Malaysia’s Tourism Industry Grew 8.6% In 2025 To RM323 Billion, Contributes 15.9% To GDP

Malaysia’s tourism industry generated RM323.0 billion in value added in 2025, contributing 15.9% to the country’s gross domestic product, according to the Department of Statistics Malaysia (DOSM).

The tourism industry expanded 8.6% year-on-year, accelerating from 7.8% growth in 2024, supported by stronger domestic and inbound tourism spending.

Retail trade remained the largest contributor to tourism value added, accounting for 50.6%, followed by food and beverage activities at 16.4%.

Country-specific tourism characteristic services, including health-related activities and meetings, incentives, conferences and exhibitions, contributed 13.1%, while accommodation accounted for 9.3% and cultural, sports and recreational activities made up 4.3%.

DOSM said internal tourism expenditure, which comprises inbound and domestic tourism spending, increased 15.2% to RM236.9 billion in 2025 from RM205.6 billion a year earlier.

Inbound tourism expenditure rose 16.5% to RM124.8 billion, with tourists accounting for 95.6% of the total and excursionists contributing the remaining 4.4%.

Domestic tourism expenditure, meanwhile, increased 13.8% to RM112.1 billion.

Of the domestic total, tourists accounted for 58.3% of expenditure, while excursionists made up 41.7%.

The tourism sector also remained a major source of employment, with tourism-related industries employing 3.7 million people in 2025, equivalent to 22.1% of total employment in Malaysia.

Employment in tourism-related industries grew 3.5% during the year, compared with 4.6% growth in 2024.

The latest figures underscore tourism’s increasingly important role in supporting Malaysia’s domestic economy through consumer spending, services activity and employment.

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