LABUAN’S oldest and most iconic landmark, Hotel Labuan will be demolished after standing derelict for nearly three decades.
The 10-storey building – once a 150-room establishment owned by former Sabah chief minister Tan Sri Harris Salleh – was declared structurally unsafe and closed in November 1997.
Abandoned, in the heart of town, it become an eyesore after years of demolition delays.
Labuan Corporation (LC) chief executive officer Mohd Sukuran Taib confirmed the demolition would proceed after a tender was successfully issued last March.
He said contractors had been mobilised and initial preparations at the site were underway.
“Hotel Labuan has been left idle for too long and poses safety risks to the public.
“With demolition now moving forward, we can pave the way for new development opportunities that would better serve the community,” he told Bernama.
Mohd Sukuran said efforts by LC over the years to secure a developer for the site did not materialise, leaving the building to decay further.
For many long-time residents, the announcement marks a bittersweet moment as the hotel once served as a hub for social gatherings, business events and visits by dignitaries.
“The removal of the hotel highlights the balance Labuan faces between preserving historical identity and advancing modern development.
“Although the future use of the land has yet to be disclosed, observers note that redevelopment is likely to align with Labuan’s ambitions as a financial, tourism and logistics hub,” said retiree Mustafa Ali Abidin, 65.
With the demolition, he said one of Labuan’s last visible symbols of its early urbanisation would soon vanish, leaving behind only memories and photographs that documented its once-prominent role in the island’s history.
