tourism industry in brunei

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Boosting the Tourism Sector in Brunei

A version of this article was first published in Borneo Bulletin on June 19, 2024.

For decades, the hydrocarbon sector has been the primary driver of Brunei’s economic growth and development. Since the first oil discovery in 1929, Brunei’s oil and gas sector has expanded significantly and remained the cornerstone of the nation’s economy. In 2022, the oil and gas sector accounted for nearly half of the country’s GDP, underscoring the dominance of the hydrocarbon sector.

However, Brunei’s hydrocarbon-based economic model has come under increasing pressure in recent years. Global energy prices have become more volatile, while challenges in rejuvenating the country’s maturing oil and gas fields have resulted in more frequent production disruptions.

Global decarbonization efforts have added complexity to the sector’s development. As the world transitions from hydrocarbon to renewable energy, Brunei’s oil and gas sector, as its main source of export revenue, is at risk.

To safeguard growth and the future prosperity of the country, the government has placed economic diversification as a key policy thrust in its national development plans. Under the Wawasan Brunei 2035 , tourism has been identified as one of the five priority sectors for economic diversification.

A vibrant tourism sector will not only bring in foreign visitors and forex revenues, but also foster the development of related industries and help job creation. Despite an encouraging rebound in the number of foreign visitors since 2022, the recovery of Brunei’s tourism industry lags behind that of its regional peers (Figure).

Limited activities, infrastructure

The country’s emphasis on preserving its rich cultural and natural heritage helps place Brunei in a unique position to attract visitors interested in authentic cultural experience. However, this could be a two-edged sword because new tourism activities, such as the introduction of more contemporary and diverse attractions, might be overlooked as a result. Compared to its ASEAN peers, Brunei has fewer number of tourist attractions, such as amusement parks, sporting arena, and other entertainment establishments.

Brunei’s limited tourism-related infrastructure is also a key challenge. Hard infrastructure, including airport connectivity, ground infrastructure, and tourist service infrastructure such as accommodation and car rentals, appear to be insufficient. Soft infrastructure in terms of skilled workers and labor market conditions also trail behind regional peers, reflecting some challenges in attracting and retaining talents for the sector.

Over the years, there has been also a lack of marketing and promotional campaigns to help drive the tourism sector’s growth. Furthermore, the strength of the local currency vis-a-vis regional peers’ can make Brunei look more expensive to foreign tourists and influence their decision to visit.

Investing in both hard and soft infrastructure is thus necessary to foster growth of the tourism sector. The planned establishment of a new Brunei-based airline, which is expected to enhance Brunei’s connectivity with several Chinese cities, bodes well for tourism. Enhancement of infrastructures, such as equipping hotels with better facilities and internet connection, should also be a priority.

Promote niche markets

Given the competitive tourism landscape in the region, Brunei should also focus on establishing niche markets for its tourism sector by leveraging its rich culture and biodiversity. The establishment of ecotourism resorts in Temburong district is a step in the right direction.

Another viable option to spur the growth of the tourism industry is to promote Brunei as a premier destination for Islamic tourism. Brunei has the potential to further develop this niche market, given the extensive availability of prayer facilities, Halal dining and Muslim-friendly hotels and resorts in the country.

Setting policy priority is the first step to boost the growth of Brunei’s tourism sector. Encouraging signs are emerging with the ongoing development of an industry roadmap and a database of nationwide tourism products and services. Subsequently, comprehensive strategic development plans should be formulated to unlock the potential of niche segments around eco-, Islamic and community-based tourisms. With clear directions in place, Brunei has a good opportunity to eventually become a top niche tourism destination in the region.

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Brunei Tourism launches packages to kickstart tourism in endemic phase

Emerging and existing attractions consolidated in newest destination packages for each district

The Tourism Development Department (TDD) has launched new destination packages for each of Brunei’s districts in a bid to kickstart the tourism industry with domestic activity in the country’s early endemic phase.

Brunei’s tourism industry has taken a significant hit since the country closed its borders with the first wave of COVID-19 in March 2020. Although domestic tourism enjoyed a small boost between the end of the first wave in the last quarter of 2020 and the outbreak of the second wave in August 2021, tourist arrivals in the first nine months of 2021 totaled 2,700 – about 1% of the total over the same period in 2019.

TDD – and the industry’s public-private board Brunei Tourism – are now planning for a domestic push with Brunei in its early endemic phase , which will help prepare the industry for the eventual arrival of tourists when the global pandemic subsides.

The packages for each districts have been designed as map brochures on Brunei Tourism’s website , and consolidate new and existing attractions – focusing on experiential tours; where visitors can discover cultural sites, local products, enjoy nature, and partake in recreational activities.

In the first of a series of packages launches in different districts earlier this month, the Minister of Primary Resource and Tourism YB Dato Seri Setia Awg Hj Ali Apong said the packages were more flexible in comparison to previous iterations, to give visitors more customisability based on their budget and interests.

