Rising airfares, fuel costs and Middle East-related travel disruptions cloud the Malaysian state’s tourism outlook, although receipts remain strong.
Sarawak recorded 3.52 million visitor arrivals between January and September 2026, with neighbouring Brunei and Indonesia accounting for 46.5% of the total. However, rising travel costs and international flight disruptions have raised doubts over whether the Malaysian state can achieve its annual target of five million visitors.
Dato Sri Abdul Karim Rahman Hamzah, Sarawak’s minister of tourism, creative industry and performing arts, shared the figures during his winding-up speech at the state legislative assembly on October 20. He said the state continued to attract visitors from key Southeast Asian markets, including Singapore, Thailand and the Philippines.
Sarawak’s tourism sector has recovered significantly since the Covid-19 pandemic, when visitor arrivals fell to around 230,000 in 2021, compared with 4.66 million in 2019. The state welcomed 4.83 million visitors in 2024 and 4.97 million in 2025, narrowly missing its five-million target last year.
The outlook for 2026 has become less certain amid higher airfares, rising fuel prices and disruptions associated with the conflict in the Middle East. These factors have prompted some prospective visitors to change their flight itineraries or reconsider travel plans.
Speaking on October 23, Abdul Karim said he expected arrivals to exceed four million by the end of the year, although reaching five million remained uncertain. The state will have a clearer picture of its annual performance as the final quarter progresses.
Tourism receipts remain resilient
Despite uncertainty over visitor numbers, Sarawak’s tourism revenue has remained encouraging. The state generated RM9 billion in tourism receipts during the first nine months of 2026, averaging more than RM1 billion a month.
For the full year in 2025, tourism receipts reached approximately RM12.67 billion, an increase of 1.75% from the previous year. The figures highlight the sector’s economic contribution even as the state continues working towards its visitor-arrival target.
Sarawak is seeking to broaden its tourism offering through eco-tourism, sports tourism, health tourism, cruise tourism and business events, alongside arts, culture and heritage. The strategy aims to diversify visitor experiences and strengthen spending across the wider tourism economy.
Southeast Asia remains a core source market
Visitors from Brunei and Indonesia together represented nearly half of Sarawak’s arrivals in the January–September period, underlining the importance of regional connectivity and short-haul travel to the state’s tourism performance.
Singapore, Thailand and the Philippines also contributed to arrivals. Maintaining access from these markets will remain important as the state navigates higher transport costs and uncertainty in international aviation.
The strong contribution from neighbouring countries also highlights the role of regional travel in supporting Sarawak’s hotels, restaurants, tour operators, transport providers and attractions.
Sarawak My Second Home programme attracts international applicants
Alongside conventional visitor tourism, the Sarawak-Malaysia My Second Home (S-MM2H) programme continued to attract international applicants. Between January and September 2026, the programme recorded 287 approved applications involving 490 participants from 31 countries.
China was the largest source country, accounting for 118 approvals, or 41.1% of the total. The United States followed with 28 approvals, Taiwan with 19 and the United Kingdom with 18. Australia and Canada recorded 13 approvals each.
The approved applications generated RM143.5 million in fixed deposits and RM1.49 million in processing fees, according to the minister.
The programme forms part of Sarawak’s wider effort to attract longer-stay international residents and diversify the state’s tourism-related economic activity.
With visitor arrivals already above 3.5 million by the end of September, Sarawak is heading into the final quarter with a substantial visitor base and robust reported tourism receipts. Whether it can reach five million arrivals will depend on year-end travel demand, international connectivity and the impact of higher travel costs. The state nevertheless expects to surpass four million visitors in 2026.
