Malaysia Expects Tourism Fallout From Indonesia Haze

Australian tourist Cathy Hamilton was experiencing pangs of regret about her visit to Malaysia as she struggled to take pictures of the haze-shrouded Petronas Twin Towers.

(Bloomberg) -- Australian tourist Cathy Hamilton was experiencing pangs of regret about her visit to Malaysia as she struggled to take pictures of the haze-shrouded Petronas Twin Towers. 

“I tried to get some nice photos of the Twin Towers, Merdeka 118 and other scenery, but I couldn’t get good shots as they were all clouded by the haze,” said the Sydney native, who also struggled to breathe as smoke from Indonesia’s wild fires choked the region.

Had it not been for the ICU Asian Cheerleading Championships her daughters attended during the weekend, she probably would have canceled her trip, Hamilton said earlier this week.

She’s not the only tourist reconsidering Malaysia as haze blankets the country. Tourism operators are experiencing fewer bookings for this time of year — and even cancellations — as smog disrupts flights, obscures some of the country’s best-known attractions and threatens a key driver of the Southeast Asian economy. 

Kuala Lumpur, Singapore and Jakarta were listed among the world’s 10 most-polluted major cities on Tuesday, according to live rankings from air-quality monitoring company IQAir. The bad air prompted schools to close in some parts of Malaysia. 

Inbound tour operators are reporting cancellations for November and fewer group bookings, while overseas travel agents are seeking updates on air quality, according to Malaysian Inbound Tourism Association President Mint Leong.

The slowdown comes as Malaysia targets 47 million visitors this year under its extended Visit Malaysia 2026 campaign. The country recorded 28.8 million international visitors in the first eight months of 2026, according to Tourism Malaysia. The Ministry of Tourism didn’t respond to queries on the effect of the haze on the sector.

“The loss of revenue could run into the millions” of ringgit, Leong said.

International visitors spent 124.8 billion ringgit ($30.6 billion) in the country last year versus 112.1 billion ringgit by domestic tourists, Department of Statistics data show.

Tourism-related industries generated 323 billion ringgit in economic value in 2025, equivalent to 15.9% of gross domestic product. Economic activity directly attributable to tourism spending accounted for 6.8% of GDP.

Despite the hazy conditions, some tourists on Monday were thronging Kuala Lumpur’s Chinatown in search of bargains, although vendor Wong Mei said there’d been a drop in customers this month.

“Fewer people have come out in the last two weeks,” the 62-year-old handbag seller, said, blaming the decline on the haze.

James Wheatley, a tourist from the UK, said the pollution wasn’t deterring his group’s visit to Malaysia.

“We just arrived yesterday and will stay until October 27. The haze isn’t too bad and we’re adapting to it,” the 60-year-old said as he sampled local fruit at a roadside stall. “Had we known, we would have delayed our trip, but we’re already here.”