Tourism industry hits RM323bil, contributes 15.9pct to Malaysia's economy

KUALA LUMPUR: Malaysia's tourism industry generated RM323 billion in value added in 2025, contributing 15.9 per cent to the country's gross domestic product (GDP), according to the Department of Statistics Malaysia (DOSM).

The Tourism Satellite Account 2025 report showed that the industry expanded 8.6 per cent last year, up from 7.8 per cent in 2024, driven by strong demand from inbound and domestic tourism expenditure.

Internal tourism expenditure rose 15.2 per cent to RM236.9 billion in 2025, from RM205.6 billion a year earlier.

Inbound tourism expenditure accounted for 52.7 per cent of total internal tourism expenditure, while domestic tourism expenditure made up the remaining 47.3 per cent.

Inbound tourism expenditure surged 16.5 per cent to RM124.8 billion, compared with a 41.3 per cent increase in 2024.

Tourists accounted for 95.6 per cent of inbound tourism expenditure, while excursionists made up 4.4 per cent.

Domestic tourism expenditure also grew 13.8 per cent to RM112.1 billion, compared with 25.1 per cent growth in 2024.

Tourists accounted for 58.3 per cent of domestic tourism expenditure, while excursionists contributed 41.7 per cent.

Retail trade made up the largest share of tourism industry's value added at 50.6 per cent, followed by food and beverage at 16.4 per cent and country-specific tourism characteristic services, including health and meeting, incentive, conference and exhibition activities, at 13.1 per cent.

Accommodation contributed 9.3 per cent, while cultural, sports and recreational activities accounted for 4.3 per cent.

Meanwhile, tourism-related industries employed 3.7 million people in 2025, representing 22.1 per cent of total employment in Malaysia.

Employment in the tourism-related industries grew 3.5 per cent last year, compared with 4.6 per cent in 2024.

Retail trade was the largest contributor to tourism-related employment at 37.9 per cent, followed by food and beverage serving services at 36.7 per cent and country-specific tourism characteristic services at 10.5 per cent.

Together, the three subsectors accounted for 85.1 per cent of total employment in tourism-related industries.