Encouraging Expectations for The Tourism Industry in 2026
Tourism Malaysia expects a strong rise in visitor arrivals as the country gears up for Visit Malaysia 2026, targeting 47 million visitors next year. Backed by better connectivity, wider promotions and improved tourism offerings, Malaysia has already recorded 28.2 million foreign visitors from January to August, a 14.5% year-on-year increase that surpasses pre-pandemic levels. With 40 million arrivals targeted for the current year, the momentum suggests that goal could be exceeded.
Tourism continues to be a major economic driver, contributing 15.1% of GDP or about RM291 billion, with one in every six ringgit in the economy linked to tourism activities. Of current foreign arrivals, 63% are overnight tourists who stay longer and spend more. Singapore remains the largest source market, followed by China, Indonesia, Thailand and India, with Indian arrivals nearly doubling compared with 2019. Malaysia is also among ASEAN’s top performers alongside Vietnam in post-pandemic tourism recovery.
The country now has more than 5,300 hotels with 350,000 rooms, recording a 54.1% occupancy rate in the first half of 2025. Domestic tourism remains strong, accounting for 64% of hotel guests and 48.7 million stays. Looking ahead, the government aims to generate RM329 billion in foreign tourism receipts by 2026, while promoting niche segments such as luxury, wellness, cruise and Muslim-friendly travel, supported by digital marketing and social media to reach new travellers.
Global Travel Staged Massive Rebound
Over the past few years, global travel has experienced a powerful rebound, often described as a post-pandemic travel boom. After borders reopened, pent-up demand from travellers who had delayed holidays for years was released almost at once. People prioritised experiences over material spending, leading to a surge in leisure travel, family visits, and long-haul holidays. Many destinations not only recovered to pre-2020 levels but, in some cases, surpassed them within a short period.
In Southeast Asia, countries such as Malaysia, Thailand, Vietnam and Indonesia benefited strongly from this rebound. Improved air connectivity, the return of international flight capacity, and policies like visa-free entry for key markets accelerated arrivals. Short-haul travel within the region grew especially fast, driven by neighbouring countries and cross-border day trips, while long-haul visitors from China, India and Europe steadily returned as confidence improved.
Digital influence also reshaped the boom. Travel inspiration increasingly came from platforms like TikTok, Instagram and YouTube, pushing lesser-known destinations, food tourism and lifestyle experiences into the spotlight. Travellers stayed longer, mixed work with leisure, and spent more on experiences such as wellness, nature, culture and premium accommodations. This shift helped tourism once again become a major contributor to national economies, employment and small businesses.
Overall, the past few years marked not just a recovery, but a structural reset of travel demand. Tourism returned stronger, more experience-driven and more digitally influenced than before, setting the stage for ambitious national campaigns and record-high visitor targets heading into the next few years.
Malaysia’s Been Winning on All Fronts for the Past Few Years, Emerging as one of the Top Travel Destinations of the World
Over the past few years, Malaysia has experienced a pronounced travel boom as borders reopened and pent-up demand was released. Following a long period of restricted movement, both international and domestic travellers returned quickly, driven by leisure travel, family visits and postponed holidays. By 2023–2025, foreign arrivals had not only recovered but exceeded pre-pandemic levels, signalling strong confidence in Malaysia as a safe, affordable and diverse destination.
This rebound was fuelled by improved air connectivity, the restoration of regional flight capacity and policy measures such as visa-free entry for key markets, particularly China and India. Neighbouring countries, led by Singapore and Indonesia, continued to form the backbone of arrivals, supporting short-stay and repeat travel. At the same time, longer-stay tourists contributed higher spending, boosting hotel occupancy, retail activity and tourism receipts across the country.
Domestic tourism also played a critical role in sustaining the boom. Malaysians travelled actively within the country, supporting hotels, attractions and food and beverage businesses even before international arrivals fully normalised. This strong internal demand helped stabilise the sector and kept tourism-related employment resilient during the recovery phase.
As a result, tourism re-emerged as a major pillar of the economy, contributing a significant share of GDP and positioning the country for further growth. Led by Tourism Malaysia and supported by nationwide branding and digital marketing, the recent travel boom has set the foundation for ambitious targets under Visit Malaysia 2026, marking a shift from recovery to expansion in Malaysia’s tourism landscape.
What to Expect in 2026?
In 2026, Malaysia is expected to move from a post-pandemic recovery phase into a full-scale tourism expansion year, anchored by the Visit Malaysia 2026 initiative. With an official target of around 47 million international visitors, the year is positioned to be one of the strongest in the country’s tourism history. Strong momentum from 2024–2025, combined with aggressive international promotion, suggests arrivals could reach or even exceed these ambitions if regional and global conditions remain stable.
Air connectivity will be a major driver. More flight frequencies, restored long-haul routes, and deeper collaborations with airlines and online travel agencies are expected to make Malaysia more accessible than ever. Visa facilitation for key markets such as China and India, together with continued dominance from Singapore and Indonesia, should sustain high visitor volumes. At the same time, higher-quality tourists—those who stay longer and spend more—are expected to play a larger role in boosting tourism receipts.
Economically, 2026 is projected to be a peak year for tourism contribution. Foreign tourism receipts are targeted to rise sharply, reinforcing tourism’s role as a major GDP contributor and employment generator. Hotels, retail, transport, healthcare travel, and food tourism are all likely to benefit, while domestic tourism is expected to remain strong, providing a stable base even during seasonal fluctuations.
Strategically, Malaysia in 2026 will lean heavily into niche and higher-value segments. These include luxury and wellness travel, Muslim-friendly tourism, cruise tourism, long-stay programmes like Malaysia My Second Home, and digitally driven travel discovery. Led by Tourism Malaysia, the focus will increasingly shift toward digital platforms and social media to capture younger and experience-driven travellers. Overall, 2026 is shaping up to be a defining year—one that could reset Malaysia’s tourism industry at a higher, more sustainable level for the decade ahead.