“(The packages) promote attractions offering experiential tours that combine tourism primer products, new emerging products and products by the village consultative councils (MPK),” said the minister at the Temburong destination launch on February 3 at the newly opened The Abode Resort & Spa.

He added that the socialisation of the packages and their attractions would help the domestic market’s anticipated main holiday periods which are the school holidays in April, August, and December. Recreational activities and staycations for all family members have been given the greenlight since the country entered into its early endemic phase on December 15, 2021.

Temburong welcomes first luxury solar-powered resort

Brunei’s main eco-tourist destination officially welcomed its first luxury solar-powered resort, The Abode Resort & Spa , as part of the Temburong packages’ launch.

The two hectare site off the main road of Jalan Labu features ten chalets, with plans to build up to 70 units over the next five years if market demand increases. The resort is a decidedly premium offering in the district, with nightly stays starting at $398.

The Temburong brochure lists 16 sites in total to either visit or stay. Each of the eco-lodges based in Temburong, including Sumbiling Eco-Village, Trandie, Freme Rainforest Lodge, and The Abode, offer their guests a number of guided hiking trails and boat and river activities.

Other highlights include the Sibut long house which showcases Iban culture and MPK Batu Apoi’s locally made sago, which is used to make one of the country’s main dishes ambuyat.

Tutong gaining traction for eco- and community-based tourism

Tutong has become an increasingly popular option for local and foreign visitors to learn about traditional Brunei culture, buoyed by active MPKs with a number of village products and activities.

The weekly Thursday market of Tamu Tutong where fresh local produce and cooked delicacies can be found is a popular start for visitors looking to see what’s on offer the district.

For those looking to gain insight to Tutong’s heritage and way of life, the home of Tanjong Maya’s former penghulu has been converted into a living museum run by his descendants called Lamin Warisan . There are also several eco-lodges and homestays including the Bintudoh Greenspring Resort, Eco Ponies Garden, and one of the last traditional Dusun homes, the Alai Gayoh Anak Pulau .

The district is also home to a number of sustainable agriculture businesses, including those that produce coconut oil, agarwood perfume, honey, seafood as well as rear deer.

On the coast and down south: Belait’s dual attractions

Much of Belait’s attractions can be divided into two areas: one showcasing the oil and gas industry along the coastal towns of Seria and Kuala Belait; and the other offering nature and traditional living in the district’s inner, rural south along Jln Labi.

In Seria, visitors can learn about the source of the nation’s wealth at the commemorative Billionth Barrel Monument and the recently revamped Seria Energy Lab .

Along the winding 50km road of Jln Labi that connects visitors to Belait’s rural south are a number of eco-based attractions; beginning with the Tropical Biodiversity Centre, followed by the picturesque alluvial freshwater swamp Luagan Lalak.

Towards the end of Jln Labi are the road’s two Iban longhouses, Mendaram Besar and Teraja , which are surrounded by trekking routes leading to waterfalls.

Audio tours offer new depth to popular sites in Brunei-Muara

Visitors to the Royal Regalia Museum can now explore its galleries with a digital audio tour through the free izi.TRAVEL mobile app courtesy of local IT company Dynamik Technologies. The audio guides are expected to be rolled out to different attractions, and will be complemented by virtual touring options as well.

Though it may not have the escapism of the eco-lodges of Tutong and Temburong, Brunei-Muara arguably has more range in the types of activities visitors can partake in.

Adventure seeking enthusiasts can access watersports and diving in Muara from Poni Divers , have a game of Paintball in Jerudong, go off-roading with ATVs at the Katimahar Agri Park . In the capital, the Islamic Calligraphy and Art Study Centre of Yayasan Sultan Hj Hassanal Bolkiah not only features famous artworks and artefacts but offers calligraphy lessons.

Those looking to experience Brunei’s water village of Kg Ayer also can avail to a number of homestays , dining experiences and galleries; complemented by river cruises along the nearby mangroves to see proboscis monkeys and other wildlife.

Brunei earns six wins at the ASEAN Tourism Standards Awards 2022

The packages’ launch also saw a ceremonial awarding for the recently held ASEAN Tourism Standards Awards, where Brunei earned six awards.

Radisson Hotel won the ASEAN Green Hotel Award and the ASEAN MICE Venue Award. The Empire and Armada also took home the ASEAN MICE Venue Award.

Freme Travel Services’ eco-lodge’s Discover Temburong package won the ASEAN Sustainable Tourism Award (Rural Category). Their two days, one night package is inclusive of transporting guests to their Temburong lodge, offering fully guided activities, food and facilities in a rural setting.

Tutong also earned the ASEAN Clean Tourist City Award which not only recognises standards of cleanliness, but the number of cultural, natural, and man-made attractions.

