Southeast Asia’s 3rd-third richest nation expects strong rebound in international arrivals

According to a report recently released by BMI, a market research firm under Fitch Solutions, Malaysia, Southeast Asia’s third-richest country by GDP per capita behind Singapore and Brunei, is forecast to welcome 27.97 million international visitors in 2026, up 5.1% from 2025 and 7.2% higher than in 2019, before the pandemic outbreak.

The projection comes despite a temporary slowdown in inbound tourism. International arrivals in Malaysia fell 3.3% year-on-year to 2.6 million in May, marking the third monthly decline this year.

In the first five months of 2026, Malaysia received 10.6 million foreign visitors, up 1.1% compared to the same period last year.

BMI said the weaker performance reflected seasonal factors rather than a structural slowdown. The decline was mainly driven by fewer visitors from the Middle East and Europe as conflict in the Middle East disrupted air travel, leading to higher airfares and reduced flight capacity.

Tourists gather in front of a giant eagle sculpture at Eagle Square on Langkawi Island, Malaysia, 2018. Photo by Reuters

In this context, arrivals from the Chinese mainland remained a bright spot. Over the last five months, the number of Chinese visitors rose 21% year-on-year to 1.87 million, supported by Malaysia’s visa-free policy for Chinese nationals, extended through Dec. 31, and improved air connectivity under the Visit Malaysia 2026 campaign.

BMI forecast that international tourist arrivals in Malaysia will recover between June and August, before peaking in December. However, the research center also noted that the recovery outlook will depend on airfares and the normalization of flight schedules as disruptions related to the Middle East ease, as well as continued growth in demand from China.

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