The dynamics of global tourism have undergone a transformative shift as the world charts its course towards recovery. While certain destinations are witnessing a surge in tourist arrivals, others are grappling to reach pre-pandemic levels, highlighting the evolving landscape of tourism and shifting traveller behaviours.
Drawing insights from industry experts and seamlessly integrating them into business plans becomes pivotal for success in 2024. Identifying key travel trends, emerging markets, and significant developments are instrumental for all destinations.
For travel businesses, including Destination Management Organisations (DMOs), hotels, travel agents, and product owners, responding strategically to these shifts is essential to capitalise on the unfolding opportunities.
In this Rest and Rehlah (RnR) issue, experts share their insights and uncover the latest trends and developments in the tourism industry, offering valuable perspectives to help tourism players prepare and stay ahead in their recovery journey.
Tourism Malaysia
CHANGES IN TRAVELLERS BEHAVIOURS
Tourism Malaysia Deputy Director-General (Promotion) Datuk Musa Yusof highlighted the slower tourism recovery in the Asia-Pacific (APAC) region compared to the other areas. One key factor contributing to this is the delayed reopening of the Chinese market, which is crucial for tourism recovery.
He explained that Chinese operators, affected by the ongoing impact of Covid-19, need time to recover in business operations. The emphasis in China is currently on vigorously promoting domestic tourism due to its large market size. However, as they gradually resume international travel, the figures show a rapid increase. He stressed the importance of targeting the high-yield tourist segment in the China market.
“The trends have changed. For the China market, it’s different from before. Previously, there were a lot of group-inclusive tours (GIT). Still, after Covid-19, there’s been a shift towards smaller groups or free independent travellers (FITs) within their circles of friends and relatives. Large group tours are no longer the norm. Now, there’s a preference for experiential tourism and slow tourism. They want to have more meaningful experiences.”
Musa said today’s travellers primarily sought new experiences, exploring different restaurants and cuisines, visiting local landmarks, and attending traditional arts and cultural events. They are inclined towards experiencing cultural heritage and tend to be more adventurous.
“In the post-pandemic era, the focus is on value for money. Travellers have become more price-conscious. They inquire about responsible tourism, questioning whether destinations contribute to pollution or align with Sustainable Development Goals (SDGs). Additionally, they seek flexible offerings and, of course, prefer multiple destinations.”
THE INCREASE OF CROSS-BORDER TOURISM
In addition to the resilience of domestic tourism, cross-border travel has become a key element in Malaysia’s efforts to rejuvenate its tourism sector. Examining the Southeast Asian region, Musa highlighted Vietnam as an emerging market for the tourist generation due to the increasing middle-income group and positive economic growth. The rising number of middle-income individuals there has led to an increase in outbound travel.
“As of April 1, 2022, we welcomed a MICE delegation from Vietnam. Vietnamese visitors come to the city for shopping and, to some extent, theme parks. Our primary focus in Asia is on Indonesia and Vietnam.
“In Indonesia, we currently target the western and central regions, with plans to expand to the eastern part. Nusantara is opening up. With the ongoing development in Eastern Indonesia, which has a population base of about 40 million, we anticipate tapping into Kalimantan, Makassar, and other areas. While there is existing connectivity, it is not as extensive as in Sumatra and Java, so we need to enhance it.”

