The new Islamic government in Malaysia's north-eastern state of Terengganu has said foreign tourists should be sensitive to the local culture or else steps will have to be taken to keep them in line.

Tourism is an important source of revenue for the state, and some in the industry fear moves to segregate the sexes and limit the sale of alcohol will scare away visitors who have come to Terengganu for beach holidays.

Even traditional cultural dance shows have been discouraged by the new Islamic government, which objects to what it calls "the free mixing of the sexes".

Alcohol sales to tourists may also become a problem because the government has only authorised eight outlets in the whole state to sell alcohol to both the local Chinese community and tourists.

According to the state government, foreigners come to Terengganu for the local scenery and natural beauty of its islands and beach resorts, not for alcohol.

But hotel managers say their guests regard drinking as part of the relaxation of a holiday.

Islamic policies

Terengganu is ruled by the Islamic Party, or Parti Islam SeMalaysia (Pas), which also controls neighbouring Kelantan.

The chief minister of Terengganu, Abdul Hadi Awang, said tourists must bear in mind the sensitivities of local people or else steps would have to be taken to control them.

Asked if his Islamic policies wouldn't put off tourists, the chief minister said Iran and Saudi Arabia were still popular tourist destinations despite their Islamic laws.

Local people who voted for Pas in large numbers say they do not like to see scantily-clad women.

Female tourists said they felt uncomfortable with people staring at them because they were wearing shorts or sleeveless tops, and one French couple said they were cutting short their trip to Terengganu as a result of the atmosphere.