It's a new inn.
i went there to Semporna in May and stayed at Sipadan Inn.
Holiday Dive inn looks nice frm the outside (and reception area).
maybe worth a try..
Sipadan Inn SUCKS!!
DO NOT GO THERE.
the room is OK, but the service is not so much.
receptionist is not friendly at all and makes u feel awkward.

towards the end of my trip i stayed at Dragon Inn for RM77 for double room, with bfast!
Dragon Inn room is spacy and very nice..floating village.
only drawback is you have to walk abit to get to your room. not recommended for old people.

in Mabul i stayed at Arung Hayat and the food there is NICE. I mean REALLY NICE.
i'd definitely recommend arung hayat to anyone.

I'm planning to go to Semporna again via bus from tawau and it led me to this thread.

I went there the first time last year, stayed at Dragon Inn and then Arung Hayat in Mabul. I love Arung Hayat travel lodge, it's a decent place for budget traveller and most importantly they serve nice food. My friend just went there again early this month and agree that their food is good.

I came with another friend that time and took the RM95 minibus/van ride from airport - Semporna town. It's a decent airconditioned van and we had a pleasant ride.

I'm a diver and i have dived in Mabul area and also islands from Semporna IE: Timba-timba, Pandanan, Mataking..etc.
I can say that Mabul - Kapalai has aloooot of fish and bigger fish than peninsular malaysia islands..as for corals..go for islands like Timba2, Mataking there..not much fish but amazing corals..

As for snorkelling, i dont think u can see much there, unless if u're lucky..u can see turtles (most of the time can see when diving), school of cuttlefish, etc..which is not bad, from my experience..but u have to be patient.

I went there after being a diver for 1 year and i enjoyed the dive sites very2 much. In the early days of diving, i dont enjoy so much as i'm still getting used to the skills..so..I really don't think getting a license there would be good as you might not be able to enjoy the dive so much..especially going to Sipadan..if u can wait till you're confident and comfortable underwater..110%!

I haven't been to Sipadan coz of some mess made by my agents on the permits..so if u can get a diveshop with guaranteed permit! I do not regret it so much as it's my first time there..i end up doing more dives than i planned! (planned for 9 dives inc Sipadan, became 16 dives in Semporna/Mabul, which is an unforgettable experience).

As for seafood, i'd highly recommend rabbit fish!! please dont forget to try that fish when u're in Semporna. I have 1 seafood restaurant which serves very nice food not far from Seafest Hotel, but i cant remember the restaurant name!!

If u come from the jetty/Dragon Inn, pass by Seafest..walk further more u can see a row of shop and this nice airconditioned restaurant. Surprisingly their price is not has high as u think it would be!