KUALA LUMPUR, July 10 — Malaysia’s vacation rentals market is booming as demand from both international and domestic users surged, real estate consultancy IQI said in its latest rental index report, projecting 2024 revenue to fetch RM5.3 billion or more than double of 2020 level.

Revenue is expected to soar even further to RM6.9 billion in four years’ time, the firm projected, as more tourists look to platforms like Airbnb because they offer more personalised or more flexible accommodation options than is offered by traditional hotels.

"Vacation rentals can offer more privacy, space, and a home environment. The rise in online platforms makes it just as easy for travellers to search, find, and book vacation rentals as hotel rooms,” it said.

Malaysia’s 2024 vacation rentals revenue is about three times the revenue the same sector will generate in Vietnam this year, according to forecasts.

The Malaysian vacation rental market is expected to grow at a compound annual growth rate of 7 per cent between 2024 and 2028, IQI projected.

"Tourist arrivals are rapidly returning to their pre-pandemic levels. There were 20 million arrivals in 2023, versus 26 million in 2019 and 10 million in 2022,” it said.

"Arrivals hit their low point in 2021, at just 130,000.”