Malaysia has firmly established itself as Asia’s most visited country in the first quarter of 2025, attracting over 10.1 million foreign tourists and surpassing long-time regional leaders such as Thailand and Singapore. This impressive 22% year-on-year increase signals a significant shift in the region’s tourism dynamics, highlighting Malaysia’s growing prominence as a top global travel destination.

Visa Relaxation Fuels Tourism Surge

A key factor driving this surge is Malaysia’s progressive visa policies. The government extended visa-free entry for Chinese nationals for five years, with the possibility of further extension until 2036, and granted Indian tourists visa-free access through 2026.

These initiatives have dramatically lowered travel barriers for two of the world’s largest outbound travel markets, resulting in a substantial influx of visitors. Additionally, Malaysia has implemented streamlined e-visa and eNTRI (Electronic Travel Registration & Information) systems, enabling faster and more convenient entry for tourists from over 60 countries.

Singapore Leads as Top Source Market

Singapore remains Malaysia’s largest source of visitors, with nearly 5 million arrivals in Q1 2025, reflecting strong bilateral ties and seamless cross-border travel facilitated by improved transport links such as the Rapid Transit System (RTS) connecting Johor Bahru and Singapore.

China follows closely as the second-largest market, contributing 1.12 million visitors, while Indonesia ranks third with 1.08 million tourists. Other notable source countries include Thailand, Brunei, India, and Australia, indicating Malaysia’s broad regional and international appeal.

Regional Competition and Changing Travel Patterns

Malaysia’s rise comes amid evolving regional tourism trends. Thailand, historically Southeast Asia’s tourism leader, recorded 9.55 million visitors in Q1 2025, placing it second behind Malaysia. Vietnam and Singapore followed with 6 million and 4.3 million arrivals, respectively.

Malaysia’s reputation for safety, family-friendly environments, and cultural diversity has attracted travelers seeking alternatives to traditional hotspots. Meanwhile, Thailand has faced challenges including political unrest and security concerns that have impacted tourist confidence.

Strategic Infrastructure and Connectivity Investments

Malaysia’s tourism revival is supported by significant investments in infrastructure and connectivity. Since mid-2024, the Ministry of Tourism, Arts, and Culture has facilitated over 3,100 weekly international flights with a combined seating capacity exceeding 620,000, enhancing accessibility from key markets in Asia, Europe, and North America.

Major airports such as Kuala Lumpur International Airport (KLIA) and Penang International Airport have undergone upgrades to improve passenger experience. The government has also expanded tourism corridors and improved road and rail networks to popular destinations like Langkawi, Penang, and the Cameron Highlands.

Economic Impact and Industry Growth

The tourism sector’s resurgence is delivering substantial economic benefits. Malaysia welcomed 6.7 million international visitors in the first two months of 2025 alone, a 31.3% increase compared to the previous year and 14.5% above pre-pandemic levels. Total tourist receipts reached RM106.78 billion in 2024, representing a 43.7% increase over 2023 and surpassing pre-pandemic figures by 20%.

This growth has spurred job creation across hospitality, retail, transportation, and cultural sectors, contributing significantly to Malaysia’s GDP and supporting small and medium enterprises (SMEs) in rural and urban areas alike.

Diverse Attractions and Global Recognition

Malaysia’s diverse attractions continue to captivate travelers worldwide. Visitors are drawn to iconic landmarks such as the Petronas Twin Towers and Batu Caves, alongside natural wonders including the pristine beaches of Langkawi and Tioman Island, and the biodiverse rainforests of Sarawak and Sabah, home to unique wildlife like orangutans and proboscis monkeys.

The country’s vibrant cultural festivals, world-class cuisine, and warm hospitality further enhance its appeal. In 2024, Malaysia was named Asia’s “most loved country” by Insider Monkey, a testament to its growing international reputation.

Sustainability and Future Prospects

Malaysia is also committed to sustainable tourism development. Initiatives promoting eco-tourism, community-based tourism, and conservation efforts are gaining momentum, aligning with global trends and traveler preferences. The government’s 2024-2026 tourism roadmap emphasizes responsible tourism practices, digital innovation, and diversification of tourism products to include wellness, adventure, and cultural tourism.

