Tourism Sector Expected to Account for 10.9% of Malaysia’s GDP in 2025
According to recent data from the World Travel & Tourism Council (WTTC), the tourism sector is expected to contribute 10.9% to Malaysia’s GDP in 2025, amounting to 218.9 billion ringgit. The tourism sector’s GDP contribution ratio is expected to increase to 11.3% by 2035. Additionally, tourism jobs are expected to account for 15.7% (2.7 million people) of Malaysia’s total employment in 2025, rising to 18% (3.5 million people) by 2035.
Tourism Malaysia has partnered with global technology brand Honor to promote the country’s cultural and natural beauty ahead of Visit Malaysia 2026. The collaboration will feature mobile photography competitions, workshops, exhibitions and cultural events.
Malaysia launched a major campaign to attract more Thai travelers ahead of Visit Malaysia 2026 (VM2026), promoting the country as top destination for sustainable and inclusive travel experiences. Malaysia sees 20% surge in tourist arrivals in Jan-May 2025, boosted by China, India.
Malaysia Selected as No.1 Muslim-Friendly Destination
According to GMTI* 2025, Malaysia retained its long-standing position as the number one Muslim-friendly destination within the Organization of Islamic Cooperation (OIC). With its robust Halal infrastructure, diverse culture, and seamless integration of Islamic values into public life, Malaysia remains a global leader in Muslim travel readiness.
Turkey, Saudi Arabia, and the United Arab Emirates were jointly selected for 2nd place. Among non-OIC countries, Singapore was selected as No. 1, with its well-established halal food network and active efforts to meet Muslims’ needs being the main reasons for top selection. Following Singapore, the UK, Hong Kong and others were selected.
*Global Muslim Travel Index (GMTI): An annual report that benchmarks destinations in the Muslim travel market. Developed through collaboration between Mastercard and Crescent Rating, this report analyzes over 100 destinations worldwide to assess their readiness for halal and Muslim-friendly travelers and ranks countries accordingly.
Foreign Tourist Arrivals to Malaysia Increased by Over 20% Through May This Year
Malaysia recorded an over 20% jump in tourist arrivals for the January to May 2025 period, driven by government strategies such as the Visa Liberalization Plan, targeted industry incentives, and digital and airline-based promotional campaigns. International tourist arrivals during the five months reached 16.94 million, according to the Tourism, Arts and Culture Minister (MOTAC).
Singapore remained the top contributor to Malaysia’s international tourist arrivals, with 8.34 million visitors up 26.5% year-on-year (y-o-y). This was followed by Indonesia’s 1.82 million visitors, up 10.3% y-o-y; China’s 1.81 million visitors, up 38.8% y-o-y — marking the highest growth rate among key markets; Thailand’s 1.06 million visitors (increased 5.2%); and India’s 664,811 visitors (increased 32.0%). Among these, the increase in tourists from China and India was particularly significant.
Source: Korea Tourism Organization Data Lab, “(Malaysia) July Tourism Market Trends” and “(Malaysia) August Tourism Market Trends” published by Kuala Lumpur Office of Korea Tourism Organization
Tourism Scope 