Malaysia was among the world’s fastest-improving travel and tourism economies, with its score rising 5.8% between 2024 and 2026, according to the World Economic Forum’s (WEF) latest Travel & Tourism Development Index (TTDI).
Malaysia ranked fifth among the 10 economies with the largest TTDI score gains over the two-year period, behind Albania, Viet Nam, Laos and Qatar. Thailand and the Philippines followed in sixth and seventh place.
The 2026 index found that travel and tourism development conditions had reached their strongest level since 2019, with 101 of the 110 economies assessed recording improvements. The average score rose 2.1% from 2024, marking the fastest pace of improvement since 2019.
Japan topped the overall index with a score of 5.27, followed by the United States, Spain, Australia and France. Advanced economies accounted for nine of the top 10 positions, with China the only emerging economy in the group.
The WEF said improvements were driven by stronger cultural resources, tourism infrastructure and services, air connectivity and business travel.
However, the report warned that stronger tourism conditions were being accompanied by growing pressures on destinations. Travel became less affordable in three out of four economies between 2024 and 2026, while investment failed to keep pace with rising demand.
Labour shortages, rising costs, geopolitical tensions and climate disruption are also creating challenges for the sector, while pressure on infrastructure and local communities continues to increase.
“The next chapter is not simply about attracting more visitors, but it is going to be about creating greater value by investing in people, infrastructure and stronger public-private collaboration so tourism delivers lasting benefits for communities, businesses and destinations,” said Ramya Krishnaswamy, Head of Experience Economy and Cities at the WEF.
Emerging tourism economies have nevertheless continued to gain ground. Since 2019, the largest emerging economies have improved their TTDI scores more than twice as fast as the top 20 economies, with Asia-Pacific accounting for seven of the 10 fastest-improving performers.
Albania recorded the largest increase between 2024 and 2026 at 7%, followed by Viet Nam at 6.3%, Laos at 6.1% and Qatar at 6%.
The WEF said the index measures the underlying conditions that enable travel and tourism development rather than direct tourism performance such as visitor arrivals, spending or revenue.
The 2026 edition covers 110 economies across 17 pillars and 102 indicators and was produced in collaboration with Zurich Insurance Group.
