Market Size of Hospitality Industry in Malaysia
| 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
*Disclaimer: Major Players sorted in no particular order |
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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.
