Rising fuel prices already affecting Sabah tourism sector, says Jafry

KOTA KINABALU (March 28): Sabah’s tourism sector is already feeling the impact of rising fuel prices triggered by the ongoing conflict in West Asia, with connectivity and transportation among the most affected areas, said state Tourism, Culture and Environment Minister Datuk Jafry Ariffin.

He said the situation, largely driven by global oil supply disruptions, has directly increased operational costs for industry players, particularly those reliant on transport services.

“Sabah’s tourism sector depends heavily on connectivity and fuel is central to transportation. Inevitably, our operators are feeling the strain,” he said when asked on the issue, at the State-level Hari Raya Aidilfitri open house at the Sabah International Convention Centre (SICC), on Saturday.

Jafry noted, however, that the state government is awaiting further direction and intervention from the federal government.

He said Prime Minister Datuk Seri Anwar Ibrahim is expected to convene a meeting with Menteri Besars and Chief Ministers to deliberate on the next course of action, amid growing concerns over the broader economic impact.

“We anticipate a significant effect as this involves transportation across the board — boats, land transport and distribution within the tourism supply chain. This is the reality we are facing now,” he said.

Jafry added that the effects are already becoming evident, with operators of boats, buses and other transport services having little choice but to adjust their prices in line with government-mandated fuel rates.

He expressed hope that the situation would not escalate into a crisis similar to the Covid-19 pandemic, which had severely disrupted the tourism industry.

“I advise industry players to remain calm and practise prudent spending,” he said.

He stressed that the current challenges are not unique to Sabah, noting that countries around the world are experiencing similar pressures due to global economic conditions.

On possible state-level intervention, Jafry said his ministry stands ready to provide the necessary data and input for discussions with the state government.

“The ministry is prepared to share all relevant information to support any intervention measures addressing this issue,” he added.