Musa highlighted the existing cross-border tourism between West Malaysia and Indonesia. There are 10 Customs, Immigration, and Quarantine (CIQ) complexes between Indonesia and Sarawak, with the largest being CIQ Tebedu and CIQ Biawak. Many Indonesian travellers from that region typically use express buses to enter Malaysia.
Apart from Indonesia and Vietnam, Musa also identified Thailand, Singapore, and Brunei as critical countries for Malaysia’s cross-border tourism.
EXPLORING UNIQUE NICHES AND GRANTS
Regarding tourism development for 2024, Musa highlighted the exploration of new tourism product niches by states in Malaysia. For instance, Perlis is focusing on developing its ecotourism sector.
Musa also expressed optimism about the positive impact of the visa liberalisation initiative on increasing arrivals. His message to local industry players is to embrace creativity and innovation, encouraging them to reinvent or refresh existing offerings to make them stand out.
He emphasised the importance of introducing new products, such as those centred around ecotourism, sustainability, and astro-tourism, as seen in Sabah and Taman Negara, Pahang.
“We also emphasise business travellers for the bleisure segment, which combines business and leisure. These individuals may be attending MICE events or meetings, and we encourage tourism operators to focus on this segment.”
Musa said bleisure travellers might initially arrive alone, with family members joining them later. With this scenario in mind, shopping centres could provide these travellers with integrated tourism experiences, including theme parks, ice skating, cinemas, and spas. These initiatives to entice bleisure travellers help contribute to the development of retail space.
Musa also highlighted the Geran Stimulus Penerbangan Antarabangsa dan Charter (GSPC), allocated by the government at RM23 million in 2024 to revitalise the tourism sector. Charter and scheduled airlines seeking to increase frequencies or open new routes can apply for the grant. The funding supports marketing and promotion efforts, ensuring effective in-market marketing to boost plane occupancy.
Tourism Malaysia, formerly known as the Tourist Development Corporation, was established in 1972 and became the Malaysia Tourism Promotion Board in 1992. Today, its primary mission is to promote Malaysia’s tourism both domestically and internationally.
DinarStandard™
HEALTH AND WELLNESS AND BLEISURE TOURISM
DinarStandard Partner Reem El Shafaki,, highlighted several critical signals of opportunity identified in the State of the Global Islamic Economy Report 2023-24, focusing on tourism. One of the opportunities identified is in health and wellness tourism.
“Health and wellness tourism is a thriving sub-sector, poised for continued growth. Remarkably, it’s not just hospitals and medical spas in the limelight; hotels are now stepping into the healthcare arena, offering services like IV drips and stem-cell therapies.
“Alongside this, emotional and mental health retreats are experiencing a surge, reflecting an evolving consciousness around mental well-being. Industry players should seize this opportunity by customising offerings for Muslim travellers. They may consider, for example, wellness rooted in Prophetic traditions and infusing spirituality into emotional health retreats.”
According to the report, another critical opportunity in the tourism industry is bleisure tourism, seamlessly blending work and leisure for a fulfilling travel experience. Reem said the post-Covid-19 era has normalised remote work, catalysing this bleisure tourism surge. This trend involves employees and business owners combining business trips with leisure activities. Travellers are increasingly extending their stays to enjoy tourist attractions or working remotely from picturesque locations while balancing work and leisure. This shift reflects the growing importance of work-life balance in modern travel preferences.
“Accommodating the needs of business travellers who blend work and leisure is pivotal. Hotels and travel agencies must adapt to this evolving trend.”
TOURISM REVOLUTION DRIVEN BY AI
The State of the Global Islamic Economy Report 2023-24 also highlights a promising trend in Artificial Intelligence (AI) in tourism.
“AI is revolutionising travel across multiple fronts, from virtual assistants providing personalised recommendations to executing data-driven target marketing campaigns. AI-driven pricing strategies, predictive analytics, and data-driven insights transform travel businesses’ operations.
“AI’s data-driven approach also allows for sentiment analysis on customer
reviews to identify improvement areas and expedite visa processing for smoother travel experiences. Travel businesses should prioritise AI integration across the travel value chain, encompassing areas such as customer service, product development, marketing campaigns, and operations,” said Reem.
OPPORTUNITIES FOR COUNTRIES WITH RICH ISLAMIC TRADITIONS
Reem stated that spiritual retreats were on the rise. More and more companies have started to organise spiritually-focused retreats for Muslims keen to experience a tourism destination while increasing their spirituality. Travel companies have an opportunity to concentrate on and scale this product offering to meet the growing demand.
“For example, The Productive Muslim and HalalTrip organise annual spiritual retreats that combine spirituality with the cultivation of productive habits. Another growing trend in the Islamic economy space involves businesses choosing to host their corporate retreats in countries with rich Islamic traditions like Turkiye, Morocco, and Jordan. These retreats often integrate spiritual elements and visits to heritage sites.”

She highlighted that Saudi Arabia strategically channels investments into its tourism sector, emphasising luxury, adventure, and heritage tourism. The government’s proactive initiatives are drawing increased involvement from the private sector, thereby reshaping the global tourism landscape.
“Notably, the Public Investment Fund (PIF) has established Asfar, a tourism investment company, to encourage private sector participation in the country’s tourism endeavours. This move creates co-investment opportunities and invites private sector collaboration, making Saudi Arabia an attractive destination for both travellers and investors in the coming years.”
DinarStandard™ is a growth strategy research and execution management firm dedicated to empowering organisations for profitable and responsible global impact.

