Market Trends of Hospitality Industry in Malaysia
This section covers the major market trends shaping the Malaysia Hospitality Market according to our research experts:
Smart Tourism in Malaysia to Offer Lucrative Growth Prospects
While the tourism industry has suffered as a result of the pandemic, initiatives to build a more resilient and sustainable future in Malaysia include a focus on digitalization and the development of smart products and infrastructure. Tourism is Malaysia's third largest contributor to GDP. The number of tourists visiting Malaysia is expected to reach 9.2 billion by 2022, translating into USD 5.98 billion in revenue. The Malaysian Smart Tourism 4.0 Initiative aims to unlock the full potential of the tourism industry by leveraging IR 4.0 enabling technologies. While the tourism industry has suffered as a result of the pandemic, initiatives to build a more resilient and sustainable future in Malaysia include a focus on digitalization and the development of smart products and infrastructure. Malaysia's Ministry of Tourism, Arts, and Culture has increased the target for tourist arrivals in 2022 to 9.2 million, with tourism receipts of 26.8 billion RM (USD 5.98 billion), after the country has nearly met the initial target of 4.5 million. Also as per the Malaysian Investment Development Authority (MIDA) with the incorporation of Smart Tourism 4.0 Malaysia's tourism-based revenue is expected to reach about USD 110 billion by 2030 from USD 25 billion in 2018.
Growing Investment in Hotel & Tourism Sector to Surge Hospitality Market in Malaysia
Malaysia's government is working to improve the country's tourism industry. The Malaysian government launched the National Tourism Policy (NTP) on December 2020, as a roadmap for support to the country's tourism industry until 2030. Part of the strategy is to shape Malaysia into a popular tourist destination for visitors from all over the world. An increase in the number of investors in the broader market is expected to benefit Malaysia's hospitality industry.
