policies, not only after the effects are felt by the industry and consumers. Industry stakeholders possess real data on bus, boat, transport, accommodation, resort, and package costs. This data should be utilised to find practical, fair, and effective solutions, he stated.

"Sabah’s unique attractions and advantages are significant, but we must also recognise that neighbouring countries offer compelling tourism products. Today’s competition is not solely about who has the most beautiful destination; it is also about flight accessibility, capacity, pricing, facilities, and overall value."

According to him, if the issues of flight fares and fuel costs are addressed carefully, transparently, and based on solid data, Explore Sabah 2027 can become a major catalyst for the state’s economy. Conversely, neglecting these problems risks losing not only tourists but also revenue, jobs, and economic opportunities to regional competitors.