AI-driven smart tourism: Holidays beyond imagination in China and Malaysia

ARTIFICIAL intelligence (AI) has revolutionised the tourism industry.

The essence of smart tourism lies in integrating technology and innovation within the industry.

The key driver of future tourism is innovation, which encompasses intelligent, efficient, sustainable and inclusive growth.

According to the United Nations World Tourism Organisation (UN Tourism), global tourism revenue is projected to reach approximately US$19.9 trillion by 2030, with US$4.4 trillion generated from AI-driven tourism.

Notably, AI reshapes travellers’ journeys by providing seamless and personalised experiences.

Smart tourism tools assist in planning, booking, recommendations and customer assistance to ensure that the process is tailored to an individual's needs.

Moreover, AI in tourism has the potential to promote sustainability by reducing waste through digitalisation, such as replacing paper-based booking with online booking systems and managing visitation times to help reduce overcrowding.

China has been rapidly emerging as the global leader in smart tourism, where AI is extensively used to enhance and manage tourist destinations and experiences.

AI creates pathways for tourists to explore authentic history, cultural heritage, and local delicacies interactively.

In Beijing and Shanghai, AI glasses act as tour guides, offering travellers a real-time view of historical and cultural landscapes for a time-travel-like experience.

For instance, popular smart tourism applications such as Ctrip, Qunar, Fliggy and Tuniu have been widely used to plan trips, particularly to areas that may be unknown to most travellers.

The Chinese government further supports the development of smart tourism by offering unique, immersive and personalised experiences to travellers through the creation of tailor-made itineraries that cater to diverse preferences.

A virtual reality (VR) headset allows visitors to immerse themselves in the authentic landscapes of Tianjin, while augmented reality (AR) and VR enable tourists to experience China’s finest Buddhist art at the Mogao Caves in Dunhuang, Gansu Province.

This helps to preserve the museum by allowing wider access.

China’s digitalisation strategy successfully positions the nation as a global leader while advancing long-term sustainability in the tourism sector.

Compared with China’s highly advanced ecosystem, AI-powered smart tourism in Malaysia remains in an early stage of development.

Malaysia must accelerate its technological transformation to remain attractive and competitive.

Although Malaysia has begun its shift through the Smart Tourism 4.0 initiative, gaps in digital infrastructure, system reliability and industry capabilities remain pressing.

Issues such as app malfunction, payment errors and data integrity concerns hinder seamless travel experiences, creating barriers for digitally savvy visitors, particularly foreign travellers who expect seamless AI-enabled services.

To overcome these challenges, Malaysia must strengthen its digital infrastructure and improve system reliability to deliver a smooth tourist experience and build trust among users.

China and Malaysia’s shared goals in smart tourism

China and Malaysia share common goals in tourism, including promoting cultural tourism, sustainable tourism, and increasing visitor numbers.

The visa exemption agreement between China and Malaysia may ease travel restrictions for both countries, allowing more Chinese tourists to visit Malaysia and vice versa, thereby promoting regional integration and strengthening people-to-people ties and friendship between the two nations.

The use of AI tools can promote and attract travellers from both countries by providing seamless and safe travel experiences.

China’s advanced adoption of AI offers insights for Malaysia in enhancing smart tourism initiatives.

Drawing lessons from China, Malaysia can enhance digital transformation to build a more resilient tourism infrastructure and competitive position in the industry landscape.

This may allow Malaysia to attract up to 35.6 million visitors during Visit Malaysia 2026 through the visa-free extension initiative.

In light of the development of smart tourism, Malaysia can strengthen cross-border collaboration by integrating applications such as MyDigital ID for identity verification to be accepted in both China and domestically.

Leveraging Chinese social media platforms such as WeChat, Douyin, Weibo and Xiaohongshu to promote Malaysia’s cultural and natural attractions using immersive content is another avenue.

Malaysia can also improve AI-powered chatbots and virtual assistance to offer real-time translation services and personalised itineraries for a seamless travel experience.

Pathways to a sustainable smart future

The future of AI tourism is driven by hyper-personalised experiences, such as AI-powered travel assistants and personalised content. These tools assist travellers in handling all aspects of planning, booking by suggesting destination places, providing real-time weather forecasts, and suggesting hotels and flights.

Additionally, personalised content helps match destinations and activities with individual preferences or through their browsing history.

AI algorithms are also useful in predicting travellers’ demands and behaviour – for example, AI-powered chatbots that provide real-time interaction in handling enquiries, as well as AI-targeted advertising on social media platforms that deliver advertisements to the specific target group.

Sustainability is at the forefront of the tourism industry, where AI serves as a driving force in achieving greener and more responsible travel.

AI technologies enable smart resource management, such as optimising energy and water consumption in hotels, predicting visitor flow, and supporting eco-friendly transportation systems in developing smart cities.

AI-powered platforms in the tourism industry encourage travellers to choose and recommend sustainable hotels and eco-tourism destinations to foster a responsible tourism industry.

Beyond that, AR and VR transform exploration with virtual previews and interactive on-site experiences.

Smart tourism powered by AI is expected to continue enhancing travel experiences while contributing to sustainable tourism.

Thus, technology-driven innovation is vital to provide a seamless and attractive destination that enhances the travel experience.

Dr Mah Pei Yew is an Assistant Professor at Universiti Tunku Abdul Rahman (UTAR). The views expressed here are entirely the writer’s own.

The SEARCH Scholar Series is a social responsibility programme jointly organised by the South-East Asia Research Centre for Humanities (SEARCH) and Tunku Abdul Rahman University of Management and Technology (TAR UMT).