OPPORTUNITIES IN THE MUSLIM TRAVEL MARKET
Malaysia Aviation Group (MAG) CEO of Airlines, Ahmad Luqman Mohd Azmi, noted a significant trend in the travel industry—the increasing acknowledgement of the economic potential within the halal tourism market and the demand for Muslim-friendly destinations. He said Malaysia’s recognition as the ‘Best Muslim-friendly destination’ underscored the opportunities for countries and businesses to tap into this growing market. This involves providing a diverse range of halal-certified services, culinary options, and prayer facilities to cater to the expanding market.
“As the national carrier, Malaysia Airlines takes pride in contributing to inbound and outbound tourism, facilitating connectivity from our main gateway in KL International Airport to the world. This aligns with our broader goal of promoting Malaysia as a premier destination, showcasing the rich cultural heritage, stunning landscapes, and vibrant cities.”
SUSTAINABILITY AND DIGITALISATION
“Another notable trend in the tourism industry is the increasing emphasis on sustainable travel. In response to consumers making more environmentally conscious choices, airlines, hotels, and tourism operators have introduced eco-friendly initiatives.
“For instance, Malaysia Airlines launched a voluntary carbon offset programme earlier this year, allowing customers to calculate, understand, and offset the emissions associated with their flights. This trend is expected to gain momentum in 2024, as travellers prioritise destinations and experiences that align with their values,” shared Luqman.

He highlighted that the third key trend centres on the need for timely and personalised digital solutions, emphasising the overarching role of digitisation and technology in shaping both the industry and consumer decisions. In the context of Muslim-friendly destinations, this may entail offering digital tools for halal dining recommendations, locating prayer spaces, and providing cultural insights.
“By leveraging technology to enhance the overall travel experience, destinations can cater to the preferences of tech-savvy Muslim travellers, creating a more engaging and immersive journey.
“To stay competitive, tourism industry players will likely need to adopt a similar personalised approach, offering bespoke tour packages, accommodation options, and exclusive experiences that resonate with the individual preferences of travellers. Flexibility and agility will be key in adapting to evolving consumer preferences.”
Malaysia Aviation Group (MAG) is a global aviation organisation comprising three focused business portfolios: Airlines, Loyalty and Travel Services (LTS) and Aviation Services.
Pear Anderson
GROWING DEMAND FOR SUSTAINABILITY
Pear Anderson Director Hannah Pearson noted a growing demand for sustainable travel options from consumers worldwide.
“In Asia, a Booking.com survey showed that 73 per cent of Vietnamese travellers would be willing to pay more for sustainable accommodation choices. A study from HHWT in 2023 showed that Malaysian, Singaporean and Indonesian Muslim travellers were more likely to engage in sustainable tourism. However, higher perceived costs of sustainable options is still a limiting factor.”
She emphasised that those in the travel industry must note this growing trend. She believes it is crucial for them to expand their database of sustainable suppliers and pose pertinent questions to their supply chain regarding their sustainability practices.
VISA WAIVERS AND MUSIC AND EVENT-BASED TOURISM

Pearson said Asian countries were increasingly introducing visa waivers, especially for Chinese and Indian nationals. There’s also a reciprocal waiving of visas, like Malaysians being able to visit China without a visa. She stated that travellers prefer destinations that are easily accessible, and the travel industry should be prepared for a change in source markets and preferred destinations in 2024 due to the effects of these developments.
“Travelling for concerts or events as the main purpose of a trip is growing in popularity across the region, with consumers willing to spend more to see their favourite artist, show or participate in a sporting event. The travel industry needs to keep a keen eye on these events taking place not only in Malaysia but overseas, too, to be able to quickly react to market demand.”
Pear Anderson is a market intelligence and sales representation agency based in Malaysia. It specialises in Muslim-friendly travel and the Southeast Asian tourism industry.
Melewar Group
THE DEVELOPMENT AND TRENDS FOR AIRLINES
Melewar Group Berhad Group Executive Chairman Tunku Dato Seri (Dr) Iskandar Tunku Abdullah shared that the global air traffic would reach more than 95 per cent of the pre-pandemic levels in 2023, and by 2024, the level is expected to overtake 2019’s pre-Covid volume. Asia-Pacific recovery had been lagging partly because China’s markets had been slower to take off, although air travel within and from India had a significant uptick.
“Malaysia recently reported that passenger volumes to its airports are up 27.4 per cent year-on-year, auguring well for the travel and tourism industry in Malaysia and Southeast Asia. This trend has also been underlined by local and foreign airlines’ announcements of their latest services in and out of KLIA and other Malaysian airports.
“It is interesting that several of these services will connect Malaysians to destinations with significant Islamic influence and likewise connect residents in those markets with destinations in Malaysia.”
He shared that both BatikAir Malaysia (OD) and Air Asia (AK/D7) had taken the lead in flying to some of these new destinations. In June 2023, OD started its flights to Male, the capital of Maldives, known as the “honeymoon” destination and where almost 100 per cent of the population is Muslim. They also launched flights to Jeddah, connecting Malaysia with Saudi Arabia. Their services to the Middle East continued to expand with the launch of their flights to Dubai, UAE.
CONNECTING TO MUSLIM-FRIENDLY DESTINATIONS
“OD’s services continued its expansion by launching its flights to Pakistan’s Karachi in addition to their existing services to Lahore. Then Central Asia was their next piece of the network when they began their flights to Tashkent, Uzbekistan, in December 2023, and they have also announced plans for their services to Istanbul, Turkiye, where they will use Malaysia Airports’ Sabiha Gökçen Airport.”

