Lush jungles await luxury and adventure travellers alike

Home to unspoiled jungle habitats, unique and rich cultural heritage and miles of pristine sand beaches, all of which is supported by modern and efficient infrastructure, Brunei Darussalam has all the makings of an attractive holiday destination.

Belying a country of its size, the Sultanate boasts a wide variety of leisure options for visitors ranging from perusing its numerous museums and mosques to more adventurous pursuits including scuba diving and jungle treks. In addition, the well educated and amiable local population, along with the country’s stable and safe surroundings, also serve to put visitors at ease.

However, in spite of these advantages, the Sultanate remains something of an undiscovered tourism secret for a number of reasons. The government, for one, has not promoted the tourism industry as heavily as it has other sectors in its bid for economic diversification. Explanations for this vary, and there remains some concern from both the government and the public at large regarding the possible negative consequences and influence that a large influx of foreigners could bring to the relatively conservative society.

Numbers Game

The vast majority of tourism visits arrive by air via Brunei International Airport, which in late-2014 was in the midst of a complete makeover that will boost its capacity to around 400,000 travellers per year. Air arrivals totalled 224,904 in 2013, up from 209,108 in 2013, according to data from the Department of Economic Planning and Development (JPKE). Tourism was by far the largest segment of these arrivals at 38% with 86,599 visitors in 2013 and 82,996 the year prior. Other major arrivals include business travel accounting for 21%, transit passengers (12%) and visits to family members and friends (11%) while exhibition attendees numbered 1317, accounting for around 1% of arrivals. The majority of air arrivals come from the ASEAN member countries and account for 54% of all visits. This was followed by visitors from the East Asia region including China, Korea and Japan making up another 19% of the total. Visitors from further afield included Europeans, who contributed 10% of arrivals, followed by Australia and New Zealand combining for another 7%, Middle, West and Central Asia with 5%, and the Americas at 3%.

These numbers were further bolstered by cruise ship visitors, which numbered 45,560 from 24 port calls in 2013, up 40% over the 2012 total, according to Brunei Tourism, a division within the Ministry of Industry and Primary Resources (MIPR). Land arrivals from the Malaysian provinces of Sabah, Sarawak and Labuan and, to a lesser extent, Indonesia, make up the majority of visitors to the country although mostly not for the purpose of tourism. Meanwhile, overland arrivals totalled 3.01m in 2013, up from 2.97m in 2012, according to MIPR data, and are generally made for the purpose of visiting friends and relatives, shopping day trips, long-stay visitors and transient workers. Total arrivals from 2007 to 2013 increased at a compound annual growth rate (CAGR) of 7.26%, with overland arrivals comprising 92% of the total, followed by air arrivals at 7% and cruises, amounting to 1%.

Strong Traditions

Brunei Darussalam’s long and storied history stretches back to its maritime trading history with other ancient cultures within the region through the period of European colonisation up until the 20th century and the emergence of modern Brunei Darussalam as a Malay Islamic Monarchy (MIM) in 1984. The current MIM philosophy encompasses strong Malay cultural influences while stressing the importance of Islam in daily life and governance, and respect for the monarchy as represented by His Majesty the Sultan. As a result of these influences, both ancient and modern, the country houses a diverse wealth of historical and cultural attractions, many of which rank among the country’s most popular attractions.

“The strong historical background stretching from the 11th to the 15th centuries, including the old trade and commerce ties with China, Muslim Arabs and India as well as European merchant shipping companies, gave rise to the fusion of rich culture and traditions of Brunei Darussalam – complementing its natural offerings with a diverse culture and way of life,” Mariani Haji Sabtu, acting director of the Tourism Development Department within the MIPR told OBG.

Reflecting this popularity, the country’s Royal Regalia building built in the capital of Bandar Seri Begawan (BSB) in 1992 easily ranked as the most preferred attraction of all internal destinations according to polling data collected by the MIPR. A majority 51% of respondents chose the site, which displays royal regalia for the public including the royal chariot, gold and silver ceremonial armour, jewel-encrusted crowns and a replica of the throne. Established in 1965, the Brunei Museum was the second-most popular attraction, chosen by 20% of respondents. The museum houses a collection of artefacts from various periods in the Sultanate’s history including Borneo ethnography, natural history, Islamic art, glassware, ceramics, jewellery, tapestries, military artefacts and other displays.

Other highly ranked sites include: the Malay Technology Museum (9%) established to document, collect and exhibit examples of traditional Brunei-Malay lifestyle; the Oil and Gas Discovery Centre (7%) displaying the science and engineering workings of the oil and gas industry; and the Kampong Ayer Cultural and Tourism Gallery (6%) launched in 2009 to showcase the Kampong Ayer, or water village, which dates to the 10th century. Other popular historical and cultural attractions include the Brunei History Centre, Bumbungan Dua Belas, Brunei Arts and Handicrafts Training Centre, Tamoi Tengah, Sultan Omar Ali Saifuddien Mosque, Istana Nurul Iman (home to the Sultan) and Mausoleum of Sultan Bolkiah, among others.

