With the global travel market set to grow $1.1trn by 2029, the pressure is ramping up for countries to take advantage this higher travel spend. Malaysia has its sights set on a large chunk of this market.
At current 15th place in the global tourism market, the country has launched a plan to attract 35.6m international visitors and $32.6bn in revenue in a new campaign called Visit Malaysia 2026. This plan could take the country beyond Thailand, current number one with 28.1m annual visitors, to become the top destination in the fiercely competitive market of Southeast Asian travel.
What are the top destinations in Southeast Asia?
Southeast Asia attracts huge numbers of visitors, primarily from other Asian countries like China, India, Singapore and Indonesia, as well as from Australia, USA and Western Europe. Here are the numbers:
Thailand – 28.1m international visitors in 2023 Malaysia – 26.1m international visitors in 2023 Singapore – 13.6m international visitors in 2023 Vietnam – 12.6m international visitors in 2023 Indonesia – 9.5m international visitors in 2023
The main source countries for each of those destinations are other Asian nations like China, India, Malaysia, Singapore and Indonesia. Vietnam manages to scoop a significant amount of business from the USA and Indonesia receives a large portion of Australian visitors due to the two countries’ proximity.
How does Malaysia plan to boost international visitors?
2024 brought unexpected success from the Indian market, with a 72% increase on 2022. Outbound travel from China also saw a huge resurgence, with a 136.5% increase, indicating a new confidence in Malaysia on the part of Chinese travellers.
The Malaysian government has earmarked $122m in its 2025 budget for tourism initiatives, such as supporting cultural programmes, hosting tourism events and promoting local traditions such as batik crafting and artisanship. In December 2024, Malaysia announced 10 new international flight routes, connecting Malaysian cities (such as Kuala Lumpur, Johor Bahru and others) with countries like Vietnam, India, Thailand and China.
Malaysia has also launched visa-free entry for Indian travellers in December 2023. As per the scheme, Indian nationals can stay in the country for 30 days visa-exempt until December 2026.
A market to watch
The Southeast Asian travel market is one to watch. Coming years will reveal how campaigns and external factors shape the leaderboards of one of the most popular tourism destinations in the world.
If Malaysia’s campaign pays off, it could enter the coveted top 10 destinations, populated mainly by Western European countries, USA and China.