Tunku Iskandar mentioned that AirAsia X is set to commence flights to Almaty, Kazakhstan, in April 2024. Air Astana, the national airline of Kazakhstan, had previously suspended flights to Kuala Lumpur during the Covid pandemic. However, they have now revealed plans to resume flights in 2024.
“Several airlines from Islamic countries that already have flights to Malaysia have mostly either maintained their schedules or increased their frequencies. These include Emirates, Etihad, Qatar, Turkish and Saudia.
“However, amongst the other airlines that have launched flights to Malaysia is Salam Air, from Muscat in Oman. Dubai’s low-cost airline, FlyDubai, has also announced they will launch services from Dubai to Penang and Langkawi in February 2024. It also seems that Turkmenistan Airlines, which used to ply between Ashgabat and Kuala Lumpur until 2015, may also re-introduce its services later in 2024. One notable flight suspension is Kuwait Airways from Kuwait City.
“These exciting developments, if sustained, will be able to provide Malaysia access to the burgeoning Islamic travel market. CrescentRating has forecasted that the market will return to 160 million in 2024 due to the expansion of international travel and that the 230 million arrivals predicted before the epidemic may be attained by 2028, at which point spending will amount to US$225 billion.”
Tunku Iskandar emphasised that for Malaysia to attain enduring success, there must be a two-way demand for airline seats and a fair marketplace. Nurturing the Malaysian travel market is crucial to sustaining and fostering outbound travel demand to those destinations.
“Airfares have to remain marketable and affordable, and competition has to avoid being predatory. Malaysia also has to ensure that visitors to our country have interesting attractions and that hotel rates remain reasonable. Let us ensure that we do not kill the goose that lays the golden eggs.”
Melewar Group Berhad’s Travel and Tourism division comprises several tour & travel companies that include Mitra Malaysia Sdn Bhd, Mitra Kembara Sdn Bhd, Rama-Rama Holidays Sdn Bhd, Pacific World Travel Sdn Bhd, World Express Sdn Bhd as well as APG Malaysia Sdn Bhd and APG Singapore Pte Ltd. All the companies, in one way or another, are involved in travel from and to Islamic markets and destinations.
Tripfez Travel & Tours
INCREASED DEMAND FOR TAKAFUL-BASED TRAVEL INSURANCE
Tripfez Travel & Tours Sdn Bhd Managing Director Faeez Fadhlillah said the business travel industry had rebounded at a much faster rate than projected and was expected to surpass the pre-pandemic level by mid-2024 and reach US$1.4 trillion by the end of 2024.
“The Muslim corporate travel market sees similar trends and is expecting to reach US$420 mil in total spending by 2024. This represents a staggering increase of 32 per cent in 2023 and 47 per cent in 2022. The rapid growth of business travel is backed by strong consumer demand and rapid economic growth in 2023.
“In Malaysia, Muslim corporate travel showed similar growth trends, with many corporate companies resuming their travel spend and ceasing work from the work-from-home policy.
“2023 also saw increased competition in supply with many airlines resuming and increasing routes and many new hotels popping up after three years of stagnant growth due to the movement control order restrictions.”

Faeez noted one trend observed in 2022 was the increased demand for takaful-based travel insurance in line with many corporate companies’ increased focus on Islamic finance, especially amongst GLCs and MNCS in Malaysia.
“Thirty-one per cent of corporate companies are currently using Takaful-based travel insurance for their employees’ corporate travel, with 37 per cent indicating the desire to switch from conventional-based travel insurance to takaful-based travel insurance. This trend is expected to give rise to the growth of takaful travel insurance volume in 2024.”
Tripfez is the leading travel management company specialising in leisure, umrah, and corporate travel.

