The Malaysian Insight

THREATS from pirates, higher operational costs because of the minimum wage and lacking power and water supplies are some of the challenges facing resort operators at the divers’ paradise in Semporna, Sabah.

On top of that, they also have trouble getting workers on time as their applications are usually stuck at the government’s foreign-worker application process.

With the state government now focusing on Semporna, Sandakan and Tawau to attract more tourists, these operators are looking for all the help they can get.

Some 3.8 million tourists visited Sabah in 2018, an increase of 5.3% compared with 2017, earning Sabah a record high RM8.3 billion from tourism. 

The state feels the diving zones around Semporna, Sandakan and Tawau can generate additional revenue.

Mabul Water Bungalows managing director Luo Ming He said there are more China tourists visiting Semporna to learn scuba diving, resulting in the resort scrambling to find more instructors.

It is difficult to get approval for foreign workers and the new minimum wage is also adding to their cost, he said.

Luo’s resort currently employs 250 people. With the new minimum wage set at RM1,050, he told The Malaysian Insight operational costs increased by about 20% to 25% and he had to retrench some workers.

“We are applying for work permits for China dive instructors and the process takes about two months but we have to pay them the two months’ wages while they are still not allowed to come here and work,” Luo said.

He is hiring Chinese dive instructors because of the increase in Chinese tourists, while there are fewer Westerners who appear to heed a travel advisory issued by the US.

Luo said he has been hiring workers fluent in Chinese and English in recent years.

Singamata Adventures & Reef Resort managing director Tang Woo Keong also said the new minimum wage has driven up operation costs.

Tang said local workers earn an average monthly wage of about RM600 while chefs are paid slightly higher.

With the minimum wage now at RM1,050, gradually rising to RM1,500, there are bound to be manpower adjustments.

These include reducing manpower and outsourcing work but many locals employed at these resorts will still lose their jobs at the end of the day.

Other than manpower issues, many resorts in the outer islands also have to be self-reliant when it comes to electricity and water supply.

“The resorts are not provided with clean water supply, our workers have to transport clean water from outside. Blackouts are also frequent and operators have to purchase generators to ensure uninterrupted power supply. We have to make do ourselves and we can’t rely on the local electricity grid or water supply,” Tang said.

He added that the operational costs of resorts in outer islands are high, especially when it comes to fuel for speedboats.

Luo also bought generators for his resort to avoid the frequent blackouts or water disruption, which will affect his business’ reputation.

“Generators aren’t cheap and repair works when they break down aren’t cheap either,” Luo said.

Sabah is also competing with Bali and the Philippines to attract tourists where more complete experiences are offered and are thus more attractive.

Other than manpower and utility issues, Tang said the advancement of the tourism industry depends on the cooperation of several parties, including keeping air fares to Tawau low.

“Sometimes, flights from Kuala Lumpur to Tawau can balloon to RM1,500. This will, of course, scare away tourists and this is a great loss to the tourism industry.

“During China’s peak holiday season, there will also be issues of not being able to book flights and tourists have to book way in advance.”

He hopes the Tourism, Arts and Culture Ministry can discuss with airlines and look into the price spikes for flights to Tawau. – June 8, 2019.