Rising airfares could undermine Visit Sabah 2027 tourism push, says former state Matta chief

KOTA KINABALU, Sept 3 — The government should consider targeted assistance or subsidies to address rising airfares and fuel costs that could undermine Sabah’s tourism competitiveness ahead of Visit Sabah 2027, said former Malaysian Association of Tour and Travel Agents (Matta) Sabah chairman Mohd Azlan Saleh Abd Salam.

He said high travel costs could prompt tourists to choose other destinations in the region offering more competitive prices, particularly as Sabah prepares to ramp up its tourism promotion.

“Based on indicative checks, the basic economy-class return fare from Kuala Lumpur to Kota Kinabalu is around RM471, while Kuala Lumpur-Jakarta is around RM487.

“This small difference is causing consumers to start comparing destinations that offer better value,” he said in a statement today.

Azlan said the issue deserved particular attention during school holidays, festive periods and peak travel seasons, when airfares are among the key factors influencing tourists’ choice of destination.

He said rising petrol and diesel costs were also putting pressure on tourism operators, including tour bus, van and boat operators.

“Operators cannot absorb rising operating costs indefinitely, and these costs may eventually be passed on to consumers through higher package prices.

“The government should consider targeted fuel assistance or subsidies for licensed tourism operators, particularly tour buses, vans and tourist boats,” he said.

He said any assistance should be implemented transparently and conditionally, with proper monitoring to ensure the benefits were passed on through more stable tourism package prices.

Azlan also warned that Sabah was competing not only with other destinations in Malaysia but also with Indonesia, Thailand and Vietnam.

“Strong promotion needs to be supported by sufficient and affordable air connectivity. We must not allow the major investment in Visit Sabah 2027 to fall short of its intended results because tourists choose other destinations due to high travel costs,” he said.

Tourism is a major income earner and economic driver for Sabah, generating RM13.7 billion in 2024, equivalent to 12 per cent of the state’s economy, and supporting about 387,600 jobs, according to Azlan.

Azlan urged the government to continue engaging industry players and use actual tourism-sector data when formulating measures to address airfares and operating costs.

“Competition today is not only about the beauty of a destination, but also air connectivity, prices, facilities and the overall value offered to tourists.

“If the issues of airfares and fuel costs are addressed promptly, Visit Sabah 2027 could become an important catalyst for the state’s economic growth,” he said.

Domestic travel also hurting

Aside from tourism, high airfares are also increasingly affecting Sabahans and other Malaysians travelling between Sabah and Peninsular Malaysia.

Sabah Youth, Sports Development and Creative Economy Minister Datuk Nizam Abu Bakar Titingan was recently reported as saying that the state government was seeking federal intervention following reports that one-way fares from Tawau to Kuala Lumpur had reached as much as RM1,000, particularly affecting students studying in the peninsula.

He urged the Transport Ministry to intervene and ensure students were not affected by exorbitant fares.

The impact of high airfares is also being felt by families who need to travel between Sabah and the peninsula for work and family commitments.

In June, it was reported that Md Suhaimi Sapiee, a 48-year-old commissioner for oaths, was unable to return to Selangor to attend his sister’s funeral because of the high cost of air travel.

He said airfares of more than RM1,000 per person also meant that only one of his two children studying in Peninsular Malaysia could return to Kota Kinabalu during their recent semester break.

Sabahans working in West Malaysia also often take to social media to lament the high cost of flights, which prevents them from returning home frequently during festive periods to see their families, while the reduced frequency of flights also means a potential loss of business for many.

Students who can utilise the FlySiswa subsidy programme say it helps ease the cost of flights to Kota Kinabalu, but their families may still be unable to visit them for graduation because of high airfares.

The combination of rising fares and operating costs has therefore emerged as an issue affecting both Sabah’s tourism ambitions and the ability of Sabahans to maintain regular links with Peninsular Malaysia.

For the tourism industry, Azlan said the challenge was to ensure that efforts to promote Sabah as a destination were matched by affordable and accessible air connectivity.