Looking ahead, Malaysia is poised to surpass 26.2 million tourist arrivals by the end of 2025, fully recovering from the pandemic’s impact and setting new records. The upcoming Visit Malaysia Year 2026 campaign is expected to further boost international arrivals, supported by continued marketing efforts, enhanced infrastructure, and strategic partnerships with global travel stakeholders.

With its blend of strategic policy, enhanced connectivity, rich cultural heritage, and commitment to sustainable tourism, Malaysia is not only leading Asia’s tourism recovery but also redefining the region’s travel landscape as a premier destination for travelers worldwide.

flydubai has announced a new strategic interline agreement with Romania’s national carrier, TAROM, expanding travel options by providing passengers seamless access to 15 destinations across TAROM’s network via Bucharest International Airport (OTP). This partnership enables flydubai customers to enjoy simplified travel itineraries, single-ticket bookings, and through-check-in of baggage to their final destination, enhancing convenience and connectivity.

Through the agreement, travelers flying between the UAE and Romania can now easily connect to key destinations within TAROM’s domestic and international network. These include major European cities such as Athens, Amsterdam, Brussels, Cluj-Napoca, Frankfurt, Madrid, and Paris, among others. This development supports greater trade, tourism, and cultural exchange between Dubai and Eastern and Central Europe.

flydubai operates double daily flights from Dubai International Airport (DXB) to Bucharest Henri Coandă International Airport and will be adding Iași as its second Romanian destination starting from 19 September 2025. The airline has steadily grown its presence in Romania since launching flights to Bucharest in 2012, responding to rising passenger demand.

The partnership not only broadens flydubai’s network but also reinforces Dubai’s role as a global aviation hub by linking the UAE to a wider range of European destinations through efficient connections with TAROM. Business Class passengers on flydubai enjoy lie-flat seats, international cuisine, and immersive entertainment, while Economy Class travelers benefit from comfortable reclined seats with adjustable leather headrests.

With a fleet of 93 modern Boeing 737 aircraft, flydubai serves over 135 destinations in 57 countries, having launched more than 100 previously underserved routes, demonstrating its commitment to expanding global connectivity and passenger choice.

TAROM's network, reachable through this agreement, includes approximately 28 destinations across 22 countries, covering vital European cities and regional hubs, making it a strategic partner for flydubai’s continued expansion into Eastern and Central Europe.

Overall, the strategic interline agreement between flydubai and TAROM offers travelers greater flexibility, convenience, and choice, allowing seamless access between the UAE, Romania, and many prominent European destinations. This collaboration is expected to boost business and leisure travel, supporting economic ties and tourism growth in the region.

Hong Kong is increasing its Air Passenger Departure Tax (APDT) for the first time in 22 years, effective October 1, 2025. The tax will rise from HK$120 (approximately $15) to HK$200 (about $25), a 67% increase. This tax applies to passengers aged 12 and above departing by air from Hong Kong International Airport (HKIA).

The increase was enacted through the Air Passenger Departure Tax (Amendment) Bill 2025, passed by the Legislative Council in May 2025. The government anticipates that the hike will generate around HK$1.6 billion in annual revenue.

To maintain Hong Kong's competitiveness as an international aviation hub, exemptions to the tax have been expanded. Previously, direct transit or connecting flight passengers who remained airside and those who arrived and departed on the same day were exempt. From October 1, 2025, new exemptions will include:

• Passengers who arrive and depart by aircraft within 48 hours.
• Passengers arriving by land or sea and departing by aircraft within 48 hours.

Passengers eligible under these new exemptions will still be charged the tax as part of their ticket but can claim a refund through a forthcoming online portal managed by the airport. This refund mechanism aims to encourage more transfer passengers, especially from the Greater Bay Area, enhancing HKIA’s role as a regional hub.

The APDT is typically absorbed into the price of the flight ticket, so passengers may not notice a significant fare difference when booking. Tickets purchased before October 1, 2025, will not be affected by the increased tax.

While some officials worry the increase could impact Hong Kong's attractiveness compared to regional competitors, others view the hike as reasonable and necessary for government revenue and airport infrastructure support.

Gulf Air, the national airline of the Kingdom of Bahrain, has taken a major step in its long-term fleet renewal by signing an agreement valued up to USD 4.6 billion with Boeing to acquire 18 Boeing 787 Dreamliners. Powered by GE Aerospace engines, the new aircraft will enhance Gulf Air’s operational efficiency, sustainability efforts, and passenger comfort.

