KOTA KINABALU: Developers and tourism investors are encouraged to look beyond urban centres and consider rural areas as promising destinations for investment in Sabah’s growing tourism sector.
Assistant Tourism, Culture, and Environment Minister Datuk Joniston Bangkuai said rural tourism has emerged as one of Sabah’s strongest attractions, offering unique cultural and nature-based experiences that set the state apart.
“As we continue to grow Sabah’s hospitality and tourism sector, I would also like to take this opportunity to encourage more tourism investors to explore opportunities in our rural areas,” he said during the signing ceremony for the Ramada by Wyndham Kota Kinabalu hotel on Monday (April 7).
He described rural Sabah as the “gem” of the state’s tourism, stressing that targeted investment in quality accommodation and tourism infrastructure could unlock vast potential for both travellers and local communities.
“Rural tourism in Sabah is gaining traction. By investing in quality accommodation and tourism facilities in these areas, we can ensure a more inclusive tourism development that benefits not just urban centres, but also the communities in the interior,” said Bangkuai.
He added that such developments would complement Sabah’s strategy to promote sustainable and community-driven tourism while bringing tangible economic gains to rural populations.
Bangkuai made the remarks while officiating the memorandum of agreement (MoA) between Capitol Hospitality Group, Mega City Builder, and Wyndham Hotels for the establishment of an international hotel brand at 88 Avenue, a new mixed-development project here.
Capitol Hospitality Group was represented by its managing director Lim Yi Yen while Eudo Chan, the senior director of Development/South East Asia and Pacific Rim signed on behalf of Wyndham Hotels.
While welcoming the partnership and the positive impact it will bring to the city’s hospitality scene, Bangkuai stressed the importance of replicating similar quality investments across rural destinations.
“We are not just selling the beauty of nature, but also the experience of Sabah’s friendly and courteous hospitality,” he said, adding that Sabah’s tourism success must go hand-in-hand with service quality and inclusivity.
The new hotel project is expected to boost local employment and stimulate related industries such as food and beverage, retail, and services.
With over 680 hotels and more than 26,000 rooms currently available in Sabah, Bangkuai said there is still ample room for growth, particularly in rural areas where tourism infrastructure remains limited.
He also urged transparency, professionalism, and service excellence as the foundation for future tourism growth, especially in preparation for Visit Malaysia 2026.
“This is the kind of forward-looking investment we need, one that delivers both economic and social impact, while ensuring Sabah remains competitive in the regional tourism landscape,” he said.
Meanwhile, Chan said the new hotel, slated to open in the first quarter of 2029, will significantly complement the 88 AVENUE mixed development project, strategically located in the bustling district of Kepayan.
The project, which includes a shopping mall, residential apartment blocks and commercial suites, is expected to draw a diverse mix of international and local visitors.
"We are excited to bring the Ramada by Wyndham brand to Kota Kinabalu, which is one of the most vibrant and fast-growing cities in Malaysia.
"With the support of Capitol Hospitality Group and Mega City Builder, we are confident that this new hotel will contribute significantly to the city’s tourism growth and its global reputation as a hub for business and leisure,” said Chan.
