Sabah Government Tackles Foreign Dominance in Semporna’s Tourism Industry

Semporna: This second article in a two-part series highlights the Sabah government's commitment to resolving issues affecting local tourism entrepreneurs in Semporna. Over the past few years, concerns have mounted over the growing dominance of foreign-controlled businesses in Semporna's lucrative tourism industry, with many local entrepreneurs claiming they have struggled to secure a fair share of the economic opportunities generated by one of Sabah's most popular tourist destinations.

According to BERNAMA News Agency, while the district continues to attract hundreds of thousands of visitors each year with its world-renowned islands and marine biodiversity, questions have increasingly been raised over how much of the industry's wealth ultimately benefits local communities. Against this backdrop, the Sabah government, through the state Ministry of Tourism, Culture and Environment, has stepped up efforts to strengthen governance of Semporna's tourism sector, tighten regulatory oversight, and ensure greater participation by local operators.

Sabah Tourism, Culture and Environment Minister Datuk Jafry Ariffin emphasized that the state government's policy is clear: tourism development in Semporna must ultimately benefit the local community. To realize this goal, a special multi-agency task force has been established to resolve issues affecting local tourism operators. Monitoring and enforcement have been intensified to ensure all tourism-related activities operate in a transparent, orderly, and lawful manner.

Datuk Seri Mohd Shafie Apdal, Member of Parliament for Semporna, called for quality investments in the district's tourism industry. He proposed a regularization exercise through joint ventures between foreign investors and local operators as the best approach to address foreign infiltration without harming tourist arrivals. He stressed that taking drastic measures, such as banning foreign investors, could negatively impact the tourism sector.

Chief Minister Datuk Seri Hajiji Noor described Semporna as the main driver of Sabah's blue economy and stressed the importance of generating large-scale economic benefits for local communities under the Sabah Maju Jaya strategic development plan. Hajiji highlighted the need for environmental sustainability and the role of local leaders in enforcing laws and protecting marine resources.

Among the law-abiding operators is Pe'an, a 51-year-old foreign dive master who has been in the tourism business in Semporna for over a decade. He operates in partnership with local entrepreneurs and maintains compliance with Malaysian regulations, proving that cooperation with local operators is not only possible but beneficial.

Semporna Bumiputera Tourism Operators Association deputy chairman Suffian Ahmad Kenajaan sees an urgent need to streamline the district's tourism management governance. He proposed several measures, including establishing a One-Stop Tourism Centre and providing clear investment guidelines.

Kerino Jalani, chairman of North Borneo Semporna Tourism Cooperative Bhd, urged the state government to support local operators in overcoming regulatory challenges and emphasized the potential contributions of accommodation operators to government revenues.

Semporna's tourism industry also supports many downstream economic activities, such as traditional handicrafts. Craft entrepreneur Naisan Tangki from Pulau Omadal highlighted tourism as an important source of livelihood alongside fishing, which remains a mainstay of the island economy.