Journal of Contemporary Issues and Thought ISSN 2232-0032/ e-ISSN 0128-0481 / Vol 10, Issue 1, 2020 (36-45) 36 Rural Tourism Destination Strategy through SWOT Analysis in Kg. Kolosunan, Penampang, Sabah Fiffy Hanisdah Saikim 1 , Robert Francis Peters 1 , Nattana Simon 1 , Tracy Anak Angki 1 & Awangku Hassanal Bahar Pengiran Bagul 2 1 Institute for Tropical Biology and Conservation, Universiti Malaysia Sabah, Sabah 2 Faculty of Business, Economics and Accountancy, Universiti Malaysia Sabah, Sabah Email: fiffy@ums.edu.my DOI: https://doi.org/10.37134/jcit.vol10.4.2020 Cite this paper (APA): Saikim, F. H., Peters, R. F., Simon, N., Angki, T., & Pengiran Bagul, A. H. B. (2020). Rural Tourism Destination Strategy through SWOT Analysis in Kg. Kolosunan, Penampang, Sabah. Journal of Contemporary Issues and Thought, 10, 36-45. https://doi.org/10.37134/jcit.vol10.4.2020 Abstract Kg. Kolosunan is located upstream from Babagon dam in Sabah and currently gazetted as Babagon water catchment area. Since then, human activities on land and river within the vicinity of the dam has since been restricted by local authorities. This has affected local communities’ livelihood that has traditionally depended on farming and river fishing to source for food. Chosen as a pilot project for Payment for Ecosystem Services (PES) since 2015, this project aims to educate and gain support from the local communities to conserve the area. This paper explores the potential(s) of ecotourism in Kg. Kolosunan as an alternative livelihood for the local community which were affected by resource use restriction due to the gazettement of the water catchment area. Data collections were done through survey, in-depth interviews analyzed using SWOT analysis and finally from previous reports. Results showed that the existing ecotourism in Kg. Kolosunan has the potential to be developed as a sustainable ecotourism site. SWOT analysis also identified the requirement management strategies to improve tourism development in Kg. Kolosunan. Keywords: Kg. Kolosunan; Ecotourism; Alternative Livelihood; SWOT Analysis 1. Introduction The Babagon dam is a concrete rockfill dam with embankment height of 70 metres and a length of 325 metres with a total of the catchment area is 30 square kilometers, is located on the Babagon-Tampasak River about two kilometers upstream from the confluence with Moyog River, one of the major rivers in the Penampang district (Yong, 2000). The Sabah State government stressed that Babagon dam was for state development and managed by JETAMA Sdn. Bhd., the concessionaire of Water Department (Yong, 2000; SDBEC, 2015). Thus, in the name of "public interest", it invoked the Land Aquisition Ordinance (Sabah Cap. 69) to acquire 169, 860 hectares (419, 732 acres) of land compulsorily. Babagon dam plays an important role primarily to supply clean water to residents around Kota Kinabalu. According to Water Department, the Babagon Dam covers a little less than a half (48.4%) of the whole water supply in Kota Kinabalu city (SDBEC, 2015). Currently, Natural Resources Organization (NRO) as the secretary for Water Resources Council is proposing declaration of catchment of Babagon dam as Water Conservation Area