A WIDER APPEAL TOURISM ANALYSIS

By : OXFORD BUSINESS GROUP

EMERGING as one of the world's most popular nature travel destinations, Sabah must go beyond the ecotourism segment and begin to offer a more diverse array oftourism products to achieve sustainable growth.

This diversification will not only protect the environment by reducing pressure on ecological sites, but will also boost arrivals, attracting more visitors with special medical offerings, sporting events, and entertainment options. A more varied tourism industry will also attract increased levels of private investment as new markets open to the private sector.

MEDICAL TOURISM: One new growth market is medical tourism, which brought RM350m ($110m) into the Malaysian health care sector in 2010, up 40% from RM250m in 2009. Although the health tourism segment is less developed in Sabah than in Peninsular Malaysia, the two territories share many competitive advantages, including low currency exchange rates, accredited hospitals and tax exemptions on earnings from foreign patients.

Compared to mainland Malaysia, Sabah also offers cheaper accommodation and a tranquil setting. Sabah Medical Centre (SMC), located in Kota Kinabalu is well positioned to drive health tourism numbers.

ln late 2010 SMC was acquired by KPJ Healthcare, one of the leading private health care providers in South-East Asia. KPJ is currently developing a RM200m ($62.7m) hospital at SMC containing 300 beds, 500 parking bays and the latest medical technology, including Borneo's first 640-slice CT scanner "KP] sees immense potential in this area and we also believe thatthe health care market is large and relatively untapped? KPJ’s managing director: Siti Sa'adiah Sheikh Bakin said of Sabah and its neighbour Sarawak in late 2010.

SPORTS TOURISM: In the last decade. Sabah has expanded its range of spouting activities, with hockey, yachting, distance running and competitive climbing all attracting more visitors. Sabah has also received significant attention from rugby fans as the state has hosted a number of internationaltournaments, including the Asian Rugby Sevens, the Borneo Sevens and the Asia Pacific Womens Sevens. Local rug by officials say these events have brought hundreds of foreign delegates to Sabah, many ofwhom contribute to high-yield tourism by dining at expensive restaurants and staying for extended periods at upscale hotels.

Another emerging sport is golf which has been identified bythe Economic Transformation Programme (ETP) as a major growth area for private investors, According to official figures, more than 230,000 rounds of golf were recorded in Sabah in 2001 20% of which were played by foreign tourists. For private golf courses in particulac international players represent a high-yield market with strong potential for growth.

"The steady increase in revenue from golf tourism indicates that Sabah is becoming one of the popular destinations among foreign golfers," Chief Minister Musa Aman noted to reporters at the 2008 Commonwealth Sports Tourism Conference in Kota Kinabalu.

REBRANDING: Another way in which Sabah can cultivate new markets is through a rebranding campaign that translates unique features into competitive advantages. For instance, many have argued that Sabah can separate it self from other tourism destinations by advertising its unique culture, which seamlessly blends 32 ethnic groups speaking 58 different languages.

"Without question, we can attract a broader range of tourists by more aggressively promoting our singular culture, which incorporates the costumes, cuisines, folkways and religious beliefs of numerous groups?" Loisin Ramut, the Manager Of Research And Communications at the Sabah Cultural Board told OBG.

Sabah is also distinguished by its status as a family destination. From tranquil beaches to petting zoos to long hiking trails. The state offers a wide range of activities for both children and adults, with a more wholesome atmosphere than other nearby tourism locales.

“Sabah's tourism package is 100% family-oriented? said Ben Kong Chung Vui, CEO of the Wah Mie Group, "This gives us an advantage in the industry and should be one of our strongest marketing points moving forward."