KUALA LUMPUR: The domestic tourism and hospitality sector continues to face its biggest hurdle – acute shortage of skilled workers – as many employees left the industry during the Covid-19 pandemic, either due to job losses or a shift to more stable sectors.
As borders reopened and travel demand surged, the industry has struggled to keep pace with the need for trained, service-oriented personnel.
The talent drain has impacted day-to-day operations and affected the overall quality of guest experiences, which is critical in maintaining Malaysia’s competitiveness as a preferred tourism destination.
Hilton Hotels marketing and communications director, national marketing office, Eugene Oelofse said rebuilding this skilled workforce has proven difficult, particularly as the sector competes with other industries offering better job security, higher wages, or more flexible working conditions.
He said efforts to attract new talent through upskilling programmes, incentives and education-industry partnerships are ongoing but take time to yield results.
“Without a strong pipeline of skilled professionals, the industry’s recovery risks being undermined, especially as Malaysia gears up to welcome increased tourist arrivals in the coming years,” Oelofse told SunBiz.
Asked about the outlook for domestic tourism during Visit Malaysia Year 2026, he expressed confidence that the current tourism boom will persist, particularly in the near to medium term.
“Firstly, Malaysia has so much diversity in its travel destinations, cultural heritage and experiences; we are really spoiled for choice. The number of local options available, set against global price increases and external pressures, will surely keep the domestic appeal very high.
“As local cities receive more visitors, we will need to address some key issues, from infrastructure to reducing traffic.
“Investing in and developing our workforce is important to keep up with industry growth. We are facilitating the adoption of digital platforms by local operators to provide them with the necessary exposure, and we are placing a crucial emphasis on sustainability practices to ensure the preservation of this remarkable natural destination for future generations,” Oelofse said.
Commenting on the domestic tourism segments experiencing the strongest growth, Traveloka president Caesar Indra cited findings from the company’s white paper, Travel Redefined: Understanding and Catering to the Diverse Needs of Apac Travellers.
He noted that for Malaysian travellers, the primary motivation remains rest and relaxation, with 31% prioritising leisure-focused experiences.
This response is followed by 20% seeking visits to tourist attractions and 13% expressing a preference for nature-based destinations.
“Our data shows strong demand for natural destinations such as mountain ranges, beaches and coastal areas, followed by destinations rich in historical and cultural experiences. These trends reflect a deepening desire among Malaysians to reconnect with nature and rediscover the country’s heritage, a shift that has strengthened post-pandemic,” he said.
In the first quarter of 2025, Traveloka data shows that Kedah (Langkawi), Penang and Sabah remain the top domestic destinations.
Interest in emerging cities such as Kota Bahru and Alor Setar is also growing, with Alor Setar recording the highest number of flight bookings, followed by Kota Bahru, Langkawi and Penang.
“At Traveloka, we see this shift as an exciting opportunity to support the diversification of Malaysia’s domestic tourism landscape.
“As travellers increasingly seek both well-known and emerging destinations, our technology-driven platform is uniquely positioned to meet these evolving preferences, providing seamless access, tailored recommendations, and attractive deals to empower Malaysians to explore more of their country,” Indra said.
Asked how he expected the domestic tourism boom to continue, he said Traveloka believes it will continue to thrive in Malaysia.
However, sustaining this momentum requires a deliberate and data-driven approach, Indra said, adding that travellers’ preferences are evolving rapidly and tourism stakeholders must adapt accordingly.
In fourth-quarter 2024, Malaysia recorded 66.8 million domestic visitors – a 21.4% increase year-on-year – while domestic tourism expenditure surged by 21.9% to RM29 billion, reflecting a strong rebound in travel and consumer spending, according to the Department of Statistics Malaysia.
To sustain this momentum, the tourism sector must remain adaptable to evolving traveller expectations.
According to Traveloka, six strategic priorities will be key to sustaining tourism growth: personalising travel experiences through artificial intelligence and data analytics, encouraging travel to lesser-known destinations via dynamic pricing, and strengthening data security and transparency.
Additional focus areas include making sustainable travel options more accessible and competitively priced, offering inclusive payment solutions such as mobile wallets and cash-friendly options, and curating locally relevant packages that highlight Malaysia’s culture, natural beauty and safety.
