Paula & I went to Lankayan in March 2004. Wonderful base on a typical tropical island. Lived in individual beach huts with en-suite; and all ate together in communal dining room. Clean, cheerful & wonderful service.
It was a nightmare to get to though - nearly 2 hours beating into a heavy swell in a small boat from the mainland. Good thing they put all our baggage into black plastic sacks!
Not much to do on Lankayan if you're not a diver though - it takes 3 mins to cross it in one direction, & 5 mins the other way (or 20 mins round the beach!). BUT, we did see turtles come in to lay eggs at night, which were collected by the staff for incubation. AND we were lucky enough to see a hatch, & some 100 or so babies heading for the sea (guarded from predators by ourselves)!
As to the diving - it was well organised by the local guides, who were always around to point out the macro stuff. This is an ideal spot if you are into macro photography, by the way. All the reefs seem to be not more than a 15 min boat ride, and all are small, rising from a sandy floor. Depths were from 10m down to only 20m. There were no big fish of any kind - but we saw ghost pipefish, jawfish, bamboo shark, coral shark, black-tips - and endless anenome fish of all types. Shoals of jacks & bonito abound, as do batfish & barracuda. There is a home reef just off the jetty, together with 2 or 3 sunken trawlers just off the shore in 10m or so.
This is very tame but beautiful diving. I wouldn't recommend it as a destination for it's own sake - but tacked onto the end of a holiday in Borneo; or as a destination for a beginner to gain confidence in a safe environment, it is superb.
We enjoyed it. Robert & Paula.
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