Number of people employed in the accommodation industry in Malaysia 2012-2021

According to data from the UNWTO, Malaysia employed more than 196 thousand people in the accommodation industry as of 2021. Due to the restrictions during the COVID-19 pandemic, the number of people employed in this industry has been decreasing since 2020, after reaching the highest number of employees in 2019 at more than 233 thousand people.

How has the accommodation industry suffered?

The travel restrictions imposed by the government of Malaysia to curb the spread of the COVID-19 virus caused a significant decrease in the number of tourists coming into the country. As a result, the accommodation industry suffered greatly because of the lack of visitors. The number of hotels in Malaysia decreased by 169 from 2020 to 2021. The Malaysian Hotel Association (MAH) reported that thousands of people were left unemployed, with hotel workers worst affected by the pandemic.

Labor shortages might continue

More than one year after Malaysia reopened its borders in April 2022, the accommodation industry is slowly recovering from the debilitating effects of the travel restrictions. As a result, there will likely be a recovery in demand for manpower within the industry. Nevertheless, the average salary of employees in the accommodation and service industry is still below the national average. The MAH reiterated that labor shortages will likely persist unless current issues are addressed.