The controversial Rainwave Water Music Festival generated an estimated RM320.43 million in economic returns and delivered a significant boost to tourism-related businesses, according to the Tourism, Arts and Culture Ministry.
Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing told the Dewan Rakyat that the event, organised under the Visit Malaysia 2026 (VM2026) campaign, attracted around 415,000 visitors across six states and produced substantial spillover benefits for local businesses, retailers and tourism operators.
Tiong said the festival was organised through a collaboration between Tourism Malaysia and private sector partners as part of the government’s event-based tourism strategy aimed at increasing visitor arrivals, encouraging tourist spending and stimulating economic activity.
According to him, the Bukit Bintang edition of the festival alone attracted approximately 150,000 domestic visitors, including attendees from Sabah and Sarawak, as well as 100,000 international tourists from countries such as China, Japan, Bangladesh, India, South Korea, Thailand, Singapore, Indonesia and Vietnam.
“The estimated economic return generated from the festival was RM320.43 million, while the overall programme conducted across six states contributed RM392.33 million to the national economy,” he said during Minister’s Question Time.
Besides Kuala Lumpur, the festival was also held in Terengganu, Melaka, Labuan, Negeri Sembilan, Johor and Langkawi.
The total cost of organising the event was RM15 million, with RM11 million funded by the government and the remaining RM4 million contributed by private sector partners.
Tiong said the figures demonstrated a strong return on investment, with every RM1 spent by the government generating an estimated RM36 in economic returns.
He added that although organisers could have generated up to RM75 million in ticket sales by charging RM300 per person, the government chose to keep admission free as part of Labour Day celebrations and efforts to promote Visit Malaysia 2026.
The minister also highlighted the positive impact on businesses in Bukit Bintang, one of the festival’s key venues.
Based on feedback from the BBKLCC Tourism Association, Lot 10 shopping centre recorded a 40 per cent increase in foot traffic and a 25 per cent rise in sales during the festival period, while Sungei Wang Plaza reported a 31.3 per cent increase in visitor numbers.
A total of 63 food stalls and 15 handicraft stalls participated in the event, generating additional income opportunities for local entrepreneurs.
Tiong revealed that one food vendor from Kelantan earned RM4,800 on the first day of the festival, RM6,200 on the second day and RM10,000 on the third day.
The festival also generated extensive international exposure, with 41 foreign media representatives covering the programme.
According to the ministry, nearly 10,000 media reports and digital content pieces were produced, generating an estimated publicity value of RM77.5 million and reaching approximately 1.9 billion social media impressions worldwide.
Responding to questions from Members of Parliament, Tiong said the ministry is expected to announce the full calendar of major events under the Visit Malaysia 2026 campaign within the next month or six weeks following final programme adjustments.
Addressing concerns raised over the appropriateness of the festival and requests for a detailed expenditure breakdown, Tiong stressed that the event was open to all visitors regardless of race or religion.
He added that a detailed breakdown covering marketing expenses, artist fees and logistics costs would be provided through a written parliamentary reply after further information is obtained from Tourism Malaysia.
Despite attracting criticism from some quarters, the government maintains that the festival achieved its objective of driving tourism, supporting local businesses and strengthening Malaysia’s visibility as a destination ahead of Visit Malaysia 2026.