Royal Accomodations

Brunei Darussalam has a wide arrange of accommodations available for guests, including a number of large international brands. In all there were 54 lodging options in 2013 offering a total of 4648 rooms in a variety of categories starting from apartments, guest houses and budget lodgings and ranging up to business hotels, international chains and luxury resorts, according to the MIPR. The most famous of these hotels is the 518-room Empire Hotel and Country Club, which includes marble columns, solid gold fixtures and Baccarat crystal. The average hotel occupancy rate for 2013 was 53% based on polling of 11 hotels by the MIPR, with a high of 70%.

Ecotours

In order to compete with regional powerhouse tourist destinations such as Thailand, Malaysia and Indonesia, Brunei Darussalam is also focusing on niche areas that make the most of its largely unspoiled natural habitats. These unspoiled attractions range from dense tropical jungles teeming with a wide variety of plant and animal life including the Bornean proboscis monkey as well as thousands of ha of natural coral reefs providing a veritable playground for all manner of activities such as mountain biking, whitewater rafting, rock climbing, sport fishing, wreck and reef diving and jungle hiking.

“One of the best selling points of Borneo is its natural biodiversity – being the host to one of the oldest rainforests in the world. In Brunei Darussalam we are consciously protective of our natural endowments and have therefore designated about 48,000 ha, or 41% of the total forests, to be conserved by the nation’s forestry acts under ‘protected forests’ and ‘national park’ categories,” Mariani told OBG.

One way the Sultanate is looking to promote its biodiversity is by marketing itself to the international bird watching community. The Brunei Tourism Development Department in conjunction with partners in Sabah and Sarawak have already invited members of bird watching clubs from around the region to visit Borneo starting in 2013 with another round of visits planned for September 2014. Seeking to build on these successful enterprises, the next step in this venture is to extend the project’s reach further afield to bird watching aficionados from the US and UK as well.

Popular sites for tourists seeking to explore Brunei Darussalam’s natural wonders include the Ulu Temburong National Park and the Kuala Belalong Field Study Centre, both of which offer visitors a variety of ecotourism and adventure activities as well as lodging. Other less populated rural areas such as Tutong and Bulai, which are currently under-utilised, could also benefit from increased tourism opportunities such as eco-tours, jungle treks, river journeys, bird watching, home stays and other activities.

Conservation

A crucial component to growing and maintaining the ecotourism niche markets is preserving the country’s relatively unspoiled environment for generations to come. Unlike other nations throughout the region, the Sultanate’s small and relatively affluent population has afforded it the luxury to preserve its unique natural habitats which have often fallen to the axe in other areas that are more dependent on the sales of resources for their export revenues.

In spite of importing the majority of its food, including more than 90% of its rice, Brunei Darussalam remains committed to forest conservation efforts by limiting the land available for agricultural development which is generally the largest occupier of land. At a May 2014 address to the Centre for International Forestry Research (CIFOR) Forests Asia Summit, the Minister of Industry and Primary Resources Pehin Dato Yahya Bakar reaffirmed the country’s green credentials by stating that the Sultanate would continue to limit agricultural conversion to just 1% of its land mass, preserving much of the rest for other uses afforded by healthy forest ecosystems. In addition, Brunei Darussalam is also partnering with Indonesia and Malaysia to conserve the “Heart of Borneo”, a 22m-ha area of forests and ecosystems across a broad, contiguous swath of Borneo. Due to ongoing efforts such as these, more than 70% of the land area is covered by primary rainforests with 39.12% of the country’s total landmass categorised as a forest reserve and 45.51% as state land, according to data from the Lands Department within the Ministry of Development (MoD).

Cruising

With the capability to bring in visitors by the thousands to Brunei Darussalam in one fell swoop, ocean cruises are currently the only mass tourism activity taking place there. Ranging in capacity from a few hundred people on smaller-scale luxury yacht cruises to the giant floating hotels shuttling up to 5000 guests at a time on full-size cruise liners, the cruise industry is one of the most efficient ways to introduce large numbers of tourists to the country at once (see analysis). Stays by these types of tourists are generally brief visits lasting from one to three nights, with much of the attention focused on sites and activities in and around the capital city of BSB. Passengers are able to disembark in the nearby Muara Port and take prearranged transport (generally buses) into the city and to nearby attraction although a number of bicycle rental shops have also opened in recent years for the more adventurous and independent travellers. Yet due to the lack of taxis and other urban transit options, independent travel for these visitors still remains somewhat limited. Infrastructure and support facilities for the cruise industry could also be upgraded in the coming years as the Muara Port expansion proceeds, although the exact changes to the cruise ship embarkation area has yet to be decided.

All Together

While Brunei Darussalam offers numerous unique attractions for tourists on its own, the Sultanate is looking to partner with its island neighbours in order to further capitalise on the history and culture of the island of Borneo as a whole. By combining their respective resources, Brunei Darussalam, Malaysia and Indonesia could offer tourists a diverse, multinational array of sights, sounds and activities to the benefit of all. In this manner the country can also capitalise on both its central location and modern infrastructure by serving as the gateway to Borneo.

