Hoteliers in Sabah are grumbling increasingly loudly that tourists are canceling too many bookings in the wake of the Lahad Datu Standoff and the on-going mopping up operations by security forces. They worry that things may become a whole lot worse for the hospitality industry in the state before turning for the better, if at all, in the near future.
The state has some 25,000 hotel rooms to help the hospitality industry rake in some RM5.2 billion last year from nearly three million visitors. The forecast revenue for 2015, according to Sabah Tourism Board chairman Tengku Zainal Adlin, is RM15 billion on the high side. That amounts to a quarter of the RM60 billion per annum that Malaysia presently collects from tourism receipts.
Clearly, the travel industry is high income lifeblood for the Sabah economy which already suffers the drain of most of its resources and revenues to Putrajaya. Palm oil and the oil and gas sectors are other bright spots. Timber is a sunset industry.
Foreign missions in Malaysia, erring on the side of caution, have reportedly either extended previous Travel Advisories or issued new ones urging caution if travelling to eastern Sabah.
However, travellers may not make any distinction between the Sabah east and west coasts. They may not make any distinction either between Sabah and the rest of Borneo.
They fear being the target of kidnappings.