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Sabah Tourism Revenue 2026 — RM8.74B Breakdown

Q: How does Sabah's RM8.74B tourism revenue compare to Langkawi or Penang?

Sabah's RM8.74B (2025) is lower than Penang (~RM12–14B estimated) but comparable to or slightly above Langkawi (~RM7–8B). However, Sabah is growing faster — tourism arrivals grew 20.8% YoY while Penang grew 8–10%. In terms of revenue per visitor, Sabah (RM2,306/visitor) exceeds both, indicating higher-spending tourists.

Q: What are tourists spending most on in Sabah?

Accommodation (32%) is the largest category, followed by F&B (25%) and activities (20%). Accommodation includes hotels, resorts, and homestays. F&B covers all dining. Activities include Mount Kinabalu climbs, Sipadan diving, river safaris, tours, and entry fees. Shopping (13%) and local transport (10%) round out the breakdown. Luxury travelers spend 40%+ on accommodation; budget travelers focus on activities.

Q: How can Sabah increase revenue per visitor?

Strategic opportunities: (1) Expand luxury resort supply (5-star resorts command 3–5x the rates of 3-star hotels); (2) Develop premium adventure packages (e.g., private Mt Kinabalu climbs, exclusive dive charters); (3) Grow MICE tourism (conferences, weddings, incentives generate 2–3x spending); (4) Extend average stay through multi-destination packages; (5) Increase F&B prices via fine dining and cultural dining experiences.

Q: What is MICE tourism and how much does it contribute?

MICE = Meetings, Incentives, Conferences, Exhibitions. MICE travelers spend 2–3x more than leisure tourists (RM6,000–8,000 per person vs RM2,306). Sabah is positioning itself as a MICE destination with The Nexus resort conferences and KK city facilities. MICE is estimated to account for 5–8% of tourism arrivals but 12–15% of revenue. Growing MICE is a key strategic priority for 2026–2030.

Q: Do eco-tourism and cultural tourism command premium pricing?

Yes — strongly. Eco-tourism experiences (Danum Valley, Kinabatangan, Tun Sakaran Marine Park) attract high-spending tourists willing to pay RM400–800/day for guided experiences. Cultural tourism (Kadazan homestays, indigenous village tours) commands RM200–400/day premiums. These segments show the highest growth (25%+ annually) and highest satisfaction rates. Expanding eco and cultural tourism is critical for sustainable revenue growth.

Q: What employment does tourism generate in Sabah?

Tourism employs 387,600 people in Sabah (2024 DOSM), or ~10% of the workforce. Employment is spread across accommodation (+5.6% growth), food services (+6.2%), retail (+8.3%), and transport. Average wage in tourism is ~RM2,200–2,500/month, slightly below state average. Job creation has accelerated post-COVID: +6.9% from 2023–2024.

Last updated: 11 April 2026

Night market stall vendors serving tourists, shoppers browsing colorful goods

ℹ️ The quick answer

Sabah generated RM8.74 billion in tourism revenue in 2025, an increase of 20% year-over-year. The average spend per visitor is RM2,306. Accommodation (32%), food and beverage (25%), and activities (20%) account for 77% of spending. International visitors spend RM3,800 per trip (3x more than domestic visitors). Tourism now represents 12% of Sabah\u2019s GDP and employs 387,600 people.

💰

RM8.74B

Total Revenue 2025

↑ +20% YoY

💵

RM2,306

Avg Spend/Visitor

per person

🌍

RM3,800

International Spend

↑ avg per trip

🇲🇾

RM1,200

Domestic Spend

avg per trip

📊

12%

GDP Contribution

Sabah economy

👨‍💼

387.6K

Tourism Jobs

employed

Tourism Revenue Growth 2018–2025

Sabah’s tourism revenue crashed 78% in 2020, bottomed in 2021, and fully recovered by 2025 — now exceeding pre-pandemic levels.

Source: Sabah Tourism Board & DOSM

Revenue Overview

Sabah\u2019s tourism revenue of RM8.74 billion in 2025 represents full recovery and growth beyond pre-pandemic levels. The 20% year-over-year increase reflects both higher visitor volume (3.79 million, +20.8% vs 2024) and improved spending per visitor (RM2,306, +1.3% vs 2024). This combination signals both recovery momentum and improving destination premium positioning.

The revenue figure captures direct tourism receipts reported by the Sabah Tourism Board. DOSM\u2019s broader Tourism Satellite Account, which includes indirect spending (supply chain, wages, reinvestment), estimates total internal tourism consumption at RM13.7 billion in 2024 — meaning every RM1 of direct tourism spending generates RM0.57 of indirect economic activity.

Revenue Breakdown by Category

Tourism spending in Sabah follows a predictable pattern across major categories, with accommodation and F&B dominating. Understanding this breakdown is key for policy and investment decisions.

Tourism Revenue by Category (Estimated 2025)

Accommodation generates the highest share, followed by dining and activities. These three categories account for 77% of total spending.

Source: Sabah Tourism Board breakdown

Accommodation (32%, ~RM2.8B): Hotels, resorts, guesthouses, and homestays. KKIA averages ~RM250–500/night (3–4 star); luxury resorts command RM600–1,500+/night. Average occupancy of 72% indicates healthy demand with pricing power.

Food & Beverage (25%, ~RM2.2B): All dining — from street food (RM5–20/meal) to fine dining (RM100–300+/meal). International visitors spend 3–4x more on F&B than domestic; premium F&B is a significant opportunity for revenue growth.

Activities (20%, ~RM1.75B): Mount Kinabalu climbs, Sipadan diving, river safaris, guides, entry fees, transport services. Premium packages (dive liveaboards, private climbs) command RM2,000–5,000+; this is the highest-growth category.

