CASE FOR CHANGE GREATER OVERVIEW …with plenty of tourist Plenty of opportunities to increase Design approach to attractions in Kota Kinabalu tourism spend in Greater KK transform Greater KK OVERVIEW Greater KK has more than 36 tourist For a 692,000 population, Greater KK Tourism in Greater KK needs to come up with more iconic and Greater KK will focus on two aspects Key Focus Areas & Enablers for Greater KK A snapshot of Kota Kinabalu Tourism is a strong economic driver in … attractions surrounding the city... provides a variety of... world class attractions in order to move up the value chain… Key Economic Driver Key Enabler To attract people To attract people To attract people Category of traveller Characteristics to visit KK to spend in KK to live in KK ….and the highest number of 5-star Hotel & Resorts... Tourism arrivals into Sabah are mainly fuelled by Based on the historical CAGR, the number of tourist into Total Tourist shopping complexes / malls Tourist attractions/ products Attractions in 36 1. Pacific 1. 1 Mall 10. Wawasan Plaza TOURISM LIVABILITY AREA $$$ High • They prefer niche attractions, avoiding the mass tourist areas 2 Greater KK 2. Sutera Magellan 2. Centre Point 11. Star City Plaza City 351 km • 351 sq km approx. domestic tourists… Sabah will touch 4 – 12 million by 2020 • Big spender, willing to spend 3. Shangri-La 3. 12. Megalong Mall () High Yield • Tend to spend longer time in one area to experience various attractions POPULATION (2007) Rationale / Why ? Rationale / Why ? Residential & Commercial Property Development Culture & 4. Nexus Karambunai 4. Mall 13. One Place Mall () • Privacy & exclusiveness City 543,765 • State Capital and also Banking, Finance and 18 Traveler • Generally senior corporate leaders, businessmen, etc Visitor Arrivals Ratio from 2001-2010 Heritage 5. Le Meridian 5. Central Plaza • Tourism is 3rd largest GDP contributor • To retain locals and attract more 2 in Sabah Malaysians and foreigners to live, work Public Safety Density 1,516/km Education Capital of Sabah 6. Hyatt Regency 6. KK Plaza • Sabah tourist receipt will reach and spend in KK Granted city status on 7. Shangri-La Rasa Ria 7. City Mall • They go via mass tour operators & less through websites, etc RM16 billion by 2020 (CAGR of 14%) • To enhance the city offerings for locals Public Transportation • Often they through a pre-planned travel schedules and itinerary Eco-Tourism 8. Gayana Resort 8. • Sabah tourist arrival will reach and tourists Feb 2, 2000 • Tourism gateway 14 • Medium spending power, often the bulk of the travel expenses are paid directly to the tour operators Domestic International Group 8.1 million by 2020 (CAGR of 12%) • To improve public transport and 9. Bunga Raya 9. Warisan Square $$ • Medium length stay Healthcare 12.8 million • Greater KK is a gateway to many tourist accessibility into and within the • Less “free-and-easy” • KKIA, the second busiest airport in Travelers attractions in Sabah connecting cities Number • Often families, groups of friends

is located 8 km south of the CBD of visitor Entertainment 7 chain Value Lab Objectives Key Drivers Key Enablers Kota Kinabalu 1,800,000 1,683,924 1,708,716 • The come in small groups, often with friends, rather than families • shares common 1,599,230 All of these are geared to generate high tourist • They focus on value for money attractions and “free-and-easy” attractions Health & Free Independent • Medium spending power 3 spending… boundaries with and Penampang 1,600,000 1,240,735 8.1 million Wellness • Focused on 1-2 key activities of interest (like diving, eco adventure / sports) Traveler (FIT) • Short-medium length stay Districts 1,340,735 1,400,000 37% 63% Source : Lab Discussion & Source : Lab Discussion with Sabah Tourism Board $ Low • 3 Universities, several Colleges and High 19%** 12.5%* 1,200,000 1,067,677 Schools 4.5 million Taking the cue from the city vision of KK by year 2020, the lab 950,963 • 3 Government Hospitals and 4 private 1,000,000 Where do the high-yield tourists come from ? proposed a theme for Greater KK to be known as... Sabah Tourism 987,660 There are some notable eco-tourism Most of culture & heritage attractions hospitals 800,000 681,742 Internal target Average Tourist Spend of more than RM2,500 per Person (RM) 579,092 792,308 761,094 750,923 701,198 • Museums, Restaurants, Cinemas, Sports 600,000 512,514 701,198 2.50 attractions in Greater KK with medium within Greater KK generate low tourist million 2.27 million Complexes, Beaches, Events 562,144 569,712 2008 2009 2010 400,000 528,264 to high spending... spend... 406,009

