Airbnb contributed more than RM 5 billion to Malaysia’s Gross Domestic Product (GDP) and supported nearly 57,000 jobs in the year following the reopening of international travel, according to new research by Oxford Economics. The report, commissioned by Airbnb, highlights the platform’s role in Malaysia’s tourism sector during the twelve months up to March 2023.
The data shows that Airbnb accounted for about 4.9% of the tourism industry’s GDP contribution in that period. Guest spending through Airbnb reached approximately RM 7 billion, with most expenditures occurring outside accommodation costs. This spending went towards restaurants, retail outlets, and transportation services.
Kuala Lumpur, Selangor, Johor, Penang, and Sabah were identified as the top five states benefiting from Airbnb activities. In Selangor alone, guest spending rose to about RM 1 billion in 2022*, marking an increase of 85 percent compared to pre-pandemic levels.
Domestic travelers formed a significant majority of Airbnb guests in Malaysia during this period. In 2022*, they represented 81% of total guests—an increase from 63 percent in 2019. Their spending totaled almost RM 4 billion or roughly 58 percent of all Airbnb guest expenditures in Malaysia.
The report also notes two shifts in travel behavior since the pandemic: a movement away from urban centers towards rural destinations and a rise in long-term stays due to flexible work options.
James Lambert, Director for Economic Consulting in Asia for Oxford Economics said, “Airbnb has been at the heart of some of the trends reshaping the nation’s travel and tourism industry, including the shift in travel away from cities and towards more rural communities. There has also been an increase in demand for long-stay trips, as exemplified by the live and work anywhere phenomenon and the platform’s recent partnership with the Malaysia Digital Economy Corporation to attract more digital nomads.”
Amanpreet Bajaj, Airbnb’s General Manager of Southeast Asia, India, Hong Kong and Taiwan said, “Domestic travelers have been crucial to the tourism sector’s resilience over the past three years, as Malaysian guests saw opportunities in domestic travel as a substitute for international holidays. Self-drive and regional trips grew in popularity, which led to a wider dispersion of tourism spending outside traditional hotspots in Malaysia.”
“The economic contribution to both GDP and jobs driven by travel on Airbnb in Malaysia has created powerful economic ripple effects that have enabled the growth of local businesses, such as shops, restaurants, bars, and cafes — which are often central to how travellers experience a destination — and created job opportunities for the locals.”
“Travel is becoming increasingly dispersed to more destinations, this helps enable a valuable economic contribution to more rural and regional areas. As Malaysia’s tourism sector continues to recover, we are committed to partnering with governments and communities to rebuild their tourism economies in a way that is equitable, inclusive, and sustainable,” he added.
*Note: The figures referenced cover April 2022 through March 2023.*