Conservationists have long realized the importance and potential of binding conservation with service-based livelihood strategies for local communities. For regions suffering from unsustainable land-based development, establishing a prosperous tertiary sector can be a potential avenue for shifting the development pressure away from land exploitation to alternative eco-economic activities that prioritize conservation. Alongside primary and secondary production activities, multiple conservation-related economic opportunities like eco-tourism can be featured. This has been found to assist local development in many cases around the world and can be particularly instrumental in places facing imminent threats of resource extraction or agricultural expansion (Das and Chatterjee 2015).

In the case of Borneo, the service sectors contributed the highest percentage to the regional GDP in the past few years (except for East Kalimantan) as displayed in Figure 5.1. Specifically, the development of the tourism industry has been widely considered a useful policy instrument for achieving the dual goals of poverty eradication and conservation, especially for communities surrounding ecologically important areas. Eco-tourism businesses have always been important income sources for Borneo, especially Sabah, ranging from highly commercialized packages to rural homestay programmes (STB 2020). Notably, business opportunities that are labourintensive, unspecialized, and take advantage of local natural assets are the major foci, including tour services, transportation, accommodation, food, handicrafts, and cultural performances. This strategy not only supports conservation by providing alternative income sources but also can instil a sense of nature appreciation and community ownership.

Further expanding the service sectors beyond eco-tourism and creating more “green jobs” in this space for local communities could be a strategy to steer rural development onto a more sustainable pathway. Opportunities include environmental restoration projects, agricultural and forestry services, as well as waste management businesses with new income opportunities that grow upon healthy landscape management. These services are important to repair previous damage and fix current unsustainable practices.

This chapter is divided into two major parts: eco-tourism and eco-based services. For each part, overviews of the sector are provided. These are then followed by a discussion about the infrastructure and investment required to develop specific eco-based service sectors in Borneo.