Hospitality Industry in Malaysia Market Size (2024 - 2029)

The market size of Malaysia's hospitality industry is experiencing significant growth, driven by the recovery of the tourism sector post-pandemic. Despite the challenges posed by COVID-19, which led to substantial revenue losses and workforce reductions, the industry is set to expand. The Malaysian government has implemented strategic initiatives, such as the National Tourism Policy and the 12th Malaysia Plan, to rejuvenate the tourism market. These strategies focus on enhancing tourist confidence, promoting safety and hygiene, and offering high-quality tourism experiences, including ecotourism and cultural activities, to maintain competitiveness and increase market share.

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Market Size of Hospitality Industry in Malaysia

Malaysia Hospitality Industry Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 6.50 %
Market Concentration Medium

Major Players

Malaysia Hospitality Industry Major Players

*Disclaimer: Major Players sorted in no particular order

Hospitality in Malaysia Market Analysis

 The hospitality industry in Malaysia is estimated at USD 4 billion in the current year and is poised to register a CAGR of greater than 6.5% during the forecast period. 

Malaysia's hospitality industry is rapidly expanding, following the country's tourism industry. The tourism industry has undoubtedly been hit hard by the COVID-19 pandemic, with effects crippling travel and tour operators as well as hotels. According to the Malaysian Association of Hotels (MAH), approximately 120 hotels have closed either temporarily or permanently, and the industry has lost over RM6.5 billion in revenues for 2020, with another RM9 billion likely lost to date in 2021. According to data from the World Tourism Organization (UNWTO), the hotel workforce in Malaysia fell 10% to 208,500 people in 2020 from a pre-pandemic total of 233,800 people in 2019, while MAHO estimates that the hospitality sector lost about half of its overall workforce to other industries and self-employment during the pandemic.

The Government has outlined several strategies in the 12th Malaysia Plan to re-energize the tourism industry (12MP). Among them are restoring tourist confidence in traveling safely in a post-pandemic world, as well as providing higher-quality products and services such as ecotourism and community-based cultural immersion activities that vividly depict the Malaysian experience. All branding and promotion efforts will focus on safety and hygiene. The government has also launched the National Tourism Policy (NTP) 2020 - 2030, a ten-year transformation plan for the tourism industry. The NTP was designed to place Malaysia among the top ten tourist destinations in terms of both arrivals and receipts. Smart tourism is one of the key strategies for remaining competitive far into the future.

Hospitality in Malaysia Industry Segmentation

The hospitality industry of Malaysia is well-known for playing a crucial role in driving socio-economic development and job creation as a significant catalyst of economic growth. The report aims to provide a detailed analysis of the Malaysian Hospitality industry. It also focuses on market dynamics, emerging trends, and insights into the Malaysian Hospitality industry. Also, it analyses the major players such as Genting Group, Accor SA, Shangri-la Hotels and Resorts, Hilton Worldwide Holdings Inc, and Marriott International Inc, among others, and the competitive landscape in the market. The market is segmented by Type (Chain Hotels and Independent Hotels), and by Segment (Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, Luxury Hotels, and Service Apartments). The report offers market size and forecasts for the hospitality industry in Malaysia market in value (USD billion) for all the above segments.

By Type
Chain Hotels
Independent Hotels
By Segment
Budget and Economy Hotels
Mid and Upper Mid-Scale Hotels
Luxury Hotels
Service Apartments
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Hospitality Industry in Malaysia Size Summary

The hospitality industry in Malaysia is experiencing a significant expansion, closely following the recovery of the tourism sector. Despite the severe impact of the COVID-19 pandemic, which led to temporary and permanent hotel closures and a substantial loss of revenue, the industry is poised for growth. The Malaysian government has implemented strategic initiatives under the 12th Malaysia Plan and the National Tourism Policy to rejuvenate the tourism sector. These efforts focus on restoring tourist confidence, enhancing the quality of tourism offerings, and promoting safety and hygiene. The government aims to position Malaysia among the top ten global tourist destinations, leveraging smart tourism and digitalization to remain competitive and resilient in the future.

The Malaysian hospitality market is characterized by a mix of international and Asian hotel brands, with international chains dominating the room supply. The industry presents substantial growth opportunities, attracting new investors and strategic partnerships. Prominent players such as Genting Group, Accor SA, Shangri-la Hotels and Resorts, Hilton Worldwide Holdings Inc, and Marriott International Inc are actively contributing to the market's expansion. Recent developments, including the opening of new hotels like Le Meridien Petaling Jaya, highlight the ongoing investment and growth in the sector. As the industry recovers, it continues to be a significant contributor to Malaysia's GDP, with initiatives like Smart Tourism 4.0 expected to further enhance the sector's potential.

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Hospitality Industry in Malaysia Market Size - Table of Contents

  1. 1. MARKET INSIGHTS AND DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Porter's Five Forces Analysis

    5. 1.5 Leading Cities in Malaysia with Respect to Number of Visitors

    6. 1.6 Investments (Real Estate, FDI and others) in the Hospitality Industry

    7. 1.7 Insights on Current Trends and Innovations in the Hospitality Industry

    8. 1.8 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors

    9. 1.9 Insights on Shared Living Spaces Impact on the Hospitality Industry

    10. 1.10 Insights on Other Economic Contributors to the Hospitality Industry

    11. 1.11 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Chain Hotels

      2. 2.1.2 Independent Hotels

    2. 2.2 By Segment

      1. 2.2.1 Budget and Economy Hotels

      2. 2.2.2 Mid and Upper Mid-Scale Hotels

      3. 2.2.3 Luxury Hotels

      4. 2.2.4 Service Apartments

Hospitality Industry in Malaysia Market Size FAQs

The Malaysia Hospitality Market is projected to register a CAGR of greater than 6.5% during the forecast period (2024-2029)

Genting Group, Accor SA, Shangri-la Hotels and Resorts, Hilton Worldwide Holdings Inc and Marriott International Inc are the major companies operating in the Malaysia Hospitality Market.

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