Malaysia has just made a historic leap in Southeast Asian tourism. For the first time in recent years, Malaysia has surpassed Thailand in international tourist arrivals during the first half of 2025.
From January to May, Malaysia recorded 16.9 million international arrivals, outpacing Thailand’s 16.61 million. This isn’t just a number—it’s a symbol of a major shift in the region’s tourism landscape!
Once Thailand, Now Malaysia
Thailand has long been considered the tourism king of Southeast Asia. But 2025 is telling a different story.
Malaysia has emerged as the region’s new tourism star, and it’s no coincidence. Visa-free policies, increasingly sophisticated infrastructure, and aggressive tourism campaigns have all played key roles in boosting visitor numbers.
In the first quarter of 2025 alone, Malaysia attracted 10.1 million foreign tourists, compared to Thailand’s 9.5 million. Other regional players like Vietnam and Singapore also fell behind, with 6 million and 4.3 million arrivals respectively.
The Secret to Success: Visa-Free Access & Modern Infrastructure
One of Malaysia’s biggest advantages lies in its progressive visa-free policy. Tourists from China and India—the two most populous countries in the world—can now enter Malaysia without a visa.
For Chinese citizens, the visa waiver has even been extended for five more years, with the possibility of extension until 2036. Meanwhile, Indian travelers will enjoy visa-free entry until at least 2026.
This policy doesn’t just simplify travel—it encourages longer stays and higher spending. The result? Tourists from Singapore, China, and Indonesia have become Malaysia’s top contributors this year. In fact, over 4.9 million visitors from Singapore alone were recorded in the first three months of 2025.
Malaysia hasn’t stopped at policy reforms. On the infrastructure front, Terminal 1 of Kuala Lumpur International Airport (KLIA) has just undergone a RM30 million (approximately US$7 million) renovation. The goal? To accommodate the surge in arrivals and ensure a smooth, comfortable travel experience.
Safe and Under Control
It’s not just about comfort—security is also a top priority. Malaysia has taken proactive measures by denying entry to hundreds of foreign passengers arriving on flights deemed high-risk. Security has been tightened at airports across the country to ensure that tourists feel safe throughout their stay.
Meanwhile, in Thailand...
Thailand, on the other hand, is facing a challenging period. The number of Chinese tourists has dropped dramatically—down 34% compared to the previous year.
Why? A series of high-profile incidents has shaken the country’s image of safety. In January, the kidnapping of a Chinese actor in Thailand—linked to a transnational scam syndicate—sparked widespread concern. Just as the country was recovering from the scandal, a deadly earthquake on March 28 further damaged its reputation.
Adding to the turmoil, a military conflict along the Thailand-Cambodia border has led many tourists to cancel trips, particularly to areas near the conflict zone. These combined crises have resulted in a 4.6% drop in total international arrivals in Thailand during the first half of 2025.
Vietnam Accelerates
While Thailand struggles, Vietnam is on the rise. In the first quarter alone, the country welcomed 1.6 million visitors from China—surpassing Thailand’s total for the same group.
The launch of several new direct flights between Chinese and Vietnamese cities—such as Hanoi–Chengdu and Hanoi–Xi’an—has made travel more convenient. This reflects a growing trend: tourists are increasingly choosing destinations that are affordable, culturally rich, and most importantly, safe.
Malaysia's Target: 35 Million Tourists by 2026
Malaysia is not slowing down. The government is aiming for 31.3 million international visitors in 2025 and 35.6 million in 2026 during the Visit Malaysia Year campaign. Tourism revenue targets are equally ambitious, with the government expecting to generate US$36 billion in 2026.
Airlines such as Sichuan Airlines, Hainan Airlines, and China Eastern have already launched new routes to Malaysia, including to Penang and Kuala Lumpur—making it even easier for Chinese travelers to explore the country’s diverse attractions.
How Is Thailand Responding?
Thailand isn’t standing still. The government is rolling out a recovery strategy focused on medical tourism, luxury travel, and long-stay packages such as “work-from-anywhere” programs. A US$121 million stimulus has been allocated to boost promotions, including ramping up charter flights from China.
However, regaining its former dominance in Southeast Asian tourism won’t be easy. Thailand now faces not only intense competition from Malaysia and Vietnam, but also a trust deficit due to ongoing safety concerns.