Scuba diving in Sabah can appeal to some, the rich Islamic history and dramatic architecture of Brunei Darussalam’s mosques to others and river cruises in Kalimantan to another demographic. So far, cruise ships making port calls in Sabah, Sarawak and Brunei Darussalam are the only major transnational tourism ventures operating in Borneo although a number of smaller operations are beginning to take root. While a number of independent tour operators do offer set trips (primarily cultural and eco-tours) with different combinations of stops in Sarawak, Brunei Darussalam and Sabah, the majority stick in one area or another due in large part to the logistic challenges and underdeveloped land transport infrastructure linking these locations, with connectivity to Indonesia presenting the greatest challenge. Further complicating these collaborative efforts are difficulties in obtaining visas for some nationalities which are beginning to travel more such as Chinese, Russian and Taiwanese tourists.

In addition to working with other countries on Borneo package tours, the tourism industry has also teamed up with national carrier Royal Brunei Airlines (RBA) to roll-out its “two city” vacation package. The promotion packages short stays in Brunei Darussalam – generally one to three nights – on an extended layover to third-country destinations. Initially targeting the growing Chinese market, RBA rolled out the package in conjunction with agents in China for vacationers travelling from Hong Kong and Singapore to explore Brunei Darussalam en route to the resort destination of Bali in Indonesia starting in July b2014.

Beneath The Waves

Another category that has demonstrated a strong potential for growth is the scuba diving industry. The segment is already well developed and popular in neighbouring Sabah, but the sport is still in its infancy in Brunei Darussalam, with only a handful of diving outfitters located in the country. However, given the easy accessibility of port faculties from the airport and hotels in town as well as the ongoing discovery on new dive sites, scuba tourism could prove to be a significant draw in the future particularly if packaged with other scuba sites in neighbouring Sabah. In addition to its mostly unblemished 4500-ha coral reef reserve, a growing number of wrecks are being discovered in the tropical waters, including passenger ships dating back to 1900 and Second World War combat ships, and even the wreck of an oil rig sunk by Brunei Shell Petroleum in 1994.

Some of the more popular dive sites located within easy distance of BSB, each at depths less than 35 metres, include the wreck of a US Navy minesweeper, USS Salute, sunk in 1945; the Australian wreck of the converted troop carrier, SS De Klerk, which sank in 1942; the cement wreck of the MV Tung Hwang freighter, sunk in 1980; and the blue water wreck Mabini Padre fishing trawler, which sank in 1981.

Measuring Up

The culmination of Brunei Darussalam’s efforts to further develop the sector has resulted in a mid-level ranking in the Word Economic Forum’s Travel and Tourism Competitiveness Index 2013. The country ranked 72nd out of 140 participating countries in the report, down five spots from the 2012 index and placing in 13th out of 25 countries within the Asia-Pacific region. Its highest ranking came in the price competitiveness category in which the country ranked second behind only Iran. Other relatively high scores were for human resources coming in at 36, air transport infrastructure (45) and natural resources (53). Countering these rankings, Brunei Darussalam also has significant room for improvement in a number of areas. Chief among these was environmental sustainability, for which the country ranked 135th, followed by prioritisation of travel and tourism at 123rd, and policy, rules and regulation at 126th.

After significantly upgrading its air transportation infrastructure, the country is now looking at ways to improve its ground transport infrastructure which should ease travel for tourists within the country. Although the country ranked a respectable 67th in this category, independent travel still presents a significant challenge for tourists within the country.

“There are two things we need to improve upon in terms of infrastructure,” Mariani told OBG. “The first is public transportation where we are very weak in terms of the availability of buses and taxis. The other is enhancing signage in the country to better mark Brunei Darussalam’s tourist attractions for visitors.”

As of 2014 these plans were being addressed by the government via a variety of measures and coordination between the Tourism Development Department and other government bodies such as the Tourism Board, Departments of Transportation and Communication, the Road Safety Commission and others. In addition, public transportation is also being addressed in the creation of the new Land Transport Roadmap currently being drawn up and expected to be released to the public by the end of 2014. Another issue that could affect the policy, rules and regulations category of the index was the implementation of Sharia law in Brunei Darussalam, which was announced by the Sultan in April 2014. To be phased in over gradually over a period of years, the adoption of Islamic criminal law has resulted in a negative perception of the Sultanate in some spheres and has drawn criticism from a number of international rights groups. The silver lining to this media coverage is that the country has garnered support and interest from predominantly Muslim countries, including regional neighbours such as Indonesia and Malaysia, as well as Muslim individuals living in non-Muslim countries in the West.

Outlook

Brunei Darussalam’s concerted efforts to protect its intrinsic natural beauty, combined with its rich historical legacy and robust network of modern amenities and infrastructure, provide a strong base from which to grow its nascent tourism sector. Already a leading segment within the tourism sector as a whole, the cruise ship industry provides the Sultanate with perhaps its greatest single avenue to boost visitor footfall and dollars spent in country. If further developed, other niche categories such as ecotourism, bird watching, scuba diving, and trekking journeys could also prove to be strong draws, particularly if developed in conjunction with larger Borneo travel packages to include Malaysian and Indonesian components.