Malaysia has pulled ahead of Thailand for the second year in a row in 2025, thanks largely to a more flexible visa policy and ongoing upgrades to its tourism infrastructure.
Kuala Lumpur International Airport’s Terminal 1 has seen improvements, and new international routes are gradually making the country easier to reach for long‑haul and regional travelers.
Malaysia recorded 38.3 million tourist arrivals in 2025, officially staying ahead of Thailand for the second consecutive year. Thailand, long seen as Southeast Asia’s tourism heavyweight, saw international arrivals fall by 7% over the same period.
With visitor numbers rising, popular cities like Kuala Lumpur, Penang, Langkawi and Kota Kinabalu are seeing more hotel options and competitive pricing. If you’re planning a stay, you can compare hotels and travel packages on Trip.com to find what suits your route and budget.
Overlooking George Town from Penang Hill, one of Malaysia’s most visited cities and a major stop for international and regional travellers.
By the end of November 2025, Malaysia had already welcomed 38.3 million foreign visitors, surpassing the total number of arrivals for the whole of 2024.
For airlines and travelers, this steady growth means more frequent flights, busier hubs, and potentially more choice on regional and long-haul routes.
Visa policy has been a key factor. Chinese travelers continue to benefit from an extended visa-exemption scheme for another five years, with an option on the table to stretch this waiver to 2036.
Indian citizens also enjoy visa-free entry until 2026, giving easier access from two of Asia’s largest outbound markets.
Also read: Penang Travel Guide, featuring one of Malaysia’s standout destinations for 2026 according to CNN Travel.
Thailand recorded 32.9 million arrivals in 2025, its first annual drop in tourist numbers in more than ten years outside the pandemic period.
Tourism revenue also slipped, with foreign visitor income falling 4.7% to 1.53 trillion baht (about RM194 billion).
Several events contributed to the slowdown. Concerns among Chinese travelers grew after the high-profile abduction of actor Xing Xing in January 2025, followed later by a 7.7-magnitude earthquake and military clashes along the Thai‑Cambodian border.
Together, these issues added an extra layer of uncertainty for airlines, tour operators, and travelers weighing up where to spend their next Southeast Asia holiday.
For travellers planning Southeast Asia trips in 2026, Malaysia’s stability, visa flexibility, and improving connectivity make it an increasingly attractive choice.