200,000 2010 2020 Sabah State Average Tourist Spend (RM) Tunku Abd Rahman Kota Kinabalu The Green Wildlife Atkinson Tower City Signal Hill Park Wetlands Connection Park Museums Gateway to Borneo’s * Historical CAGR based on gross arrival 2,698 2,660 3,070 3,465 4,032 Various studies on KK population projection Based on the projected population growth, KK 0 ** Historical CAGR based on nett arrival (Total international minus migrant workers & job seekers) CAGR was based on historical growth from 2001 - 2010 3,974 4,011 4,113 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Year 3,512 shows that the population will reach almost would need at least 100,000 new dwellings to 3,457 3,426 3,225 3,200 2,751 2,786 Natural Wonders 2,729 2,768 1 million by 2020 fulfill the organic demand by 2030 2,599 2,620 2,610

Kipandi Butterfly Kawang Information Kiulu White Water Monsopiad Cultural Mari-Mari Cultural How many dwellings do we need? Dinawan Island Tamu (Gaya Street) Tun Mustapa Assuming a steady/constant growth, Tourism data shows tourists mainly spend on leisure & Park Centre Rafting Village Village Cohort Survival Statistics Department Sabah Structure Plan

To meet population Balambangan Island Benggi Island 40,000 increase alone tourist spending is expected to recreational activities (RM4.1 billion) 1,145,209 China & Japan Other Europe UK & Ireland Australia increase to RM16.8 billion by 2020 2020 Hong Kong Contoh kawasan “Greenfield” di Contoh kawasan “Greenfield” tapak di persimpangan bertingkat Jalan antara bangunan Petronas, Sadong Source : Sabah Tourism Board Tuaran Jaya To replace squatter Tourist Receipts 2010 (RM million) PITAS 854,779 779,576 30,000 and transition housing (10% of national tourist receipt) Bird Sanctuary 708,544 KOTA BELUD 637,842 LAUT CHINA SELATAN

638,003 567,300 Kinabalu Park Turtle Islands Park Tunku Abdul Rahman Park 476,202 497,509 Tourist Spend Per Visit Per Person (RM) TUARAN Mt Kinabalu 569,900 To replace ageing 13.9 KOTAKINABALU 518,000 30,000 housing stock Golf 431,534 Rafflesia LABUK SUGUT 467,200 Total Tourist Receipts 2010 Information 418,100 PUTATAN Centre Sepilok RM16.8 PENAMPANG Forest Contoh kawasan “Brownfield” di Contoh kawasan “Brownfield” di Pulau Tiga Park Reserve Kg. Air Tg. Aru Kg. Sembulan 2005 2010 2015 2020 2025 2030 MICE tourism is an important PAPAR CAGR 96.8 MICE Crocker Kulamba Wildlife Reserve billion Range Park Mt Trus Madi RM4.426 billion Low Medium High PULAU Gomantong Caves BEAUFORT Tabin Wildlife Danum Valley Reserve 14.2% tourism component in Greater KK Conservation 2010 Area KK city is congested with motorists where At the same time, KK city is the key DIve 192.5 10 - 50 60 - 150 160 - 250

