KUALA LUMPUR, March 20 — Malaysia’s tourism sector is recovering strongly and leading Asean in retail-driven visitor spending, with domestic travellers and premium international tourists helping to boost footfall and spending across the country, according to a new report by BMI, a unit of Fitch Solutions.

Domestic tourism has emerged as a stabilising pillar, with Malaysians taking more trips than before the pandemic.

According to the report, a total of 260.1 million domestic trips were recorded in 2024, surpassing pre-pandemic levels, while authorities aim for 280 million trips in 2025.

Shopping is the largest draw, followed by food and leisure experiences. Weekend getaways to Kuala Lumpur, heritage trips to Penang and Melaka, and nature retreats to Genting Highlands and the east coast islands are becoming increasingly popular.

“Domestic travel is reshaping retail patterns in Malaysia,” BMI noted, adding that visitors are increasingly seeking experiences rather than just souvenirs.

Boutique cafés in George Town, curated shopping in Bukit Bintang, and lifestyle-focused precincts are drawing greater discretionary spending.

Kuala Lumpur’s Bukit Bintang remains the country’s retail tourism hub, anchored by malls such as Pavilion Kuala Lumpur and neighbouring streets, which benefit from proximity to hotels, nightlife, and attractions.

Beyond the capital, destinations such as Mitsui Outlet Park near KLIA, Genting Highlands, Johor Bahru for Singaporean day-trippers, and Langkawi’s duty-free zones contribute to the growing retail economy.

The rise of premium tourism

Growth in four- and five-star hotel supply, combined with Malaysia’s affordability in the luxury segment, is encouraging higher-spending visitors to invest in wellness, fashion, and retail during their stays.

The report said luxury hotels near flagship malls in Kuala Lumpur, Penang, and Johor Bahru are increasingly enabling curated shopping experiences through concierge services and partnerships with high-end retailers.

One standout trend is “durian tourism,” particularly among visitors from Mainland China. Travellers are increasingly planning trips around durian season, visiting orchards, tasting varieties at source, and enjoying experiential packages.

Malaysian durians command a higher price compared with Thai and Vietnamese exports, underlining the fruit’s premium appeal.

BMI noted that this segment could expand into reservation-only tastings, curated orchard tours, and luxury hotel packages, offering a uniquely Malaysian experience.

International arrivals are also recovering, with Malaysia remaining Asean’s largest tourism market. In 2025, the country welcomed 42.2 million international visitors, with Singapore, Thailand, Mainland China, and India among the top source markets.

Visa-free access for Chinese and Indian nationals, improved air connectivity, and campaigns such as Visit Malaysia Year 2026 (VM2026) have supported this rebound. Kuala Lumpur continues to attract shoppers, while Penang and Langkawi benefit from heritage, food tourism, and duty-free retail spending.

BMI’s outlook suggests Malaysia’s blend of accessibility, competitive pricing, and unique offerings like durian tourism positions the country as a standout destination for both shoppers and leisure travellers in the region.