Malaysia's tourism rebound has been impressive, with 26.6 million international arrivals last year and strong domestic travel. But for Eric Levy, managing director of Tourism Solutions International (TSI), the real measure of success is not how many visitors come through Kuala Lumpur International Airport or Penang's ferry terminal—it's whether those visitors leave with a consistently excellent experience that makes them want to return and spend more.
Levy, who previously served as senior vice president of growth and development for Pan Pacific Hotels Group, brings a sharp eye to the country's hospitality landscape. He is one of the judges for the TDM Travel Trade Excellence Awards 2026 – Malaysia, and he sees clear opportunities for the industry to evolve.
Beyond arrival numbers: a value-driven strategy
“Malaysia is in a strong position: it has a compelling combination of cultural depth, excellent food, natural assets, good value, well-established urban gateways, and a hospitality sector capable of serving both regional and long-haul visitors,” Levy said. “The opportunity now is to move beyond measuring success principally by arrivals and towards greater visitor value, longer stays, stronger local economic participation, and consistently high-quality experiences at all tiers of tourism.”
That means looking at yield per visitor, length of stay, and how much spending actually stays in local communities. It also means connecting Malaysia's diverse destinations—Kuala Lumpur, Penang, Melaka, Langkawi, Sabah, and Sarawak—into a coherent story that appeals to leisure, business-events, wellness, family, culinary, nature, and luxury travellers. “The next stage is to connect these assets more coherently through better destination storytelling, seamless mobility, and stronger service consistency,” Levy added.
People, costs, and consistency: the operational trifecta
Levy is blunt about the biggest operational challenge: people. Hotels, attractions, and tour operators across the region are competing for skilled staff while managing rising guest expectations around service, digital capability, language skills, sustainability, and career progression. “Retention will depend not only on wages but also on training, leadership quality, workplace culture, and credible pathways for young people to build long-term careers in hospitality,” he said.
Cost pressures are also squeezing margins. Energy, food, insurance, maintenance, technology, and financing costs are all rising, even as guests expect personalised, frictionless, and sustainably operated experiences. Levy advises operators to use technology where it genuinely improves the guest journey and productivity—while protecting the human warmth that defines great hospitality. “Operators need sharper commercial discipline,” he said.
Another issue is uneven standards across the visitor journey. “A memorable hotel alone is not enough if airport arrivals, transport, public-realm maintenance, attraction interpretation or last-mile connectivity fall short,” Levy noted. “Tourism is a whole-destination product, so its quality depends on coordinated execution by public agencies, owners, operators, communities and service providers.”
Authenticity as a growth asset
Levy rejects the idea that growth and authenticity are in conflict. “Local culture, heritage, landscape and community life are precisely what make a destination distinctive; if they are diluted, tourism erodes the asset on which it depends,” he said. He urges stakeholders to involve local communities early in planning, especially where development affects access, livelihoods, heritage precincts, or sensitive natural environments. Communities should see tangible benefits through local employment, supplier opportunities, training, and conservation funding—not just be consulted after decisions are made.
He also warns against importing generic concepts that could be anywhere. “The strongest hotels, tours, restaurants, and attractions interpret the place with respect: working with local artisans and producers, presenting history accurately, protecting cultural protocols, and giving visitors meaningful context rather than a superficial performance of 'local flavour,'” Levy said.
Investing in talent, infrastructure, and destination management
To sustain long-term growth, Levy says Malaysia needs sustained investment in three areas: talent, infrastructure, and destination management. Talent development must go beyond technical skills to include anticipation, problem-solving, cultural fluency, and emotional intelligence. Infrastructure means more than new hotels or airports—it includes reliable domestic and regional connectivity, accessible public spaces, clean and safe visitor facilities, multilingual wayfinding, digital access, and thoughtful planning for peak periods. “A destination becomes more competitive when moving through it is simple, welcoming, and predictable,” he said.
Levy's perspective aligns with broader industry trends. As destinations like Bangkok reshape urban mobility for visitors and experience-led travel grows through platforms like Klook, the focus is shifting from volume to value. For Malaysia, the path forward is clear: invest in people, connect the dots, and deliver a consistently excellent experience at every touchpoint.