The deal was formalized during the official visit of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, to Washington D.C., symbolizing the strengthening economic and commercial ties between Bahrain and the United States.

Khalid Taqi, Chairman of Gulf Air Group, emphasized the significance of the acquisition: “Adding 18 additional 787 Dreamliners an aircraft highly appreciated by our customers increases our passenger capacity by over 20%, marking a crucial milestone in our growth and modernization journey. This also aligns with our strategy to deliver a more fuel-efficient, environmentally friendly, and passenger-focused travel experience. 

Partnering with Boeing and GE Aerospace, global leaders in aviation innovation, affirms our confidence in advancing Gulf Air’s future. This collaboration also highlights the strong and enduring partnership between Bahrain and the USA.”

The Boeing 787 Dreamliner is celebrated worldwide for its fuel efficiency, cutting-edge technology, and superior passenger experience. It will play a central role in supporting Gulf Air’s long-haul operations, route expansion, and sustainability initiatives.

Stephanie Pope, President and CEO of Boeing Commercial Airplanes, commented, “We are proud to deepen our more than six-decade partnership with Gulf Air by delivering the 787 Dreamliner. This investment underscores Gulf Air’s commitment to innovation and sustainable growth, strengthening Bahrain’s status in the global aviation industry.”

In conjunction with the aircraft order, Gulf Air and Boeing signed a Memorandum of Understanding (MOU) to explore establishing maintenance, repair, and overhaul (MRO) workshop capabilities in Bahrain. This initiative, still in its early stages, aims to localize MRO operations, develop local aviation talent, create jobs, and bring world-class services aligned with the latest technologies.

This strategic partnership further reinforces Gulf Air’s ambition to position Bahrain as a key aviation hub in the region, contributing to the Kingdom’s goals for economic diversification and enhanced global connectivity.

Etihad Airways has delivered its best-ever half-year results in the first six months of 2025, reporting record profitability, passenger numbers, and network expansion. The airline’s performance reflects sustained momentum in operational efficiency, enhanced customer experience, and ambitious growth plans.

Profit after tax surged 32 percent year-on-year to AED 1.1 billion (U.S.$306 million), supported by robust customer demand, productivity gains, and improved yields across passenger and cargo operations. Total revenue increased 16 percent to AED 13.5 billion (U.S.$3.7 billion), with passenger revenue rising 16 percent and cargo revenue growing 9 percent. EBITDA rose 24 percent to AED 2.7 billion (U.S.$739 million), with an improved margin of 20 percent.

Passenger traffic climbed 17 percent to 10.2 million in H1 2025, driven by a 14 percent increase in Available Seat Kilometres (ASK) and a passenger load factor of 87 percent (+2 percentage points). In early July, Etihad celebrated a milestone of carrying 20 million passengers over a rolling 12-month period—doubling the figure from 2022—and establishing itself as the fastest-growing carrier in the region.

Etihad’s operating fleet surpassed 100 aircraft, boosted by deliveries including its sixth Airbus A350 in April and the return of a seventh A380 in May. In July, the airline took delivery of five new planes, including its first A321LR, marking the largest monthly fleet expansion to date. The new A321LR, featuring First Class suites and lie-flat Business seats on medium-haul routes, launched service in early August with a flight to Phuket.

The airline’s network now serves nearly 90 destinations, including year-round and seasonal services, with 27 new routes launched or announced in 2025 alone. This expansion strengthens Abu Dhabi’s position as a major global hub.

His Excellency Mohamed Ali Al Shorafa, Chairman of Etihad Airways, said, “With 27 new destinations launched or announced this year alone, Etihad is proud to help position Abu Dhabi as one of the most accessible and connected cities in the world. This growth enhances point-to-point and stopover options and solidifies Abu Dhabi's role as a gateway for millions of travellers.”

Customer satisfaction improved across airport services, onboard experience, and digital platforms. Etihad maintained stable unit costs while raising service quality, with its First Class Net Promoter Score holding steady at 80—the airline’s highest ever and a best-in-class benchmark.

Antonoaldo Neves, Etihad CEO, expressed pride in the airline’s strong performance: “Our results demonstrate the success of our strategy and the dedication of our team. We are expanding sustainably, investing in premium experiences, and attracting record numbers of visitors to Abu Dhabi. With new aircraft, new routes, and flourishing premium offerings, Etihad is setting new standards in aviation.”

