Sabah moves to cushion tourism sector as Middle East conflict cuts airline routes

KOTA KINABALU, April 29 — Sabah’s tourism sector is bracing for turbulence as the ongoing Middle East conflict begins to ripple through global travel, prompting airlines to rationalise routes and forcing the state to rethink its connectivity strategy.

State Tourism, Culture and Environment Minister Datuk Jafry Ariffin said airlines have cited profitability and operational concerns linked to the conflict as key reasons for the reduction of direct flights into Sabah, including routes to Kota Kinabalu and Tawau.

“Airlines do prioritise routes based on profitability, and with the current geopolitical situation, they are reviewing frequencies and passenger loads. These are among the reasons given for cutting back flights to Sabah,” he said during a question-and-answer session in the State Legislative Assembly.

He said that airlines represent a structural vulnerability for the state, with more than 90 per cent of tourist arrivals depending on air connectivity.

Jafry said that Sabah entered 2026 on a strong footing as international arrivals rose 17.7 per cent in the first two months of the year compared to the same period in 2025, signalling steady post-pandemic momentum.

However, the global landscape has since shifted, as the Middle East conflict has not only increased operating costs for airlines but also altered travel patterns, particularly for long-haul routes that Sabah relies on to draw higher-spending tourists.

Jafry said his ministry has begun recalibrating its strategy to cushion the impact by engaging with airlines and offering alternatives such as positioning Sabah as a “fly-through” destination — allowing travellers to transit through Kota Kinabalu en route to other regional destinations, potentially offsetting the loss of direct long-haul connectivity.

“As proposed by the Sri Tanjung assemblyman,we are considering options like fly-through arrangements in our engagements with airlines,” Jafry said.

The ministry has pivoted towards strengthening domestic and regional markets as a near-term buffer against global uncertainty.

Campaigns in collaboration with airlines and digital platforms such as Klook, Trip.com and Agoda are being intensified to stimulate local travel demand — a move aligned with federal efforts under Budget 2026 to encourage Malaysians to holiday within the country.

Early signs suggest this strategy is gaining traction. Participation in the Matta Fair in Kuala Lumpur last month generated nearly RM5 million in domestic tourism package sales, reinforcing Sabah’s appeal among local travellers.

Beyond that, the state is doubling down on more resilient regional markets in Southeast Asia and Northeast Asia, seen as less volatile compared to long-haul segments.

“The government is also leaning into event-based tourism — supporting festivals, cultural showcases and industry-led events — to boost visitor numbers and spending, particularly as spontaneous, short-haul travel becomes more prominent,” he said.

Rising fuel costs and broader logistical challenges are pushing up operating expenses, prompting the state to gather data and feedback to assess the scale of impact and consider targeted support measures.

Looking ahead to next year’s Visit Sabah 2027 campaign, Jafry said his ministry is in the midst of planning several short- and medium-term intervention measures to ensure the sustainability of the tourism sector.

“I also welcome the suggestion by the Honourable Member for N.69 to encourage domestic travel through hotel vouchers. This proposal will be brought to the attention of the Sabah Tourism Board as one of the alternative measures to support the industry,” he said.