Airbnb

Airbnb’s impact in Malaysia — and particularly in Johor Bahru — has been transformative

Airbnb has become an increasingly significant player in Malaysia’s hospitality scene, reshaping the way both domestic and international travellers experience the country.  Its appeal lies in the variety and flexibility of accommodations available — ranging from city-centre apartments to suburban homes — often at competitive rates compared to traditional hotels.  For many guests, the draw is not just the price but the chance to enjoy a more local and personalised experience.

In Johor Bahru, the growth of Airbnb has been especially notable.  As the city positions itself as a gateway for Singaporean and domestic visitors and a rising domestic tourism hub, Airbnb listings have multiplied, offering everything from budget-friendly studios to luxury waterfront condos.  Many hosts in JB cater specifically to short cross-border stays, family trips, and weekend getaways, capitalising on the city’s strategic location and evolving attractions.  This has given travellers more choices beyond hotels while creating income opportunities for property owners.

The presence of Airbnb has also had a spillover effect on Johor Bahru’s local economy. Guests tend to spend in neighbourhood eateries, malls, and attractions rather than being tied to a hotel’s in-house services.  This distribution of tourist spending supports small businesses and can stimulate the growth of emerging districts.  However, it also introduces challenges — such as the need for clear regulations, fair tax contributions and measures to manage community concerns about security, noise, and housing affordability.

Hotels, meanwhile, continue to recover from the pandemic downturn, with occupancy levels rising steadily.  They still hold strong advantages in brand recognition, service consistency, and facilities.  Yet, the competition from Airbnb has prompted many hotels to adapt, offering more flexible packages, competitive pricing and curated local experiences to stay relevant.

Overall, Airbnb’s impact in Malaysia — and particularly in Johor Bahru — has been transformative.  It has expanded the accommodation landscape, injected fresh energy into local tourism, and provided economic benefits that extend beyond the hospitality sector.  As its presence grows, the key will be to balance innovation and opportunity with thoughtful regulation, ensuring that both short-term rental operators and traditional hotels can thrive in a fair and sustainable tourism ecosystem.

Tan Wee Tiam

Executive Director

Olive Tree Property Consultants