Amanda Siddharta
Research expert covering Malaysia
Accommodation in Malaysia - statistics & facts
From beautiful nature amidst a warm tropical climate to bustling metropolises with well-developed infrastructure, Malaysia has a lot to offer as a holiday destination. The country had more than 20 million tourist arrivals in 2023, a number that nearly reached the pre-pandemic time. At the heart of Malaysia’s tourism sector is the accommodation industry, which employed more than 101,000 people in 2023.
Nonetheless, the travel restrictions in place for nearly two years during the COVID-19 pandemic resulted in a sharp decrease in foreign tourist arrivals in the country. Ultimately, this impacted the amount of revenue generated by the industry. At the end of 2021, the accommodation industry in Malaysia recorded a revenue of approximately 4.56 billion Malaysian ringgit, around 82 percent lower compared to the revenue before the pandemic.
Facilities offered by hotels at considerably lower prices in Malaysia are also the obvious choice for travelers, including those within a budget. The average daily rate of a four-star hotel in Malaysia was approximately 221 Malaysian ringgit in 2022. There are also large international hotel chains operating in the country. Malaysian-owned hotel and resort company, Genting Malaysia Berhad, is currently the third most valuable brand in Malaysia.
Another accommodation type that is gaining popularity in Malaysia is vacation rentals. Consumers who dislike staying in hotels can now book private holiday homes or apartments for short-term periods. Online portals, such as Airbnb, have made vacation rentals easier to access. Although it is still incomparable with the number of hotel guests, the vacation rental industry in Malaysia had more than eight million users in 2022.
Nevertheless, there is a lack of regulations for vacation rentals in most states in Malaysia. In October 2023, Airbnb, the largest online marketplace platform for short term rental, announced its plan to collaborate with the Town and Country Planning Department (PLANMalaysia) and devise a comprehensive guideline for short-term rentals.
To support the recovery of the accommodation industry, the Malaysian government has allocated 350 million Malaysian ringgit to boost tourism promotions and reach more than 26 million tourist arrivals in 2026. This would expedite the recovery in the accommodation and tourism industries after the two years of border closures.
Nonetheless, the travel restrictions in place for nearly two years during the COVID-19 pandemic resulted in a sharp decrease in foreign tourist arrivals in the country. Ultimately, this impacted the amount of revenue generated by the industry. At the end of 2021, the accommodation industry in Malaysia recorded a revenue of approximately 4.56 billion Malaysian ringgit, around 82 percent lower compared to the revenue before the pandemic.
The focus on the hotel industry
Due to the rapid development of travel accommodation in popular destinations, including Penang, Sabah, and Sarawak, travelers in Malaysia are spoiled with a wide array of accommodations to choose from. The hotel industry currently has the largest market share compared to other types of accommodation. In Sabah and Sarawak in East Malaysia, there are 479 and 495 hotels available in each state.Facilities offered by hotels at considerably lower prices in Malaysia are also the obvious choice for travelers, including those within a budget. The average daily rate of a four-star hotel in Malaysia was approximately 221 Malaysian ringgit in 2022. There are also large international hotel chains operating in the country. Malaysian-owned hotel and resort company, Genting Malaysia Berhad, is currently the third most valuable brand in Malaysia.
Another accommodation type that is gaining popularity in Malaysia is vacation rentals. Consumers who dislike staying in hotels can now book private holiday homes or apartments for short-term periods. Online portals, such as Airbnb, have made vacation rentals easier to access. Although it is still incomparable with the number of hotel guests, the vacation rental industry in Malaysia had more than eight million users in 2022.
Nevertheless, there is a lack of regulations for vacation rentals in most states in Malaysia. In October 2023, Airbnb, the largest online marketplace platform for short term rental, announced its plan to collaborate with the Town and Country Planning Department (PLANMalaysia) and devise a comprehensive guideline for short-term rentals.
Recovery in the post-pandemic era
The easing of travel restrictions has brought back international tourists to Malaysia, allowing the accommodation industry to slowly recover from the COVID-19 pandemic. The hotel market was forecasted to grow by approximately 18 percent in 2024, with the industry also expecting nearly ten percent growth in the vacation rental segment in the same year.To support the recovery of the accommodation industry, the Malaysian government has allocated 350 million Malaysian ringgit to boost tourism promotions and reach more than 26 million tourist arrivals in 2026. This would expedite the recovery in the accommodation and tourism industries after the two years of border closures.
