Malaysia’s Travel Boom Accelerates as Selangor and Kuala Lumpur Emerge as Top Domestic Tourism Powerhouses While Visitor Spending Surges to One Hundred Twenty One Billion Three Hundred Million Malaysian Ringgit in Strong 2025 Growth

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Malaysia’s domestic travel sector expanded sharply in 2025, driven by sustained mobility, strong festive-season movement, and rising consumer confidence in local tourism. The surge in visitor spending to RM121.3 billion reflects increased travel activity across the country, while Selangor and Kuala Lumpur continued to dominate as the most visited destinations due to their strong infrastructure, dense urban attractions, and business-linked travel demand. Growth was further supported by state tourism campaigns, cultural festivals, and major events that encouraged inter-state movement, longer stays, and higher spending on accommodation, food, retail, and transport, positioning Malaysia’s domestic tourism as a key pillar of its broader economic recovery and travel expansion in 2025.

Domestic tourism in Malaysia continued its upward trajectory in 2025, supported by stronger travel demand, festive mobility, government-led tourism campaigns, and a steady calendar of cultural and international events. The sector showed broad-based growth across visitor numbers, spending patterns, and trip duration, reinforcing domestic travel as a key driver of the country’s tourism economy.

According to the latest Domestic Tourism Survey (DTS) 2025 released by the Department of Statistics Malaysia, total domestic visitor expenditure rose by 13.6% year-on-year to RM121.3 billion, compared with RM106.7 billion in 2024. The increase was driven by higher spending from both overnight tourists and day-trippers, reflecting sustained confidence in local travel activity.

Tourist expenditure recorded a stronger rise of 14.6%, while excursionist spending increased by 12.2%. Tourists remained the dominant contributor to the domestic tourism economy, accounting for 59.5% of total expenditure, underscoring their central role in sustaining sectoral growth.

Travel activity also expanded significantly throughout the year. The number of domestic visitors increased by 11.5%, reaching 290.1 million trips, compared with 260.1 million in 2024. This surge highlights continued mobility within the country and strong demand for short-haul and inter-state travel options.

At the same time, Malaysians were spending slightly more time at destinations. The average length of stay increased to 2.56 nights, up from 2.49 nights in the previous year. While the increase appears modest, it indicates a gradual shift toward longer domestic travel experiences and more immersive trips.

A major driver of this growth was seasonal and festive travel. According to the Department of Statistics Malaysia, peak demand periods included Chinese New Year, Hari Raya Aidilfitri, Deepavali, Christmas, and school holiday seasons. These periods consistently generated high domestic movement, particularly among families and group travellers.

State-led tourism campaigns under the “Visit State Year” initiatives further supported domestic travel flows by encouraging Malaysians to explore destinations beyond their home states. These campaigns helped distribute tourism spending more evenly across regions while promoting lesser-known attractions.

Cultural and event-driven tourism also played a significant role. Festivals such as the Kaamatan Festival in Sabah and the Gawai Dayak celebrations in Sarawak attracted strong domestic participation. In addition, large-scale concerts, exhibitions, sporting tournaments, and business events contributed to increased travel activity across major cities.

Malaysia’s role as host of several ASEAN meetings and related programmes further boosted business and event tourism, generating additional demand for accommodation, transport services, and hospitality infrastructure nationwide.

Travel patterns and accommodation trends

Domestic travel in 2025 remained heavily reliant on land transport, which accounted for 97.5% of all trips. This underscores the continued importance of road connectivity in enabling short and medium-distance travel across the country.

Accommodation preferences showed a balance between informal and paid stays. Staying with relatives and friends remained the most common option, representing 56.2% of total tourists. However, the use of paid accommodation increased to 43.8%, up from 39.6% in 2024, reflecting growing comfort with commercial lodging options.

Within paid accommodation, hotels remained the most popular choice, accounting for 23.1% of domestic tourists. This trend suggests steady recovery and sustained demand within the formal hospitality sector.

Purpose of travel and spending behaviour

Domestic travel was largely driven by social and consumption-related motivations. Visiting relatives and friends remained the top reason for travel, accounting for 35.6% of total trips. Shopping followed closely at 24.6%, reinforcing the importance of retail and leisure spending in domestic tourism flows.

Spending patterns mirrored these travel motivations. The largest share of expenditure went toward shopping (36.9%), followed by food and beverages (16.1%), and vehicle fuel (13.5%). These categories highlight the everyday consumption nature of domestic tourism in Malaysia, where travel often blends leisure, social visits, and retail activity.

Most visited destinations in Malaysia

Domestic tourism activity remained concentrated in a few key states and urban centres, supported by infrastructure, accessibility, and diverse attractions.

• Selangor: 36.4 million visitors, remaining the most visited state due to its strong urban connectivity, commercial hubs, and proximity to the capital region.
• Federal Territory of Kuala Lumpur: 35.1 million visitors, driven by business activity, entertainment, retail centres, and international-standard attractions.
• Perak: 23.6 million visitors, supported by heritage tourism, nature-based destinations, and growing domestic leisure demand.
• Sabah: Strong participation boosted by cultural events such as the Kaamatan Festival and nature tourism appeal.
• Sarawak: Increased visitor inflows linked to the Gawai Dayak celebrations and expanding cultural tourism offerings.

These destinations continue to benefit from strong transport networks, diversified tourism products, and consistent domestic demand from both leisure and business travellers.

Malaysia’s domestic travel boom in 2025 was powered by rising mobility, strong festive demand, and steady spending growth, pushing total visitor expenditure to RM121.3 billion. Selangor and Kuala Lumpur led the surge as the country’s top tourism hubs, driven by infrastructure strength and consistent urban travel demand.

Overall, domestic tourism in Malaysia remained resilient and expansionary in 2025. Growth across visitor numbers, expenditure, and length of stay reflected sustained household mobility and strong seasonal demand. Supported by festivals, government campaigns, cultural events, and business travel, the sector continues to play a central role in Malaysia’s broader tourism economy, with key destinations maintaining their dominance while regional attractions gain gradual traction.