The Gross Value Added (GVA) of accommodation services in Malaysia has shown significant fluctuations over the past decade. From 2013 to 2019, there was a consistent upward trend with an average Compound Annual Growth Rate (CAGR) of 5.51%, reflecting a healthy expansion in the sector. However, 2020 marked a drastic decline of 54.63% year-on-year due to the impact of the COVID-19 pandemic. The industry showed signs of recovery with a strong bounce back in 2021 and continued growth in 2022 and 2023, reaching 29.58 billion Malaysian Ringgits in 2023.
Future projections from 2024 to 2028 indicate a steady, albeit slower, growth trend with a forecasted CAGR of 2.23%. This suggests a stabilization of the market post-pandemic with a moderate average annual growth rate.
Future trends to watch for include:
- The impact of digital transformation and smart technologies in enhancing service quality.
- Shifts in consumer preferences towards sustainable and eco-friendly accommodation options.
- The role of government policies in promoting tourism and infrastructure development.
- Potential external economic and geopolitical factors that could affect international travel.
