Tourism Continues To Drive Economic Growth, Travel Receipts Hit RM110.6 Bln In 2025

KUALA LUMPUR, Oct 9 (Bernama) -- The tourism sector's rebound continued to drive Malaysia’s economic growth, with travel receipts rising from RM95.4 billion in 2024 to RM110.6 billion in 2025, supported by higher foreign visitor arrivals.

According to the Economic Outlook 2027 released by the Ministry of Finance, foreign visitor arrivals rose 11.2 per cent to 42.2 million in 2025, while the travel component emerged as the largest contributor to service exports, accounting for 39.8 per cent of the total.

The industry, which returned to pre-pandemic levels in the same year,  contributed 15.9 per cent of Gross Domestic Product (GDP) and supported about 3.7 million jobs or 22.1 per cent of total employment.

It also indicated that services exports grew 15.6 per cent to RM277.9 billion in the same year, while services imports rose at a more moderate pace of 7.7 per cent to RM272.6 billion, enabling Malaysia to record a services trade surplus of RM5.3 billion in 2025, its first surplus since 2011, compared with a deficit of RM12.6 billion in 2024.

Meanwhile, an assessment by the Ministry of Finance showed that every RM10 billion in foreign visitors' spending could generate an additional RM6.8 billion for the economy, resulting in RM16.8 billion in total gross output across 27 industries

“Primary tourism-facing industries generate the highest output totalling RM11.4 billion, mainly in the transportation and storage, restaurants, accommodation, and wholesale and retail trade,” according to the report.

However, increasing visitor numbers would not be sufficient to ensure the sector continues to deliver optimal returns to the economy, particularly amid market uncertainties and growing competition from regional destinations.

Therefore, greater emphasis should be placed on increasing visitor spending and length of stay, while attracting high-value segments including luxury tourism, healthcare tourism, ecotourism and business events.

These efforts need support from better connectivity, including direct flights, quality investments in tourism infrastructure and facilities, talent development, digitalisation, and sustainable tourism practices.

The Visit Malaysia 2026-2027 (VM2026-2027) campaign is among the strategies to leverage recovery momentum to generate greater economic value and develop a resilient and sustainable tourism sector over the long term.

-- BERNAMA