Malaysia’s Holiday Home Sector Generated RM2.2 Billion
Malaysia had 71,101 holiday homes operating nationwide in 2025, generating an estimated RM2.2 billion in revenue, according to the Department of Statistics Malaysia.
The figures were published in the Holiday Homes Statistics Bulletin: Economic Census 2026, the country’s first official statistical publication providing holiday home data by state and district.
Chief Statistician Datuk Seri Dr Mohd Uzir Mahidin said the sector’s continued expansion reflected growing demand for alternative accommodation and its increasing contribution to tourism-related activities and Malaysia’s broader services economy.
The release is significant because it gives policymakers and industry participants a clearer official baseline for a sector that has previously been discussed largely through platform listings, operator estimates and individual market observations.
For the property market, the numbers confirm that holiday homes have become an established accommodation category. However, the RM2.2 billion revenue figure should be interpreted at national level. It does not mean every condominium, serviced apartment or landed holiday home produces attractive returns.
Selangor Recorded The Highest Number Of Holiday Homes
Selangor recorded 19,095 holiday homes in 2025, the highest number among all states and representing more than one-quarter of the national total.
Kuala Lumpur ranked second with 8,207 units, followed by Johor with 7,274 units.
Together, the three markets accounted for 34,576 holiday homes, or almost half of the nationwide supply.
DOSM attributed the concentration to stronger tourism demand, extensive transport networks, active economic environments and proximity to major visitor destinations.
Selangor’s position reflects the variety of short-stay demand found across the state. Holiday homes can serve airport users, business travellers, families visiting relatives, event attendees, medical visitors and tourists accessing Kuala Lumpur or surrounding attractions.
The state also contains a broad range of accommodation environments, from urban serviced apartments to suburban homes and airport-linked stays near Sepang and KLIA.
Kuala Lumpur’s market is more heavily shaped by city tourism, business travel, conferences, medical visits, shopping and short urban breaks. Johor benefits from Singapore-linked movement, family tourism, industrial travel and destinations such as Johor Bahru, Desaru and Iskandar Puteri.
Why The First Official Bulletin Matters
The bulletin is the first DOSM publication to map holiday homes by state and district.
This creates a more reliable foundation for future tourism and accommodation planning.
Before this, it was difficult to determine the real scale and geographical spread of the sector using only online booking platforms. Platform listings can include duplicate units, inactive properties, hotel inventory or homes marketed across several channels.
Official statistics allow the government to assess where holiday home activity is concentrated and how it contributes to local economies.
The data may also support more targeted decisions on licensing, safety, taxation, building management, neighbourhood suitability and tourism infrastructure.
A city-centre serviced apartment in Kuala Lumpur does not operate in the same environment as a beach villa in Langkawi or a family homestay in a rural district. Better geographical data can help avoid treating all holiday homes as one uniform product.
Economic Benefits Extend Beyond Room Revenue
Mohd Uzir said holiday homes create economic spillovers through spending on accommodation, transportation, food and beverage, retail and recreational activities.
The sector also creates income opportunities for local communities and micro, small and medium enterprises.
A guest staying in a holiday home may spend on airport transfers, e-hailing, car rental, groceries, restaurants, cafés, laundries, local tours, attractions and shopping.
Owners and operators also require cleaning, maintenance, furnishing, photography, guest communication and property management services.
This means the sector’s economic impact is broader than the estimated RM2.2 billion generated directly by accommodation.
In smaller tourism destinations, holiday homes may distribute visitor spending more widely than large hotels because guests often use neighbourhood businesses and local service providers.
However, the positive impact depends on responsible operation. Poorly managed units can create security, noise, parking and waste-management issues for surrounding residents.
What The Numbers Mean For Kuala Lumpur
Kuala Lumpur’s 8,207 holiday homes show that short-stay accommodation is already a meaningful part of the capital’s hospitality market.
The city naturally attracts guests who prefer apartment-style accommodation rather than conventional hotel rooms.
Families may need two or three bedrooms. Business travellers staying for longer periods may value kitchens and laundry facilities. Groups may prefer a shared living area and lower cost per person.
Demand is often concentrated around well-connected districts such as KLCC, Bukit Bintang, TRX, KL Sentral, Jalan Ampang and areas close to MRT or LRT stations.
Nevertheless, Kuala Lumpur also has substantial competition. Holiday home operators compete not only with one another but with hotels, serviced residences and professionally managed apartment brands.
Location can generate enquiries, but long-term operating performance depends on room condition, service consistency, online reviews, pricing, occupancy and cost control.
Property Buyers Should Treat Short Stay As A Business
The official revenue figure may attract more investor attention, but holiday home ownership should not be viewed as passive rental income.
Operators must manage bookings, guest enquiries, check-ins, cleaning, repairs, utilities, platform commissions and periods of low occupancy.
A property’s gross booking revenue can appear attractive before these costs are deducted. The more relevant figure is net income after operating expenses, maintenance fees, sinking fund, furnishing replacement and financing costs.
Building rules are equally important.
Not every condominium or serviced apartment allows short-term rental activity. Management corporations may impose restrictions or operational requirements, particularly in developments with a strong owner-occupier population.
Potential buyers should confirm the current building policy instead of relying only on sales claims that a project is “Airbnb friendly”.
They should also consider whether the building is physically suitable for frequent guest turnover. Access control, guest registration, lift capacity, luggage movement, parking and security procedures affect both operations and resident comfort.
Professional Management May Become More Important
As the holiday home market matures, professional operators may play a larger role.
Managing several thousand units nationally requires systems for revenue management, guest support, housekeeping and maintenance. Larger operators may also be better able to maintain service standards and adapt pricing according to demand.
This trend is already relevant to new serviced apartment projects where developers introduce third-party hospitality or short-term rental management partners.
Such arrangements can make operations easier for owners, especially those living overseas or outside the state.
However, professional management does not remove investment risk.
Owners should examine management fees, revenue-sharing terms, minimum furnishing requirements, contract duration, termination clauses and whether any projected return is guaranteed or merely illustrative.
The operator’s scale and track record matter, but the property’s entry price and location remain fundamental.
Policy Must Balance Tourism And Residential Liveability
The availability of official data can help policymakers take a more balanced approach to the industry.
Holiday homes support tourism and local economic activity, but they can also create tension in residential buildings and neighbourhoods.
The appropriate policy may vary according to property type and location.
Purpose-designed short-stay serviced apartments may be able to manage guest movement more effectively than conventional family condominiums. Resort areas may have a stronger natural role for holiday homes than quiet residential neighbourhoods.
Clearer rules can benefit both operators and residents by setting expectations for licensing, safety, guest records, insurance and building management.
The objective should not necessarily be to encourage or restrict all holiday homes equally. It should be to support legitimate tourism accommodation while protecting residential liveability.
Conclusion: A Significant And More Visible Accommodation Sector
Malaysia’s 71,101 holiday homes and estimated RM2.2 billion in 2025 revenue confirm that alternative accommodation has become an important part of the tourism economy.
Selangor led the market with 19,095 units, followed by Kuala Lumpur with 8,207 and Johor with 7,274.
The new DOSM bulletin gives the government and industry a clearer evidence base for tourism planning, regulation and sustainable development.
For property owners and investors, the figures demonstrate real market demand but should not be treated as proof of guaranteed profitability.
Holiday home performance remains highly dependent on location, building rules, management quality, competition and operating costs.
The sector’s next stage of growth will likely require a better balance between tourism value, professional management and the expectations of residents living within the same buildings and communities.