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Travel & Tourism - Brunei Darussalam

• Brunei Darussalam
• In Brunei Darussalam, the projected revenue for the Travel & Tourism market is expected to reach US$46.96m by 2024.
• It is then expected to grow annually at a rate of 3.69%, resulting in a projected market volume of US$56.29m by 2029.
• The largest market in this market is the Hotels, which is projected to reach a market volume of US$19.50m in 2024.
• By 2029, the number of users in the Hotels market is expected to reach 132.70k users.
• In 2024, the user penetration rate is projected to be 33.0%, and this is expected to increase to 40.9% by 2029.
• The average revenue per user (ARPU) is expected to be US$312.00.
• By 2029, 65% of the total revenue in the Travel & Tourism market is expected to be generated through online sales.
• It is worth noting that in global comparison, United States is projected to generate the most revenue in the Travel & Tourism market, with an expected revenue of US$214bn in 2024.
• Brunei Darussalam's travel and tourism industry is heavily focused on eco-tourism, with a strong emphasis on preserving the country's natural beauty.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

out-of-scope

• Business trips
• Other forms of trips (e.g. excursions, etc.)

Travel & Tourism

• Vacation Rentals
• Package Holidays
• Analyst Opinion

Brunei Darussalam, a small but affluent country in Southeast Asia, is experiencing a steady growth in its Travel & Tourism market. Customer preferences: Travelers in Brunei Darussalam are increasingly seeking unique and authentic experiences, moving away from traditional tourist attractions towards more off-the-beaten-path destinations. There is a growing interest in eco-tourism, cultural immersion, and wellness travel experiences among both domestic and international tourists. Trends in the market: One notable trend in the Brunei Darussalam Travel & Tourism market is the government's efforts to promote sustainable tourism practices. Initiatives such as the conservation of natural habitats, promotion of local culture, and support for community-based tourism projects are gaining traction. Additionally, the country's focus on high-end tourism is attracting luxury travelers looking for exclusive and personalized experiences. Local special circumstances: Brunei Darussalam's unique blend of rich biodiversity, pristine rainforests, and vibrant cultural heritage sets it apart as a desirable travel destination. The country's strategic location in Borneo offers opportunities for adventure tourism, wildlife spotting, and exploration of indigenous cultures. Furthermore, Brunei's stable political environment and low crime rates contribute to its appeal as a safe and peaceful destination for travelers. Underlying macroeconomic factors: The growth of the Travel & Tourism market in Brunei Darussalam is supported by favorable macroeconomic conditions, including a strong GDP per capita and government investments in infrastructure development. The country's efforts to diversify its economy beyond oil and gas industries have led to a focus on tourism as a key sector for economic growth. Additionally, Brunei's visa policies, such as visa-free entry for certain nationalities, have facilitated easier access for international tourists, further boosting the tourism industry.

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Tourism in Brunei

Development of the tourism sector in brunei from 1995 to 2021.

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Brunei Darussalam Tourism Sector Research Highlights

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Brunei eyes tourism rebound to pre-pandemic levels Tourist arrivals increased more than two-fold in 2023

BANDAR SERI BEGAWAN – Brunei is targeting tourist arrivals to reach pre-pandemic levels in 2024, as the number of visitors more than doubled last year.

During the Legislative Council (LegCo) proceedings on Tuesday, Minister of Primary Resources and Tourism Dato Dr Hj Abd Manaf Hj Metussin said tourist arrivals rose from 35,701 in 2022 to 133,360 last year.

However, LegCo member Pehin Dato Hj Abd Rahman Hj Ibrahim said the 2024 target on tourist arrivals was set too low at 362,565.

MPRT is also looking to attract 552,733 tourists by 2029, but Pehin Dato Hj Abd Rahman said the targets need to be reviewed and improved.

Noting that tourism was identified as one of the five priority sectors in diversifying Brunei’s economy, he said the tourism targets are far below the figures of neighbouring countries.

Malaysia has set its sights on 27.3 million tourist arrivals , while Singapore expects to welcome about 15 million visitors this year.

Brunei experienced an upward trend in tourist arrivals for three years before COVID-19 hit, recording its highest number of visitors of 333,240 in 2019.

In response to Pehin Dato Hj Abd Rahman, the MPRT minister said the priority of the tourism targets is to reach pre-pandemic levels this year.

“If we can achieve the number of tourists to pre-COVID levels, I think that is a positive thing. This target is dynamic, we will review whether there are other initiatives that will cause a big impact.

“We are focusing on promoting medical tourism, education tourism and Islamic tourism,” he added.

Delivering his budget speech , the minister said $7.32 million has been allocated for tourism development projects over a five-year period.