The airline also welcomed over 1,700 new employees in the first half of 2025, including more than 100 pilots and 1,000 cabin crew. Internal promotions exceeded 1,100, reflecting strong career growth and industry-leading employee engagement.
Neves added, “I want to thank our employees for their outstanding contribution and our customers who continue to choose Etihad. We look forward to welcoming even more of you onboard in the months ahead.”

Key Highlights:

• Profit after tax: AED 1.1 billion (U.S.$306 million), +32% year-on-year
• EBITDA: AED 2.7 billion (U.S.$739 million), +24%, with 20% margin
• Total revenue: AED 13.5 billion (U.S.$3.7 billion), +16%
• Passenger numbers: 10.2 million, +17%
• Passenger load factor: 87%, +2 percentage points
• Available Seat Kilometres (ASK): +14%
• Operating fleet: 100+ aircraft, including 5 deliveries in July
• Network: nearly 90 destinations, 27 new routes launched or announced in 2025
• Customer satisfaction and First Class NPS at record levels
• Over 1,700 new hires and 1,100+ internal promotions

Etihad’s record half-year performance highlights its growing footprint, operational excellence, and unwavering customer focus as it continues to expand its global presence and elevate the travel experience from Abu Dhabi.

Dubai Duty Free has once again captured global attention by shattering sales records this August, reaching an impressive Dh646.23 million ($177 million). This marks a 15% increase over August 2024 and nearly a 10% rise from the previous peak recorded in 2018, underscoring the airport retailer’s growing allure among travelers.

On average, Dubai Duty Free welcomed around 275,000 passengers daily throughout August, generating an average daily sales figure of Dh20.8 million ($5.7 million). Managing Director Ramesh Cidambi praised the achievement, noting that sales growth has outpaced passenger numbers by approximately 9%, “a testament to the dedication of our team and the robust retail environment we have cultivated.”

A closer look at shopping habits reveals that confectionery stole the spotlight, with sales soaring by nearly 69%. Chocolates and sweets remain top picks for gifts and personal enjoyment. Gold jewelry followed with a strong 28.5% boost, while perfumes and tobacco products grew by 13% and 11% respectively. Other notable performers included Millennium Millionaire tickets, which climbed 34%, watches up 17.7%, precious jewelry with a 24% increase, cosmetics rising 9%, liquor up 3%, and electronics showing steady yet modest growth at 2.3%. Even without confectionery, the top ten categories collectively recorded a healthy 10.4% increase, illustrating broad-based demand across Dubai Duty Free’s diverse offerings.

Luxury shoppers found much to celebrate in Terminal 3, where fashion boutiques in Concourses A and B enjoyed a 10.86% rise in sales compared to last year. Cartier boutiques impressed with a striking 29.33% surge. The average daily boutique transactions climbed to 254, while customer spend rose to Dh8,004 from Dh7,748, signaling that premium shopping remains a favorite indulgence among UAE travellers.

All terminals experienced strong sales growth throughout the month. Concourses A and B both posted 17% increases, Concourse C followed with a 16.45% uplift, and Concourse D saw sales grow by 7.91%. Terminal 2 Departures reported a 13.6% gain, while Al Maktoum International Airport stood out with a remarkable 56.91% surge. Even arrivals shops maintained momentum, growing 11.72% despite intensified competition at Terminal 3 Arrivals.

Dubai Duty Free’s global appeal was evident, with travelers to the U.S. fueling a 27.94% uptick in spending. Other regions contributing to the growth included the Middle East (+19.78%), the Indian Subcontinent (+17%), Africa (+15.28%), Europe (+13.46%), Australasia (+9.49%), the Far East (+9.15%), and Russia (+3.26%).

Looking ahead, Dubai Duty Free shows no signs of slowing down. Luxury aficionados can anticipate the opening of a new Louis Vuitton boutique in Concourse A later this week, with Cartier slated to open another boutique by the end of September. By December, Concourse A will unveil the ‘Gifts from Dubai’ concept store, promising an even more immersive shopping experience for travelers and residents alike.

With year-to-date sales hitting Dh5.4 billion ($1.48 billion), a 6.93% increase compared to last year, Dubai Duty Free isn’t just setting new records — it’s redefining the airport shopping experience. For residents and visitors in the UAE, the airport transcends its role as a transit hub, emerging as a premier destination for luxury, indulgence, and everyday delights.