Travel And Tourism Development Index 2026 Ranks Japan First As Malaysia Climbs To 26th Globally

Aiman Maulana
4 Min Read

The Travel and Tourism Development Index 2026, released by the World Economic Forum in collaboration with Zurich Insurance Group, ranks 110 economies on how well their infrastructure, policies and systems support sustainable tourism growth. Japan leads the rankings, while Malaysia has climbed to 26th globally, registering one of the strongest improvements in the index.

The report says international travel hits a record 1.5 billion trips in 2025, contributing USD 11.6 trillion to the global economy; and unlike conventional tourism rankings, this one evaluates how ready each economy is to generate lasting value from tourism, covering 17 pillars across five dimensions: enabling environment, tourism policy, infrastructure and services, tourism resources, and sustainability.

Travel And Tourism Development Index 2026: Key Takeaways

Travel And Tourism Development Index 2026 Ranks Japan First As Malaysia Climbs To 26th Globally
Travel And Tourism Development Index 2026 Ranks Japan First As Malaysia Climbs To 26th Globally

As aforementioned, Japan tops the chart, ahead of the United States and Spain; advanced economies hold nine of the top 10 positions, with China being the sole exception. Europe remains the highest-performing region overall, claiming six of the top 10 spots. Japan’s lead is attributed not only to its well-known cultural and infrastructure strengths, but also to deliberate efforts to reduce barriers for international visitors and distribute tourist demand beyond its most congested cities and peak travel seasons.

Progress has been broad-based: 92% of economies improved their scores between 2024 and 2026, with average scores rising 2.1%, the fastest rate of improvement since 2019. The sharpest gains, however, are concentrated among emerging destinations. Albania improved the most since 2024, lifting its score by 7.0%, followed by Viet Nam at 6.3% and Laos at 6.1%. Asia-Pacific accounts for seven of the 10 most-improved economies, with South-East Asia advancing faster than any other subregion.

Malaysia’s rise to 26th place globally reflects, according to Zurich Malaysia Country CEO Junior Cho, real progress in building the foundations that sustain tourism over time. He noted that Zurich plays a direct role in protecting travelers when disruption strikes, with its travel proposition now backed by Travel Guard.

The report argues that resilience has become a key differentiator for destinations. Geopolitical tensions, climate stress, economic volatility and digital outages are disrupting travel more frequently. Aviation disruption linked to the conflict in Iran, along with heatwaves and wildfires across Europe and North America, illustrate how quickly destination systems come under pressure.

Tourism now represents close to a tenth of the global economy, supporting 366 million jobs, or one in every nine worldwide. However, the growth is creating strain: tourism prices rose faster than inflation across many economies, with 75% of economies becoming less affordable for travelers. Investment has not kept pace with demand since 2022, and that gap is expected to persist into the 2030s.

The workforce outlook is a particular concern, as the sector is projected to face a shortfall of 43 million workers by 2035, roughly 16% fewer people than it needs. The report identifies workforce capacity as one of the most significant constraints on tourism growth, with shortages directly affecting service quality.

The report outlines five priorities for governments, destination authorities and businesses: spreading demand more widely across source markets, traveler types and seasons; keeping transport, information and digital systems operational during disruption; competing on service quality and long-term value rather than price; communicating the economic benefits of tourism to local communities; and investing in workforce skills, retention and productivity.

Pokdepinion: Maybe this is VM2026 showing its results. Either way, good showing.

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