Under the 12th National Development Plan, projects for the tourism sector include the $1.58 million upgrade of Temburong’s Pulau Selirong Forest Recreation Park and $1.36 million to refurbish the Kampong Ayer Culture and Tourism Gallery.

Another $3 million has been set aside for improving facilities at tourist attractions, including the construction of jetties along the Brunei River, Sungai Kedayan and Sungai Menglait for river cruise activities.

About $1 million will be spent on improving the quality of the tourism industry, such as capacity building and meeting green tourism standards.

Dato Dr Hj Abd Manaf further said the drafting of the Tourism Industry Roadmap is in the final stages. The roadmap will outline short, medium, and long-term plans to develop Brunei’s tourism industry.

A steering committee involving a number of government agencies will be established to coordinate and implement tourism strategies once the roadmap has been completed.

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• budget 2024
• Legislative Council 2024
• Ministry of Primary Resources and Tourism

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Over 400,000 tourists expected in 2026

In the short term, the tourism industry in the Sultanate anticipates that there will be over 400,000 tourist arrivals by air in 2026, bringing in an estimated BND300 million in tourism receipts from the arrivals.

Acting Director of the Tourism Development Department at the Ministry of Primary Resources and Tourism (MPRT) Salinah binti Haji Mohd Salleh said this during a presentation ceremony, held by the MPRT through the Tourism Development Department, to honour Bruneian recipients of the ASEAN Tourism Standards Awards, at its premises.

“To achieve these targets, we are working closely with current and new partners to explore new markets and launch new and improved products and packages,” she said.

The prestigious recognition was bestowed on Brunei’s entities in conjunction with the ASEAN Tourism Forum 2024 (ATF 2024), themed ‘Quality and Responsible Tourism – Sustaining ASEAN Future’ held on January 26 in Vientiane, Laos.

Permanent Secretary at the MPRT Hajah Tutiaty binti Haji Abdul Wahab was the guest of honour at the event.

“One of the Tourism Development Department’s initiatives was to organise the first Tourism Service Providers (TSPs) Enhancement Workshop that began in February last year,” Salinah said.

“The programme aims to increase the value of product offerings, instil confidence in the products, and provide TSPs with resources to enhance their products for the tourists,” she added.

She also said, “Over the last year, we have seen improvements in services and products provided by participants. This is a small but essential step towards ensuring that the sector expands and that visitors have an enjoyable, high quality and memorable experience.”

The ASEAN Tourism Standards serves as guidelines for all ASEAN member states and regional tourism industry players in providing high-quality and excellent services to tourists, with the goal of making ASEAN a world-class destination in accordance with the ASEAN Strategic Tourism Plan 2016-2025.

The Empire Brunei stands out as the sole recipient of the ASEAN MICE Venue Standard in both Exhibition Venue Type 1 and Meeting Room categories.

Additionally, Radisson Hotel Brunei Darussalam and An-Naura Hall of Yayasan Sultan Haji Hassanal Bolkiah Complex were awarded for their excellence in the Meeting Room category.

Radisson Hotel Brunei Darussalam was also awarded the ASEAN Green Hotel Standard, while Kuala Belait was recognised as the ASEAN Clean Tourist City Standard, with the award already presented in Laos during the ATF 2024. Freme Rainforest Lodge was recognised for its achievement in ASEAN Sustainable Tourism (Gastronomy Tourism – Rural).

Certificates of participation in Tourism Service Providers Enhancement Programme 2023 were also presented to five participants – Eco Ponies Garden, Labi Coffee Farm, Lamin Warisan, Mori Farm and Roda Impian Cruise.

The programme, launched by the Tourism Development Department, aims to assist TSP in improving their products and services to meet higher standards. Its goals include establishing a distinctive selling point for providers and enhancing the value and personalisation of visitor experiences.

Salinah said, “The ASEAN Tourism Standards integrate and adapt various existing international and national standards, best practices and guidelines, as well as ASEAN member states’ protocols, to reflect common regional parameters. It recognises and rewards recipients of their exceptional service that is intended to set the standards of what is attainable and desirable in the competitive global tourism market.

“Over time, this will contribute to an overall improvement in industry standards as we work collaboratively towards mutual objectives.”

Looking at travel trends for 2024, according to Conde Nast Traveller, she added, “Travellers will be valuing deeper experiences that leave a positive impact on the environment, time spent with loved ones and wellness moments that last well after checkout.

“They will be choosing destinations carefully, take the path less travelled, slowing it down to enjoy the silence and the stars, indulging in food at new and interesting places, immersing themselves in wellness and participating in sustainable activities.” – James Kon

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Borneo Bulletin is the leading English daily in the country. It was first published by Brunei Press. Today, Borneo Bulletin has become the foremost source of information on local and foreign affairs, and the region’s business news.

© 2013 Borneo Bulletin Online - The Independent Newspaper in Brunei Darussalam, Sabah and Sarawak