Property developer Mah Sing Group Bhd (8583) is mulling over plans to build hotels and resorts in Kota Kinabalu, a project pegged on Sabah's reputation as a tourist attraction.

It is learnt that the company may build four- and five-star hotels, a resort and houses that will command a gross development value of around RM1 billion.

Mah Sing is mulling developing the properties with private landowners in Sabah, but it will hold majority stakes in the venture, a source said.

Company officials who spoke on condition of anonymity said the plan for a tourism project in Sabah is still preliminary.

"We are happy to explore all possibilities, but our plate is currently full with 16 projects," the official said.

The 16 projects are in Penang, Johor and in the Klang Valley, lasting it another five years. The remaining GDV and unbilled sales is RM3.9 billion.

The proposed Sabah project comes at a time when the state's tourism sector is booming despite a slowing economy.

There are only a few hotels and resorts in Sabah to accommodate for the expected higher growth.

Sabah's projection for 2010 is 3.4 million visitors, with tourism receipts exceeding RM6.5 billion.

Chief Minister Datuk Seri Musa Aman said last year that the growth in tourist arrivals per year in Sabah is projected to be above 20 per cent over the next five years.

According to statistics by the Sabah Tourism Board, the state received 2.48 million visitors in 2007, a fivefold increase over 1998's figure of about 400,000.

For the 10 months to October 2008, it had 1.88 million visitors.