Malaysia’s tourism sector is heading into Budget 2027 with strong domestic travel demand and growing interest in how tourism spending can reach more communities.

Ahead of the Budget 2027 tabling on October 9, Airbnb has outlined several proposals for Malaysia tourism Budget 2027, including support for community hosts, stronger domestic tourism dispersal and clearer rules for short-term rental accommodation.

The proposals come as Malaysia builds on the momentum surrounding Visit Malaysia 2026 and looks towards longer-term tourism development.

Domestic tourism provides a strong base

Malaysia recorded 290.1 million domestic visitors in 2025, up 11.5% from the previous year. Domestic tourism expenditure climbed 13.6% to RM121.3 billion, according to the Department of Statistics Malaysia (DOSM). Department of Statistics Malaysia

The spending was spread across several parts of the economy. Shopping accounted for 36.9% of domestic tourism expenditure, while food and beverages represented another 16.1%. Department of Statistics Malaysia

This creates opportunities beyond established tourism centres. Smaller cities, heritage districts and rural communities can benefit when travellers spend on accommodation, food, transport and local services.

Airbnb is calling for more destination marketing, better digital visibility and stronger public-private partnerships to encourage this wider distribution of visitors.

Home sharing could support community income

Another part of Airbnb’s proposal focuses on helping more Malaysians participate in the tourism economy.

The company suggested that existing programmes such as GAMELAN and TEKUN Nasional could be expanded to cover areas including digital skills, safety, regulatory compliance and sustainable hosting.

Airbnb said it is also supporting community skills through Airbnb Academy, including a collaboration with Yayasan Kebajikan Suria Malaysia.

For smaller tourism operators and individual hosts, such programmes could lower some of the barriers to entering the digital tourism market. They may also help tourism spending reach communities that have traditionally received fewer visitors.

Accommodation needs are also changing

Home sharing is increasingly part of a broader accommodation mix rather than simply an alternative for holiday travellers.

Airbnb pointed to its support for SUKMA and Para SUKMA Selangor 2026, where accommodation was provided for athletes, families and officials. It also highlighted Airbnb.org’s collaboration with the National Cancer Society Malaysia to provide accommodation for eligible patients and caregivers.

The company said similar models could support major future events, including the 2027 SEA Games and ASEAN Para Games.

This matters as large events can create short periods of concentrated accommodation demand. Having different types of stays available may give destinations more flexibility without requiring permanent hotel capacity for temporary peaks.

Clearer short-term rental rules remain important

Regulation is another major part of Airbnb’s Budget 2027 wishlist.

The company welcomed the government’s review of the Tourism Industry Act 1992 and called for regulations that balance consumer protection, industry development and practical compliance requirements.

Airbnb also wants Malaysia’s proposed national Short-Term Rental Accommodation (STRA) guidelines to provide clearer and more consistent standards across states. It argued that requirements should remain workable for individual hosts and small operators while giving local authorities a practical framework to administer.

The regulatory discussion is significant because home sharing operates alongside hotels, serviced apartments and other accommodation providers. Clear rules can help define responsibilities for hosts, platforms, local authorities and travellers.

Airbnb already collects and remits Malaysia’s RM10-per-listing-per-night Tourism Tax for applicable bookings made through its platform, while Malaysian citizens and permanent residents are exempt. Airbnb

Tourism growth can reach more communities

Airbnb estimates that activity associated with its platform contributed about RM8.3 billion to Malaysia’s GDP in 2025, supported around 108,300 jobs and generated roughly RM3 billion in labour income. The figures come from an internal economic impact analysis using the IMPLAN model and should therefore be read as company estimates rather than official national statistics.

The broader opportunity is to ensure tourism growth reaches local businesses, workers and communities.

Malaysia’s domestic tourism figures already show considerable demand. The next stage will involve turning that demand into sustainable economic activity across more destinations while maintaining workable standards for residents, hosts and established tourism operators.

Conclusion

Budget 2027 arrives at an important point for Malaysia’s tourism industry. Strong domestic travel, Visit Malaysia 2026 and upcoming regional sporting events are creating new opportunities for destinations and local businesses.

Airbnb’s proposals put community participation, tourism dispersal and short-term rental regulation into that discussion. How these areas are addressed will form part of Malaysia’s wider effort to build a tourism economy that creates benefits beyond its traditional visitor hubs.