TENOM approximately 60% of total vehicles tourism gateway for local visitors and Maliau Basin Conservation Area MICE tourist arrivals into Sabah are The number of MICE events in Sabah is on Hills Park registered in Sabah are in KK foreign tourists to Sabah Leisure & 4,112 18 TAWAU RM4.4 Recreation encouraging... the rise after the Asian economic crisis billion MICE Tourist Arrival Number of Event Island Cultural & Heritage International Domestic 500,000 Vehicles: Motorcycles 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 559, 955 • Clarke 450,000 Motor Cars • Manila Assumption : CAGR was based on historical growth from 2009 - 2010 Source : Sabah Tourism Board - BOD 26 May 2011 Average Tourist Spend (RM) 400,000 Taxis & Hire Cars • Shenzhen (China) • Hong Kong 38,003 41,671 57,157 38,998 47,448 350,000 Buses • Taipei 30,142 30,306 300,000 Lorries & Vans 14 • Singapore 27,015 502 250,000 23,220 4-Wheel Drives • Jakarta 451 440 Cars: 20,770 410 194,744 19,507 405 The meaning behind the theme... 200,000 To recap, Sabah has one of the highest tourist spend per pax Further analysis of the tourist receipt showed that shopping, 18,496 18,451 18,228 Others Vehicles Eco-Tourism 17,142 150,000 Trailers Kota Kinabalu 100,000 Total Vehicles comparing other states.. F&B and accommodation contributed more than 70% of the

50,000 25,370 13,192 0 GATEWAY TO BORNEO’S NATURAL WONDERS Kota Kinabalu Sandakan Tawau Lahad Datu Keningau Beaufort total tourist receipts in Sabah… 7 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 Source : Sabah Tourism Board - BOD 26 May 2011 Source : Sabah Tourism Board - BOD 26 May 2011 Tourist Receipt 2010 (RM million) 350,000 Motorcycles 30% 305,570 increase What does it mean for the locals? What does it mean for the tourists? 288,028 Motor Cars Melaka Sabah Entertainment 300,000 270,213 Average MICE tourist spend (RM per pax) 251,935 Taxis & Hire Cars 235,357 8.0 million 250,000 Buses Total 6.3 million State Average Tourist Spend (RM per pax) MICE Average Tourist Spend (RM per pax) • Greater job opportunities in the services and hospitality • Increased variety of tourist attractions in the city as an 2.4 million 3.2 million Others 44.3 Lorries & Vans tourist 2.5 million sector introduction to what Sabah can offer 200,000 Tourist Arrivals arrival 6,000 4-Wheel Drives per Annum Local Transportation 345.2 The MICE tourist • Improved public safety as a result of making KK a safer city • Seamless travel experience within the city and other major 150,000 for the locals and tourists towns outside Greater KK Others Vehicles Potential upside 5,000 RM6.0 billion Sightseeing 358.5 3 • Better accessibility and service for public transportation to • Better lifestyle and modern living facilities/residential Trailers RM4.5 billion 100,000 Total RM4.4 billion average spend help daily commuters areas to attract more foreign visitors to opt for Sabah/KK ~ 4,000 36 RM4.4 billion Tourist RM1.2 billion Entertainment & Recreation 535.5 +72% • Less congestion in the city as a second home 50,000 Tourist Attractions In Tourist Our aspiration / focus receipt Health & Wellness 3,000 • Promote modern lifestyle and living whilst preserving the • Modern living and better public service to attract high in Greater KK Receipts for Sabah per person is 72% 0 Accomodation 938.3 culture and heritage spending tourists and local Malaysians to extend their stay 2006 2007 2008 2009 2010 RM1,843 in KK Total RM1,760 2,000 • Creation of a vibrant city to retain local talents to live, work Food & Beverage 982.6 higher than the and play in Sabah • A city that showcases the best of Sabah in a variety of spend / RM562 70% 1,000 ~ RM190 • Job opportunities with specialized skills in niche areas forms 100 tourist Shopping 1,221.6 of tourist receiptS Source : Lab Discussion & Sabah Tourism Board 492,606 842,188 Tourist Attractions total state average • Economic multiplier impact to the local retailers and 0 in Sabah Vehicles in KK Total vehicles in Sabah 2006 2007 2008 2009 2010 others due to tourism boom 0.0 500.0 1,000.0 Source: Sabah Tourism Board Source : NSTP online, Melaka Tourism and Sabah Tourism Board Source : Sabah Tourism Board - BOD 26 May 2011 Source : Sabah Tourism Board - BOD 26 May 2011