Sabah tourism competitiveness threatened by rising airfares

Rising airfares and fuel costs are threatening the competitiveness of Sabah’s tourism industry ahead of the ‘Visit Sabah Year 2027’ campaign. Mohd Azlan Saleh, Chairman of MATTA Sabah, warned that the narrowing price gap between domestic and regional flights could drive travelers to choose international destinations over local ones.

Indicative checks show that a round-trip economy flight from Kuala Lumpur to Kota Kinabalu costs approximately RM471, which is only RM16 less than a flight from Kuala Lumpur to Jakarta (RM487). Azlan noted that when the price difference is this minimal, consumers are likely to seek better value in countries like Indonesia, Thailand, or Vietnam.

In addition to flight costs, increasing fuel prices are placing financial pressure on local tourism operators, including those managing tour buses, vans, rental cars, boats, and resorts. There is a concern that these rising operational costs may eventually be passed on to tourists through higher package prices.