Tourism boom in Malaysia pushes retail sales beyond pre-pandemic levels, optimism soars

MALAYSIA: As Malaysia welcomes an influx of tourists, retailers report robust sales, surpassing pre-pandemic levels. According to The Star, with the year-end shopping season in full swing, business leaders are optimistic for continued growth into 2024.

At Pavilion Kuala Lumpur, traffic and sales have seen a significant uptick of 5-10% compared to pre-pandemic figures. Datuk Joyce Yap, Chief Executive Officer of Pavilion Sdn Bhd (Retail), noted that while group travel from Chinese tourists has decreased, the overall tourism landscape remains promising.

“Tourists from other countries are increasing, and locals and expats are also contributing to local spending,” Yap said. “The food and beverage sector, in particular, is holding strong.”

Despite this positive outlook, Yap emphasized the need for stronger collaboration between the government and private sector to promote Malaysia as a destination for tourists and shoppers alike.

The Malaysia Retail Chain Association (MRCA) forecasts a 3.9% retail growth for 2024, in line with an upward revision of the country’s Gross Domestic Product (GDP) growth, now estimated at 5.3%.

MRCA President Datuk Ken Phua pointed to the growing number of inbound tourists, expected to reach 27.3 million by the end of 2024, bringing Malaysia close to pre-pandemic tourism levels.

Phua also highlighted the role of artificial intelligence in driving growth, particularly among small and medium-sized enterprises, which could attract more foreign investment.

In addition, Sunway Mall’s CEO HC Chan reported that the company has seen strong year-end sales, particularly during the festive season.

“We’ve witnessed a surge in retail spending as customers geared up for Christmas, school holidays, and early Chinese New Year shopping,” Chan said.

“Our sales for the last week of December show an upward trend, and we anticipate a 7% year-on-year growth for December 2024.”

Overall, the retail sector is poised for continued recovery, with 2024 expected to bring another year of steady growth as Malaysia reaps the benefits of a vibrant tourism industry and increasing consumer confidence.