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Malaysia steps on the gas to become Southeast Asia's tourist hotspot, Indonesia still lags behind.

Saturday, 11 October 2025 | 09:00

Author: Arif S

Kuala Lumpur Malaysia
Malaysia leads Southeast Asian tourism.
Source: Pixabay

Malaysia has emerged as the brightest star in Southeast Asia's tourism competition map. In the first eight months of this year, the neighboring country successfully attracted 28.2 million international tourists. This figure places them at the top position in the region.

This achievement is not just a number, but proof of the revival of Malaysia's tourism sector post-pandemic. 

Malaysia's Ministry of Tourism stated that tourist arrivals surged 14.5 percent year-on-year.

"This reflects positive growth in foreign tourist arrivals to Malaysia," read the statement from Malaysia's Ministry of Tourism quoted from The Star.

The Malaysian government described this trend as "strong and sustainable momentum in the post-pandemic period".

In other words, Malaysia's tourism revival is no coincidence, but the result of consistent strategy.

Thailand Begins to Slow

While Malaysia surges ahead, its long-time rival Thailand is experiencing a slowdown. 

The Land of the White Elephant welcomed only 21.8 million foreign tourists during the same period in 2025.

Despite being known for years as Southeast Asia's main tourist magnet, Bangkok Post reports Thailand now recorded a 7 percent decline.

The cause? Observers believe security issues and political instability are making tourists reconsider.

Malaysia Wins Through Strategy

Tourism industry analysts assess Malaysia's victory isn't just about destinations, but policy.

They cite looser visa policies, infrastructure improvements, and massive tourism promotion campaigns as the three main weapons propelling them to the top.

Another bold move: extending the visa-free policy for Chinese tourists for five years, potentially extendable until 2036. 

This decision is highly strategic given China is one of the world's largest tourism markets.

The results are clear. In 2024, Malaysia successfully recorded 38 million international tourists, a 31.1 percent increase from 2023 and even 8.3 percent higher than pre-pandemic 2019 levels.

Indonesia: Growing, But Not Yet Catching Up

What about Indonesia? From January–August 2025, foreign tourist visits to Indonesia reached 10.04 million people.

While this is the highest record since the pandemic, compared to Malaysia (28.2 million) and Thailand (21.8 million), Indonesia still lags significantly behind.

Indonesia's potential is actually vast, with natural beauty, cultural richness, and international events. 

However, this data indicates the need for more aggressive strategies for Indonesia to compete in the race for Southeast Asia's tourism crown.