Malaysia Sets Ambitious Tourism Goals with Visit Malaysia 2026
Malaysia is setting its sights high with Visit Malaysia 2026 (VM 2026), a strategic initiative aiming to welcome 35.6 million visitors and generate RM147.1 billion in tourism revenue. Highlighted at the ASEAN Tourism Forum 2025, held in Johor Bahru, the country’s plan focuses on key strategies including sustainability, AI-driven innovations, and enhanced regional partnerships.
To achieve these goals, Malaysia has allocated RM550 million for tourism promotion. It has also extended visa-free access for Chinese and Indian tourists until 2026, and is improving air connectivity to drive more arrivals.
Sustainability at the Core
Sustainability remains a cornerstone of VM 2026, with efforts to promote lesser-known destinations and limit visitor numbers in ecologically sensitive areas. Hannah Pearson, Director at Pear Anderson, emphasized the critical role of sustainability not only in ecological responsibility but also as a competitive edge.
“The biggest opportunity is thinking of sustainability not only as the right way to do travel for the planet, but also as a competitive advantage,” Pearson said in an interview with WiT. “EU regulations around sustainability and greenwashing are going to impact the corporate travel sector sooner rather than later in the ASEAN tourism industry, which is going to have a ripple-down effect on the larger tourism industry in ASEAN.”
“Those companies already transparent around their carbon emissions and have strong frameworks are the ones that will thrive,” Pearson added.
However, Pearson pointed out that the region’s sustainable tourism goals, except for Singapore, are not clearly defined, nor do they have a roadmap for supporting smaller players to achieve sustainability.
Role of Online Travel Agencies
The evolving role of online travel agencies (OTAs) was another major discussion point at ATF 2025. While OTAs increase visibility and bookings, concerns remain over high commission rates and their impact on smaller hoteliers.
“The biggest challenge for travel players is figuring out the right distribution channels, particularly for smaller hotels,” Pearson explained. “Do you use an OTA? Which OTA do you use? How about channel managers? How can you become more efficient at targeting consumers using AI advertising tools? There is a minefield out there, and I don’t envy revenue managers’ roles right now.”
Panel Discussions and Industry Insights
Industry experts Such as Yang Li of Booking.com and Nadia Omer of AirAsia MOVE debated the balance between profitability and accessibility during a panel session moderated by Pearson.
AirAsia MOVE is positioning itself as a budget-friendly alternative that emphasizes direct collaboration with smaller accommodation providers. Regulatory challenges and fair competition were also hot topics, with calls for greater oversight to prevent market monopolization.
The Influence of AI and Gen AI
No discussion in modern tourism is complete without addressing AI and Gen AI. The technology evolves rapidly, with China’s advancements in the field via DeepSeek alarming the US stock market.
“Everyone is still trying to figure out how AI can play a role in the tourism booking and discovery process,” Pearson said. “Implementations are being pushed primarily by larger travel tech companies such as OTAs. However, SMEs are almost better placed to experiment with AI due to their size and ability to adapt more nimbly to new tools.”
“The sophistication level of AI usage and its impact on tourism varies by country in ASEAN, but I believe it should play a more significant role, particularly in promoting the region as a single destination,” Pearson added.
Talent Development in Tourism
ATF highlighted the importance of talent development in the tourism sector, especially with the increasing reliance on digital tools and personalized travel experiences. ASEAN nations are investing in training programs to equip hospitality professionals with advanced skills in customer service, sustainability practices, and digital marketing.
Collaborative initiatives between universities, vocational training centers, and the tourism industry aim to create a future-ready workforce.
“My key takeaway from the forum was how powerful SMEs are in the overall tourism value chain,” Pearson concluded. “Yes, there are the massive OTAs, but they rely on these small businesses for their model to work. And there is absolute power in how an SME can make a difference – even if they think of themselves as insignificant.”
“Those companies who are already transparent around their carbon emissions and have frameworks in place, are the ones which are going to thrive,” said Hannah Pearson, Director, Pear Anderson
Driving Forward
With Visit Malaysia 2026 and the strategies unveiled at ATF 2025, Malaysia is set to revolutionize its tourism sector. The commitment to sustainability, AI-driven innovation, and talent development sets a strong foundation for a competitive and resilient tourism industry.
As these initiatives come to fruition, it will be fascinating to observe their impact on the sector and the region at large.
We would love to hear your thoughts on Malaysia’s ambitious tourism goals. Share your insights in the comments below or subscribe to our newsletter to stay updated with the latest travel news and insights.
