Tourism development plays an important role in enhancing economies.The purpose of this research is to identify the perceptions of residents in the Mabul Island towards the impacts of tourism development. Two different community respondents were selected using a random sampling technique to complete a survey instrument. Personal observation was also carried out to observe the nature of host-guest interactions at this area. Model suggested by Butler 1975 use in the present study was valid and reliable in predicting host residents' interactive behavior with tourists.Survey findings reveal that Suluk People at stage "Passive-positives: passively agreeing with and accepting something" toward tourism development.For Palao people, they are in stage "Passive-negative: resigned acceptance of something one disagrees with," however they still view the tourism more in a positive way.

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