For VM2026, the country has set an ambitious target of 43 million visitors and RM329bil in tourism revenue.
THE Visit Malaysia 2026 (VM2026), theme “Surreal Experiences” is a cornerstone national initiative to boost domestic tourism and generate wider economic benefits.
It aims to attract 43 million visitors and generate RM329bil in tourism receipts or 15.5% of gross domestic product (GDP) in 2026 compared to 2025’s target (43 million visitors and RM216bil tourism receipts or 10.7% of GDP).
The target for 2025 is highly achievable as total number of visitors have reached 38.3 million (24 million tourists) in the first eleven months of 2025.
VM2026 marks the fifth campaign since the first Visit Malaysia Year was launched in 1990 (1994, 2007, 2014).
In preparing for VM2026, expenditure allocations for the tourism sector amounted to RM400mil in Budget 2025 and over RM700mil in Budget 2026, including RM500mil for the VM2026 campaign.
Past Visit Malaysia Year campaigns have successfully boosted the tourism sector. It not only reflected in higher international tourists and tourists’ receipts but also generated significant positive impact on domestic tourism as Malaysians also made trips to tourist attractions following all year-round promotional activities.
A notable mentioned was the VMY 2014, which had achieved the highest-ever tourist arrivals (27.4 million) compared to 25.7 million in 2013.
The domestic tourism sector is one of the major economic engine of the Malaysian economy.
Post the Covid-19 pandemic recovery, total value-added output (both direct and indirect) of the tourism sector had rebounded and surpassed pre-pandemic levels in 2018-2019.
It generated an average of RM281.9bil per year in 2023 to 2024 or an average share 15% of total GDP (an average of RM230.2bil per year or 15.5% of GDP in 2018 to 2019).
Tourism employment made up 21.6% of total employment or 3.5 million persons in 2024.
The sector is also a major foreign exchange earner, generating RM81.7bil per year in 2023 to 2024 (an average share of 4.3% of GDP) compared to RM80.7bil per year in 2018 to 2019 (an average share of 5.4% of GDP).
In January to September last year, tourism’s foreign exchange earnings amounted to RM79.4bil or 5.3% of GDP.
The tourism sector’s value-added output has demonstrated robustness, growing by 13.8% per annum in 2022 to 2024, higher than 9.7% per annum in 2015 to 2019.
The strong recovery was in line with the global trends, driven by pent-up demand, visa-free facilities, improved connectivity, and strategic promotions.
In 2024, the top four sub-sectors of the overall tourism sector were retail trade (RM154.5bil; 52.9% share of total), followed by food and beverage services (RM47.7bil; 16.3%), country-specific tourism characteristic services (RM39bil; 13.3%), and accommodation services (RM20.4bil; 7.0%)
Overall, although the average length of stay per tourist in Malaysia was lower at 5.1 nights in 2024 (an average of 6.2 nights in 2015 to 2019), expenditure per capita has increased.
In 2015 to 2024, within the tourists coming from the Middle-East, the United Arab Emirates has emerged top in expenditure per capita (plus 5.4% per annum to RM12,299 in 2024 versus RM7,637 in 2015).
Within the grouping of Americas, Europe and Oceania, tourists from the United Kingdom have the highest spending per capita (plus 5.3% per annum to RM7,039 in 2024 vs. 2015: RM4,404).
In Asia, China tourists had recorded higher expenditure per capita (plus 7% per annum to RM6,291 in 2024 versus RM3,419 in 2015).
Within Asean, Philippines tourists’ expenditure per capita increased by 5% per annum to RM4,321 in 2024 compared to RM2,783 in 2015.
By tourists’ expenditure component in 2024, shopping continued to be the largest expenditure category (RM37bil or 36.1% of total spending), followed by accommodation (RM19.3bil or 18.1%), food and beverage (RM16.2bil or 15.9%), purchases of international airfares (RM8.7bil or 8.5% of total), local transportation (5.7%), and medical tourism (4.7%).
The tourism sector is competitive globally and within the region like Asean.
Public-private partnerships and collaborative actions are crucial in transforming Malaysia’s tourism industry, and hence sustained efforts beyond the Visit Malaysia Year campaign are vital to foster long-term tourism success.
Malaysia has garnered significant recognition and numerous accolades, establishing itself as a premier travel destination.
Last year, Malaysia was ranked as top the Muslim-friendly destination for ten consecutive years since 2016; Kuala Lumpur as the 10th highest international arrivals city in 2025; voted as best destination for meetings, incentive, conference and exhibitions in the World Tourism Awards 2025; and one of the world’s top destinations for medical tourism, and also Unesco heritage sites.
Malaysia has been consistently ranked in the top 15 to 20 globally for visitor arrivals, particularly strong in South East Asia. In 2023, Malaysia was ranked as the second top tourist destination in Asean, clocking in 20.1 million tourists (29 million visitors).
In January to November last year, Malaysia already secured 38.3 million visitors and 24 million tourists.
