By Mich Goh

Airbnb welcomes the new tourism-related commitments and incentives in the National Budget 2025. The provision of RM500 million dedicated to promoting tourism activities and preparing for Visit Malaysia Year 2026 is a welcome measure that will enhance Malaysia's appeal as a preferred tourism destination, not just for 2026 but beyond. This allocation includes cultural events, tourism activities, and improving flight connectivity to Malaysia, which are crucial for boosting both domestic and international tourism.

Furthermore, the RM110 million investment aimed at upgrading tourist areas, fostering ecotourism partnerships, and supporting Malaysia's UNESCO nominations, such as the improvement of facilities at Taman Negara Endau Rompin, Pulau Redang, and Pantai Tusan Bekenu, is a significant step forward. Collaborations with organizations like UNDP and Habitat Foundation underscore Malaysia's commitment to sustainable and eco-friendly tourism development, further positioning Malaysia as a leading ecotourism destination, attracting travelers from around the world who seek immersive and environmentally responsible experiences.

Additionally, the RM600 million allocated for the upkeep and enhancement of Kuala Lumpur as a cultural and creative hub demonstrates the government's commitment to preserving and promoting the capital city's unique heritage and appeal. Airbnb applauds the restoration and revitalization of iconic landmarks such as Carcosa Seri Negara and Bangunan Sultan Abdul Samad, which will further enhance Kuala Lumpur's status as a vibrant destination, contributing significantly to the country's economic growth and tourism development.

In line with these initiatives, Airbnb believes that short-term rental accommodations (STRA) will play a pivotal role in diversifying Malaysia's tourism offerings, catering to a broad spectrum of travelers and providing an additional source of income for many Malaysians. In the 12 months leading up to 31 March 2023, Airbnb guests spent approximately RM7 billion* in Malaysia on restaurants, retail, and transportation. Notably, a significant majority of Airbnb guest spending went beyond accommodation, with non-accommodation expenditures being more than six times the amount spent on lodging alone, driving impactful economic benefits to local communities.

With this, we strongly urge the Government to recognise the potential of the sharing economy in the tourism sector, which was a key recommendation submitted by Airbnb for the Government's pre-Budget consideration. This will be key ahead of Visit Malaysia Year 2026 and the country's current target of welcoming over 35.6 million international tourists.

Additionally, Airbnb has been providing industry feedback and global best practices to the relevant authorities to support the development of the national STRA guidelines. We encourage the Federal Government to support and endorse the upcoming national STRA guidelines, which will be the first of its kind in Southeast Asia and showcase dynamism and adaptability to drive the tourism industry.

We remain committed to working with the Government to support tourism growth and recovery, to ensure that more local communities are able to leverage the benefits of the travel economy.

The author is the Director of Public Policy for Airbnb APAC