Shopping (13%, ~RM1.1B): Souvenirs, handicrafts, retail goods. Night markets and duty-free shops in KK drive volume; e-commerce is cannibalizing some retail.

Transport (10%, ~RM875M): Domestic flights, taxis, car rentals, boat charters. Local transport spending is often overlooked but provides steady income.

Revenue by Source Market

International visitors generate higher revenue per capita than domestic visitors, despite lower volume. This is because international travelers spend more on accommodation, dining, and premium activities. The top 5 source markets (China, Singapore, South Korea, Taiwan, Indonesia) generate approximately 45% of international tourism revenue.

Tourism Revenue Contribution: International vs Domestic

Despite comprising only 40% of arrivals, international visitors account for 51% of revenue due to higher per-visitor spending (RM3,800 vs RM1,200).

Source: Sabah Tourism Board

Busy night market in Kota Kinabalu with tourists shopping and eating at stalls — Night market shopping & dining

Upscale resort dining setup with local and international dishes, tourists dining — Fine dining — premium F&B

Dive resort scene with scuba equipment and tourists preparing for diving adventure — Adventure activities — high-margin

Spending Patterns: International vs Domestic

International visitors (RM3,800 avg): Spend more on accommodation (40% of budget), premium dining (20%), activities (25%), and shopping (15%). They stay longer (5–7 nights average), book packages, and participate in high-cost adventures (diving, mountain climbing).

Domestic visitors (RM1,200 avg): Focus on budget accommodation (25% of budget), casual dining (30%), activities (30%), and shopping (15%). They stay shorter (2–3 nights), prefer day trips, and seek value experiences. Weekend getaway-focused.

By nationality: Chinese tourists spend highest (RM4,500–5,000 per trip, luxury resorts + high-end dining). Australian, British, and European tourists spend RM3,500–4,000 (adventure activities). Southeast Asian tourists spend RM2,000–2,500 (business + leisure mix).

Employment & Multiplier Effects

Tourism is a significant employment engine. The sector directly employed 387,600 people in 2024, up 6.9% from 362,700 in 2023. Employment growth outpaced visitor growth, indicating either sector expansion or wage pressures. Key job categories: accommodation and food services (largest), retail trade, transportation, and guides/tour operators.

The multiplier effect means every tourism job supports ~1.5–2.0 indirect jobs in supply chains (food suppliers, laundry, transport, construction). Total tourism-induced employment (direct + indirect) is estimated at 550,000–650,000 people, or ~15–18% of Sabah\u2019s workforce.

Frequently asked questions

Q How does Sabah's RM8.74B tourism revenue compare to Langkawi or Penang?

Sabah's RM8.74B (2025) is lower than Penang (~RM12–14B estimated) but comparable to or slightly above Langkawi (~RM7–8B). However, Sabah is growing faster — tourism arrivals grew 20.8% YoY while Penang grew 8–10%. In terms of revenue per visitor, Sabah (RM2,306/visitor) exceeds both, indicating higher-spending tourists.

Q What are tourists spending most on in Sabah?

Accommodation (32%) is the largest category, followed by F&B (25%) and activities (20%). Accommodation includes hotels, resorts, and homestays. F&B covers all dining. Activities include Mount Kinabalu climbs, Sipadan diving, river safaris, tours, and entry fees. Shopping (13%) and local transport (10%) round out the breakdown. Luxury travelers spend 40%+ on accommodation; budget travelers focus on activities.

Q How can Sabah increase revenue per visitor?

Strategic opportunities: (1) Expand luxury resort supply (5-star resorts command 3–5x the rates of 3-star hotels); (2) Develop premium adventure packages (e.g., private Mt Kinabalu climbs, exclusive dive charters); (3) Grow MICE tourism (conferences, weddings, incentives generate 2–3x spending); (4) Extend average stay through multi-destination packages; (5) Increase F&B prices via fine dining and cultural dining experiences.

Q What is MICE tourism and how much does it contribute?

MICE = Meetings, Incentives, Conferences, Exhibitions. MICE travelers spend 2–3x more than leisure tourists (RM6,000–8,000 per person vs RM2,306). Sabah is positioning itself as a MICE destination with The Nexus resort conferences and KK city facilities. MICE is estimated to account for 5–8% of tourism arrivals but 12–15% of revenue. Growing MICE is a key strategic priority for 2026–2030.

Q Do eco-tourism and cultural tourism command premium pricing?

Yes — strongly. Eco-tourism experiences (Danum Valley, Kinabatangan, Tun Sakaran Marine Park) attract high-spending tourists willing to pay RM400–800/day for guided experiences. Cultural tourism (Kadazan homestays, indigenous village tours) commands RM200–400/day premiums. These segments show the highest growth (25%+ annually) and highest satisfaction rates. Expanding eco and cultural tourism is critical for sustainable revenue growth.

Q How much does heritage tourism contribute to Sabah revenue?

Heritage and cultural tourism (local temples, Sandakan history, colonial sites, museum visits) is estimated at 8–12% of activity spending, or ~RM200–300 million annually. This segment is underdeveloped — Sabah has rich history (WWII sites, colonial architecture, indigenous heritage) but limited premium heritage packages. With investment, heritage tourism could grow 30–40% and command higher per-visit spending.

Q What employment does tourism generate in Sabah?

Tourism employs 387,600 people in Sabah (2024 DOSM), or ~10% of the workforce. Employment is spread across accommodation (+5.6% growth), food services (+6.2%), retail (+8.3%), and transport. Average wage in tourism is ~RM2,200–2,500/month, slightly below state average. Job creation has accelerated post-COVID: +6.9% from 2023–2024.