The government has been drawing up initiatives and programmes not only to cement Malaysia position as a premier South-East Asian tourism hub but also in the world’s tourist destinations.
The National Tourism Policy (2020-2030) aims to place Malaysia in the world’s top 10 destinations for arrivals and revenue.
Key actions and initiatives to drive robust tourism cover targeting countries for tourists (visa-free entry for several nations like China and India), data driven marketing strategies using digital platforms like social media and influencers).
With the appointment of popular China actress Fan Bingbing as a state tourism ambassador, it has boosted Melaka’s digital image among tourists from China.
Tourism products augmentation (experiencing, eco-tourism, adventure tourism, youth tourism, sports tourism, cultural and heritage tourism, community-based tourism, wellness tourism) and a blend of culinary experiences that mix local traditions with international appeal is a key factor.
On the flight routes and increased frequencies, the cabinet committee on Tourism and Culture approved 103 new flight routes, 29 increased frequencies, and chartered flights for VM2026.
Airlines are adding routes to cities and key markets like China (Xiamen, Kunming), Europe (Dubai, Jeddah, Frankfurt, UK), and other Asian hubs, significantly boosting connectivity through airlines like Malaysia Airlines and AirAsia to attract global tourists and meet the goals of the tourism campaign.
The government must strengthen tourism ecosystem through tackling industry stakeholders’ pain points (such as manpower shortages, streamlining bureaucracy, lack of capital and technology pressures), strategic policies and investments. Industry stakeholders should transform operating models, especially the digitalisation of small and medium enterprises.
Actions and priorities for sustainable tourism development are consistent marketing, strategic infrastructure and connectivity (all transport modes), heritage and cultural branding, technology and digitalisation enabler, and global as well as regional engagements.
Continuous initiatives help maintain Malaysia’s destination visibility, build lasting relationships with frequent and new visitors, and ensure a resilient and thriving tourism industry year-round.
We must focus on enhancing international connectivity, consistent marketing, diversifying tourism products and building a resilient ecosystem that benefits both businesses and communities.
Tourism is not about promotion. Instead of relying on “big do” during the Visit Malaysia Year campaign, it must be a consistent, and “always-on” marketing approach that helps to build brand royalty, ensuring Malaysia remains top-of-mind for potential travellers and the must go destination in a competitive global market, not just during campaign periods.
A shift from purely product-focused campaigns to ensuring tourist satisfaction and managing sustainable development is another key factor.
Consistent marketing presence includes optimising diverse channels to promote Malaysia, with evergreen and timeless content about Malaysia’s attractions, culture, and experiences that consistently attracts and engages visitors over long periods.
Continuous investment and refurbishment of tourism infrastructure like transportation, accommodation, digital connectivity improves visitors’ experiences.
It is a unique and immersive journey that should aim to reawaken all the senses: personalised service holistic wellness programmes with authentic local experiences connection with nature to encompass sustainable and purposeful travel:
Airports are crucial tourist touchpoints. Digital tools can optimise airport passengers’ experience monitoring using real-time data from artificial intelligence, sensors, and social media to track movement, measure wait times, manage queues, and optimise staffing.
It is a commendable that the government has rolled out digital immigration facilitation through the minimize app, expanded auto gate access, and the Advance Passenger Screening System adoption to improve processing speed and visitor experience.
Efficient and smooth terminal connections are indeed vital for ensuring safety, reliability, and optimal performance for airport passengers.
The world’s top-ranked airports, such as Changi in Singapoe, Doha Hamad in Doha, Qatar, Tokyo Haneda and Seoul Incheon are renowned for reliable internal transport, efficient baggage handling, and excellent overall facilities.
To strengthen hotel-tourist connections, focus on personalisation, seamless technology, proactive communication, and local integration, offering tailored experiences from pre-arrival to post-stay.
Another key aspect of enhancing hotel and tourist seamless connectivity from point-to-point is allowing all luxury coach services to drop off passengers at hospitality and tourism locations, particularly for routes between Singapore and Kuala Lumpur, Ipoh and Penang.
Tourism products offerings must be regularly enhancing and diversifying tourism offerings — such as eco-tourism, diverse cultural and natural experiences, culinary attractions, and health tourism.
This will provide fresh appeal and encourage repeat visits. More recent efforts have included a push towards promoting sustainable and responsible tourism practices to preserve Malaysia’s natural heritage.
In addition to promoting multi-state hop packages; organise state-level culinary festivals and curated regional food trails to promote Malaysia’s culinary tourism.
Attracting visitors through organising concerts and musical festival is another crucial need as it can transform the event into a destination.
Under the 13th Malaysia Plan, new special tourism investment zones will be developed in Johor, Melaka, Negri Sembilan and Sarawak to serve as catalysts for the creation of new tourism products, including those based on artistic, cultural and heritage assets, as well as natural attractions.
Lee Heng Guie is the executive director of the Socio-Economic Research Centre. The views expressed here are the writer’s own.
