Tourism is money to the local business, which country has the most?

Tourism is money to the local business, which country has the most?

Do you currently operate a homestay business? This article tells you that your opportunities are growing. If you are working in the hotel industry, just need to ensure your hotel continues its great service and people will continue to book them too. Malaysia has attracted ever higher number of tourists and below is a look at the numbers.

Take a look at the below latest chart from visualcapitalist.com

Top tourism dollar earners in Southeast Asia?

In 2024, Malaysia has more tourists than Thailand for the first time in a long time. However, Thailand earns a higher revenue than Malaysia. Singapore has less tourists than Malaysia too and it has earned a higher revenue from tourists versus Malaysia as well. If we look at it from the revenue per tourist, it means the tourists to both Thailand and Singapore are spending more per person than those who visited Malaysia. Of course it could also meant that the cost of accommodation or food is higher too. One night’s stay in Singapore is easily 3 times the price in Malaysia.

In North America and the Caribbeans USA dominates

USA earned US$215 billion and this is double that of the next 3 countries combined; Canada, Mexico and Dominican Republic. US$215 billion is also double that of the four top Southeast Asia countries too. In other words, tourism can really earn a huge amount of revenue for the country and we really do need to focus efforts on tourism especially in 2026 when it’s Visit Malaysia year too.

How does tourism help the local economy anyway?

When they arrive, they will need to get transport to the hotel. They will pay for their GRAB ride or maybe they prefer to take the train etc or maybe they take the airport limo but yes, they will have to spend money. The money they paid these drivers would be spent by the drivers for their meals etc. They will pay the hotel and the hotel will be employing the reception desk, the cleaners, the waiters etc. More people get paid and more people can then spend.

The tourists will then spend their money for food, for experience, for sights and sound and all these will drive the economy when more people get paid with money which the tourists brought from their home country. If it’s not the hotel, then it’s the homestay owners who would benefit and the economic multiplier will still be happening. This is why US$1 spent (small amount for tourists) would be RM4 spent and the economic multiplier could easily be RM16 if not more…

Uncertainty does not help but I do think Malaysia is considered a safe place to travel to. Let’s wish all these overseas tourists Selamat Datang to Malaysia.

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