DOMESTIC tourism continued its strong growth trajectory in 2025, reinforcing its role as a key pillar of Malaysia’s tourism industry alongside inbound travel.
According to official statistics, domestic tourism expenditure reached RM121.3 bil last year, a significant increase of 13.6% from RM106.7 bil in 2024. The total number of domestic visitors, comprising tourists and excursionists, rose to 290.1 million from 260.1 million a year earlier.
The figures demonstrate that Malaysians are travelling more frequently and spending more on leisure, recreation and other activities within the country.
This trend has provided an important boost to tourism-related businesses, including accommodation providers, retailers, restaurants and transport operators.
As in previous years, visiting relatives and friends remained the main reason for domestic travel, accounting for 35.6% of trips.
This was followed by shopping (24.6%), holiday and recreation (20.6%), events and sports activities (6.9%), and medical and wellness purposes (5.8%).
Shopping remained the largest contributor to domestic tourism spending, accounting for 36.9% of total expenditure.
Food and beverages represented 16.1%, while automotive fuel accounted for 13.5%. The availability of subsidised fuel has helped support road travel, making domestic trips more affordable for many Malaysians.
Domestic tourists, defined as visitors who stay at least one night away from home, also extended their average length of stay. The average increased to 2.56 nights in 2025 compared with 2.49 nights in 2024.
Although about 70% of domestic tourists continued to stay with relatives and friends, the number opting for paid accommodation has been increasing, providing additional support for hotels and other lodging operators.
Selangor recorded the highest number of domestic visitors at 36.4 million, followed by Kuala Lumpur with 35.1 million and Perak with 23.6 million. These figures include both interstate and intrastate travel, reflecting the popularity of local attractions and activities within each state.
However, when measured by the number of domestic tourists staying overnight, Pahang emerged as the most popular destination with 11 million visitors. It was followed by Selangor (10.6 million), Perak (10.4 million), Kuala Lumpur (10.1 million) and Johor (9.8 million).
Pahang’s strong performance was driven largely by the popularity of Genting Highlands, which also recorded the country’s highest hotel occupancy rate at 97%.
The positive momentum has continued into the first quarter of Visit Malaysia 2026. While Visit Malaysia campaigns are often associated with attracting international visitors, they also play an important role in stimulating domestic travel and encouraging Malaysians to explore destinations within their own country.
Domestic and inbound tourism are not competing sectors. Instead, they complement and reinforce one another.
Destinations that depend heavily on international visitors can become vulnerable during global disruptions, as demonstrated during the COVID-19 pandemic.
At the same time, destinations that attract only local visitors may have less incentive to raise service standards and facilities to meet international expectations.
Malaysia’s tourism industry benefits from a healthy balance of both markets. The country offers a wide range of accommodation, from budget hotels and short-term rental accommodation (STRA) to luxury and ultra-luxury properties, catering to travellers across different income groups and travel preferences.
The growing patronage of both domestic and international visitors has helped sustain many tourism businesses and supported the recovery of the hospitality sector in the post-pandemic period.
Looking ahead, the outlook for both domestic and inbound tourism remains positive. Continued growth, however, will depend on global economic stability, regional security and the absence of major disruptions similar to the COVID-19 pandemic.
If these conditions remain favourable, domestic and international tourism can continue to grow together, strengthening Malaysia’s position as a leading travel destination in the region. ‒ June 26, 2026
YS Chan is a tourism, transport and training consultant.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image: The Star