Pacific Asia Travel Association (PATA) CEO Noor Ahmad Hamid said: “As more and more destinations get back to pre-pandemic levels, it is important to remember that since 2019, the travel and tourism landscape has evolved, influenced by geopolitical events, technological advancements, and changing consumer preferences.”
He highlighted three major trends shaping the future of the travel and tourism industry: Sustainable and responsible travel, technological advancements, digitalisation, artificial intelligence (AI), and experiential travel.
SUSTAINABLE AND RESPONSIBLE TRAVEL
a. Carbon-Neutral Travel: Airlines and travel companies are investing in carbon offset programmes to neutralise the environmental impact of travel. This includes the development of more fuel-efficient aircraft, using sustainable aviation fuels, and offsetting carbon emissions through reforestation and renewable energy projects. For example, the Association of Asia-Pacific Airlines (AAPA) members, including Singapore Airlines, have pledged to strive towards a target of five per cent sustainable aviation fuel use by 2030.
b. Green Accommodations: Eco-friendly accommodations are on the rise, implementing sustainable practices such as waste reduction, energy conservation, and using locally sourced materials. Certification programmes like LEED and EarthCheck are becoming standard benchmarks for environmentally conscious travellers.
c. Community-based Tourism:Travellers are increasingly seeking authentic, community-based experiences that engage with local communities, support local businesses, and participate in responsible tourism practices, thereby contributing positively to local economies.
TECHNOLOGICAL ADVANCEMENTS, DIGITALISATION AND ARTIFICIAL INTELLIGENCE (AI)
a. Virtual Travel Experiences:VR will enable travellers to explore destinations and attractions from their homes, aiding in trip planning and allowing individuals to make more informed decisions about the destinations they plan to visit.
b. Augmented Reality Navigation: AR can enhance on-the-ground experiences by providing real-time information and interactive overlays on historical sites, landmarks, and points of interest. AR apps can guide travellers through unfamiliar locations, offering insights and enhancing the overall cultural experience.
c. Remote Work and Travel Integration: With the rise of remote work, travel and tourism will intertwine with work experiences. Digital nomads and remote workers will seek destinations that offer both a conducive work environment and enriching cultural experiences. As a result, over 19 Asia Pacific destinations have issued visas specifically designed for digital nomads, and the numbers are rising to accommodate the demand.
d. AI-Powered Personalisation: AI will play a pivotal role in personalising travel experiences, from suggesting customised itineraries based on preferences to providing real-time recommendations for dining, activities, and attractions. According to a global survey of 20,000 respondents across 14 countries conducted by Expedia Group in 2023, nearly 40 per cent of respondents would now be likely to use generative AI to help find a hotel or vacation rental, a third would use it to compare flight options or get inspiration on where to go, and 35 per cent would use it to find activities and things to do.
e. Contactless Technology Adoption:Touchless check-ins, digital key access, and cashless transactions will become standard in the travel industry. Mobile apps will serve as comprehensive tools, allowing travellers to manage bookings, access information, and make payments seamlessly.
EXPERIENTIAL TRAVEL
a. Authentic Cultural Immersion:Travellers increasingly seek more than just superficial experiences; they want to engage with the local culture on a deeper level. This involves participating in cultural activities, interacting with locals, and gaining insights into the traditions and customs of the destination.
b. Hands-On Activities: Travellers are now actively participating in activities that allow them to learn new skills or better understand local practices. This can include cooking classes, artisan workshops, or outdoor adventures that provide a genuine connection to the destination.
c. Bespoke and Niche Experiences: Travellers are seeking tailor-made itineraries that align with their interests and preferences, whether it’s exploring a specific aspect of a destination’s history, indulging in unique culinary experiences, or engaging in adventure sports.
d. Off-the-Beaten-Path Exploration:The desire for unique and off-the-beaten-path experiences is on the rise. Travellers are venturing beyond popular tourist spots, exploring hidden gems, and discovering less crowded destinations that offer rich and authentic experiences.
e. Wellness and Mindful Travel: Wellness-focused travel experiences are gaining popularity, emphasising activities that promote relaxation, mental well-being, and physical health. This includes wellness retreats, spa experiences, and opportunities for mindfulness in serene natural settings.

“As we enter 2024, the travel industry undergoes transformative evolution, shaped by sustainability, technology, and changing preferences. Embracing these trends contributes to a more sustainable and connected global tourism landscape,” Noor concluded.
The Pacific Asia Travel Association (PATA) is a not-for-profit membership-based association that acts as a catalyst for the responsible development of travel and tourism to, from and within the Asia Pacific region.
