The isolated Malaysian island of Layang Layang has a long-held reputation for the scuba-diving around it, but its single resort has just had its operating licence formally revoked, according to a government statement.
The island, part of the Spratly group in the South China Sea off Malaysian Borneo’s north-west coast, is also renowned as a seabird sanctuary. The resort on Swallow Reef included 86 guest-rooms and dive-centre, and had its own airstrip to connect it with Kota Kinabalu, 80 minutes away.
Malaysia’s tourism, arts & culture ministry (MOTAC) cancelled the operating licence of Layang Layang Island Resort as of 6 January, citing a violation of tourism legislation though without specifying the precise reason for its action.
MOTAC tourism commissioner Roslan Abdul Rahman stated that the ministry took a serious view of “any breaking of the law by licensed tourism operators, to safeguard the welfare and interests of the people”.
No-refunds policy
Last April Scuba Diver reported that state authorities had warned the resort about its failure to return 50% deposits paid by more than 100 overseas and Malaysian divers who had been prevented from visiting by Covid-19 lockdowns. They had not only been denied their money back but had received no responses to their communications.
In November 2023 the resort had stated that it was no longer able to operate because a licence had not been granted and so, in view of its “no-refunds policy”, it would not be returning any deposits. The resort‘s representatives were said to have avoided all efforts to have legal claims served on them, and to have ignored a tribunal notice to comply issued in March 2024.
According to news outlet Free Malaysia Today three local tourism agencies in particular, Dreamy Island Holidays, Kudat Scuba Resorts and the Kekung, had been faced with significant financial losses by the situation.
Between them they were said to have paid the resort more than 272,000 Malaysian ringgits (around £48,500) for reservations made between 2020 and 2022.
Also on Divernet: Wetpixel’s Hanlon denies sitting on divers’ cash, Shark-dive operator brings libel suits against clients