Nearly RM400mil economic returns from water music festival, says Tiong

KUALA LUMPUR: The three-day Rain Rave Water Music Festival generated an estimated RM392.23 million in economic returns, tourism, arts and culture minister Tiong King Sing said today.

He told the Dewan Rakyat that the event in Kuala Lumpur generated RM320.43 million in economic impact, while simultaneous programmes held in six other states – Terengganu, Melaka, Labuan, Negeri Sembilan, Johor, and Langkawi – generated an additional RM71.9 million.

Altogether, the festival series which ran from April 30 to May 2 recorded about 415,000 visitors and produced a total estimated economic return of RM392.33 million based on data from Tourism Malaysia and the statistics department.

“The festival (in Kuala Lumpur) attracted about 150,000 domestic visitors, including those from Sabah and Sarawak, as well as 100,000 foreign tourists from China, Japan, Bangladesh, India, South Korea, Thailand, Singapore, Indonesia, Vietnam, and other countries, generating an estimated RM320.43 million in economic returns.

“At the same time, events held in six states attracted about 165,000 visitors and generated an estimated RM71.9 million in economic returns,” he said.

He told the Dewan Rakyat the figure reflects the success of Malaysia’s event-based tourism strategy under the Visit Malaysia 2026 (VM2026) campaign, which positions major festivals as key drivers to boost tourist arrivals, spending, and the broader economy.

Tiong said the programme’s total cost stood at RM15 million – RM11 million contributed by the government and RM4 million from the private sector. He said the event generated about RM36 in economic returns for every RM1 spent by the government.

While entry to the festival was kept free, he said ticket-based models could have generated substantial revenue. At RM300 per ticket, the event could have raised about RM75 million, while a RM200 ticket price could still have generated RM50 million, he said.

However, Tiong said the government opted for free entry as a gesture of appreciation to the public in conjunction with Labour Day and to encourage wider participation.

The minister said strong private sector involvement helped amplify the event’s impact, with support from major shopping malls such as Pavilion Kuala Lumpur, Lot 10, Fahrenheit88, Sungei Wang Plaza, and BBKLCC, as well as hotel partners, transport providers, tourism operators, and international brands.

He said retail performance during the festival period improved significantly, with Lot 10 recording a 40% increase in visitors and a 45% rise in sales. Sungei Wang Plaza saw visitor growth of 31.3% alongside higher sales while Pavilion Kuala Lumpur’s food and beverage segment recorded an 11% increase in sales.

A total of 63 food stalls and 15 craft stalls were set up in Bukit Bintang, while participating states recorded direct sales of RM388,690.

Tiong said the festival also generated strong international exposure, with 41 foreign media representatives covering the event, nearly 10,000 media reports and digital content pieces, and an estimated RM77.5 million in publicity value. Social media engagement reached 25.1 million interactions, with 25.3 million live view engagements.

He added that some 80 hotels nationwide offered discounts of 30% to 50% during the festival period, with many reporting near full occupancy.

The minister said the programme successfully balanced international entertainment with Malaysian cultural identity through traditional music, cultural fashion shows, heritage food, and local performances.

Tiong was responding to a question from Young Syefura Othman (PH-Bentong) on the festival and its contribution to Malaysia’s tourism sector.