≡-Malaysia Travel Sector To Become One Of The Country’s Top Economic Engines In 2025 With Over RM332 Billion In Output, Over Three Million Jobs, And More Than Eleven Percent Of Total GDP Driven By Strong Regional Demand – Viral of Today

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Home » TOURISM NEWS » Malaysia Travel Sector To Become One Of The Country’s Top Economic Engines In 2025 With Over RM332 Billion In Output, Over Three Million Jobs, And More Than Eleven Percent Of Total GDP Driven By Strong Regional Demand Thursday, June 19, 2025Malaysia’s travel sector is on track to become one of the country’s leading economic engines in 2025, with over RM332 billion in projected output, supporting over three million jobs, and contributing more than eleven percent of the national GDP. This growth is driven by a powerful surge in regional travel demand, especially from neighboring countries like Singapore, Indonesia, and China, combined with rising domestic tourism and strategic government investments that are helping the sector outpace its pre-pandemic performance.Malaysia’s travel and tourism sector is on track for a major revival in 2025, with projections showing it will generate RM332.2 billion, accounting for over eleven percent of the nation’s GDP. This strong comeback highlights growing demand from neighboring markets, renewed enthusiasm from domestic travelers, and ongoing investments in upgrading tourism infrastructure across the country.Compared to the RM218.9 billion contribution in 2024—roughly ten point one percent of GDP—this new figure shows a dramatic leap forward. Even more strikingly, it marks an eighteen percent jump over pre-pandemic 2019 levels, signaling that Malaysia’s tourism sector has not only recovered but is growing past its former thresholds.Jobs Surge as Industry Becomes Economic PowerhouseEmployment stands at the heart of Malaysia’s tourism resurgence. By 2025, the industry is expected to sustain over three point five million jobs, opening vast opportunities in areas such as hospitality, transportation, dining, and entertainment. Looking ahead to the next decade, projections indicate the creation of another eight hundred and sixty thousand positions by 2035—further reinforcing tourism as a vital source of income and economic stability for communities across the nation.The sector’s continued expansion at a compound annual growth rate of three point eight percent through 2035 will serve as a consistent source of opportunity. From big cities to remote towns, tourism-related job creation is expected to be widespread, helping bridge urban-rural income gaps and enhancing community resilience.Neighboring Countries Driving Visitor ArrivalsA significant driver behind Malaysia’s tourism resurgence is the steady influx of travelers from neighboring countries. By 2025, five nearby nations are anticipated to account for the majority of international visitor arrivals, forming the core of Malaysia’s inbound tourism growth.Singapore leads the pack with thirty-six percent of total inbound travelersIndonesia contributes fifteen percentChina brings in thirteen percentThailand accounts for seven percentBrunei represents five percentThese countries remain vital to Malaysia’s short-haul tourism market, benefiting from close geographic proximity, cultural ties, and improved cross-border connectivity. Direct flights, visa facilitation, and marketing initiatives have all played a role in driving this growth.Outbound Travel Patterns Remain StrongMalaysian residents are also eager to explore. Outbound travel continues to flourish, with top destinations including:Thailand, capturing thirty-six percent of outbound travelersIndonesia, with twenty-one percentChina, drawing six percentThese figures underscore the importance of regional tourism exchange in Southeast Asia, especially for short breaks and family vacations. Strong two-way travel flows are a healthy sign of regional cooperation and shared growth.Spending Habits Point to Balanced RecoveryTourism spending in Malaysia is split almost evenly between foreign and domestic travelers. International visitors are projected to contribute fifty-two point two percent of total tourism revenue in 2025, while local travelers will account for forty-seven point eight percent.Leisure remains the dominant driver, making up eighty-seven percent of all travel activity. Business travel represents the remaining thirteen percent, though corporate trips are also expected to grow as regional conferences, trade expos, and international meetings return to pre-pandemic levels.Projected Spending Growth Through 2035Tourism revenue in Malaysia is on a clear upward trajectory. By 2025, international travelers are projected to spend over RM117 billion, with that amount forecasted to climb to nearly RM170 billion by 2035. Domestic tourism is also set to grow steadily, with spending expected to reach over RM106 billion in 2025 and surge to approximately RM158 billion within the next decade, signaling sustained growth across both local and international markets.These upward trends confirm that tourism will remain a vital revenue generator, not just for businesses in major cities, but also for smaller towns and heritage-rich rural areas.Major Contributions to Government RevenueTourism also contributes significantly to government coffers. In 2023 alone, the sector generated USD9.8 billion in tourism-related taxes, equivalent to fifteen point three percent of total government income. This consistent fiscal input helps support national development programs, infrastructure upgrades, and community initiatives.A Sector Balancing Growth with SustainabilityEven as tourism expands, Malaysia is making strides to address environmental concerns. While the sector’s greenhouse gas emissions intensity is slowly declining, fossil fuels still supplied ninety-three point seven percent of its energy needs in 2023. The push toward renewable energy and sustainable tourism practices will be key in future planning.Inclusion and economic advancement continue to shape Malaysia’s tourism workforce. By 2023, women held forty-three point two percent of all positions across the sector, highlighting strong female representation. Youth participation stood at fourteen point one percent, reflecting the industry’s role in engaging the next generation. Meanwhile, fifteen point four percent of tourism-related jobs fell within high-income categories, underscoring the sector’s ability to provide meaningful career growth and long-term financial opportunity.Malaysia’s Global Standing Rising FastWith increasing international interest, strategic marketing campaigns, and targeted investments in airports, digital technology, and tourism infrastructure, Malaysia is set to become a leading travel destination in Asia. New air routes, contactless services, and diversified attractions are helping the country attract both first-time and repeat visitors.As global travel stabilizes post-pandemic, Malaysia’s natural beauty, diverse culture, and reputation for hospitality continue to stand out. From tropical islands and rainforests to vibrant cities and food-rich towns, the country offers experiences that match every type of traveler’s interest.Long-Term Outlook Remains PositiveLooking ahead, the WTTC anticipates that Malaysia’s travel and tourism sector will continue its upward climb. Continued partnerships with regional markets, investment in digital transformation, and green energy transitions will ensure that the sector remains resilient and competitive.Malaysia’s travel sector is set to become a key economic driver in 2025, generating over RM332 billion, supporting over three million jobs, and contributing more than eleven percent of GDP—fueled by strong regional demand and sustained tourism investment.With strong foundations in place, Malaysia’s tourism economy is not just recovering—it’s evolving. By 2025 and beyond, it is expected to serve as a national growth engine and a model for sustainable, inclusive tourism in Southeast Asia.

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