Sabah’s Rural Tourism Revenue Increases, Kiulu Plays Key Role

Published on May 8, 2025

By: Paramita Sarkar

Sabah’s rural tourism sector has witnessed significant growth in 2024, with Community-Based Tourism (CoBT) initiatives generating an impressive RM7 million in revenue, surpassing the RM6.7 million generated in 2023. The increase in revenue highlights the growing importance of rural tourism as a key contributor to the state’s economy. Chief Minister Datuk Seri Hajiji Haji Noor recently shared this achievement, emphasizing the crucial role CoBT plays in driving economic growth, especially in Sabah’s rural areas.

Kiulu’s Role in Sabah’s Rural Tourism Success

The Kiulu state constituency has emerged as one of the leading contributors to the growth of CoBT in Sabah. The area has become a prominent example of how rural communities can benefit from tourism initiatives. Kiulu has taken on a pioneering role in developing Community-Based Tourism, making it an important area for both the state’s economic expansion and its tourism sector.

During his speech at the 2025 Tuaran District Kaamatan Festival, held at the Kiulu Community Hall, Chief Minister Hajiji highlighted the ongoing success of Kiulu’s contributions to CoBT and emphasized that the region has become a key player in the development of rural tourism. He noted that CoBT is aligned with the state’s broader vision under the Hala Tuju Sabah Maju Jaya (SMJ) initiative, which aims to improve Sabah’s overall economic and social development.

Hajiji stated, “Tourism is one of the main pillars of the Hala Tuju Sabah Maju Jaya initiative, and state revenue from CoBT has increased. Therefore, I want to see CoBT actively developed due to its potential to expand and stimulate the economy in rural areas of the State.” His words reflect the Sabah government’s ongoing commitment to strengthening rural tourism and creating sustainable economic opportunities for local communities.

Growing Tourism in Sabah: A Key Economic Driver

The state’s tourism sector has played a crucial role in its economic development, contributing significantly to revenue generation, job creation, and cultural exchange. Sabah’s rural tourism, in particular, offers unique experiences that highlight the rich culture, traditions, and natural beauty of the state’s rural areas. The Chief Minister also mentioned that the state had already welcomed 923,709 tourist arrivals early in 2024, achieving 26 percent of the target of 3.5 million visitors for the year. This represents a positive start for the state’s tourism industry, which has set ambitious goals for the coming years.

Hajiji is confident that the 3.5 million tourist target for 2025 is not only achievable but can be surpassed, similar to the success of 2024 when the state exceeded its original target of 3 million visitors. This growth highlights the increasing demand for tourism in Sabah, both domestically and internationally, and reflects the effectiveness of government initiatives designed to promote tourism and related sectors.

The Chief Minister’s statements also underscore the importance of improving infrastructure in rural areas to support the growth of tourism and agriculture. According to Hajiji, “Good infrastructure not only brings comfort to the local population but also serves as a key attraction for both domestic and international tourists.” This commitment to infrastructure development is integral to creating an environment conducive to tourism, making it easier for visitors to access rural areas and explore all that Sabah has to offer.

MoUs with Universities and Taiwan Tourism Association to Strengthen CoBT

The Sabah government’s efforts to strengthen CoBT were further bolstered by recent developments involving local CoBT associations. Four key CoBT groups in the state— the Kiulu Tourism Association, the Tambunan Tourism Association, the Sabah Coffee Entrepreneurs Association, and the Tambatuon Village Women’s Community Association—have signed Memorandums of Understanding (MoUs) with several universities and a tourism association from Taiwan. These partnerships are expected to bring significant benefits in terms of knowledge transfer and community tourism empowerment.

Nick Johnson, Vice President of Commercial for The Landline Company, which collaborates with the government on tourism projects, highlighted the importance of such partnerships. “These collaborations are expected to bring major benefits in knowledge transfer and community tourism empowerment,” Johnson remarked. The partnerships will enable the local tourism operators to gain valuable insights into best practices and strategies for expanding CoBT while improving the quality of services provided to tourists.

The Chief Minister also stressed the potential for Kiulu and other rural areas to fully capitalize on their tourism and agricultural strengths, both of which are key drivers of the state’s economy. Kiulu, with its active involvement in CoBT, serves as a model for how rural regions can enhance their economic development through a combination of tourism and agriculture.

The First Community-Based Tourism Conference and Future Prospects

As part of ongoing efforts to promote CoBT and strengthen Sabah’s tourism sector, the first-ever Community-Based Tourism Conference will be organized in June 2025 in Kota Kinabalu. The conference is a strategic collaboration between the United Nations Development Programme (UNDP) and the Sabah Tourism Board. The event aims to bring together stakeholders from across the tourism and development sectors to discuss innovative strategies for advancing community-based tourism and empowering local communities. This conference is expected to play a significant role in further developing Sabah’s rural tourism sector and solidifying its position as a leading destination for sustainable tourism in Southeast Asia.

Chief Minister Hajiji expressed his optimism about the upcoming conference, noting, “The first-ever Community-Based Tourism Conference will be organised this June in Kota Kinabalu by the United Nations Development Programme (UNDP) in collaboration with the Sabah Tourism Board as a strategic move to further strengthen Sabah’s tourism sector.” This conference will serve as a platform for exchanging ideas and promoting best practices in the field of community-based tourism, offering opportunities for local operators to expand their networks and gain international exposure.

Development Projects and Infrastructure Support for Kiulu

During his visit to Kiulu, the Chief Minister also announced an allocation of RM1.1 million for various development projects in the sub-district. These projects will help to further improve the infrastructure and facilities in Kiulu, supporting the region’s growth as a tourist destination. Among the projects approved are the construction of a parking facility, a new road to Kampung Kitapol, and the development of a gravity-fed water supply system in Kampung Lopot.

“These developments are important for the continued progress of Kiulu,” said Hajiji. “Kiulu must continue to be developed, and the people’s aspirations for ongoing progress and well-being must be supported and fulfilled.” These infrastructure improvements will not only enhance the local community’s quality of life but also make Kiulu more accessible to tourists, further boosting its potential as a tourism hotspot.

Additionally, the Chief Minister took the opportunity to officially rename the Kiulu Community Hall as the OKK Rampas Community Hall, reflecting the importance of local heritage and community identity. This move is symbolic of the government’s efforts to strengthen the connection between tourism development and local cultural preservation.

A Sustainable Path Forward for Sabah

The government of Sabah remains committed to the sustainable development of the state’s tourism sector. The Chief Minister reiterated that the well-being of the people is always the state’s top priority. Sustainable development, economic growth, and environmental protection are all critical to ensuring the lasting prosperity and welfare of Sabah. With a focus on sustainable tourism practices, the government is taking proactive steps to ensure that the benefits of tourism are felt by all communities across the state, particularly in rural areas.

As the tourism industry continues to grow, Sabah’s rural communities are expected to see even greater benefits in terms of economic opportunities and quality of life. The success of CoBT initiatives in Kiulu and other regions proves that with the right support and development, rural tourism can be a powerful tool for economic diversification and community empowerment.