SINGAPORE EXCEEDS ITS TARGET TOURISM RECEIPTS

According to preliminary estimates, Singapore’s tourism industry will show strong results in 2023, with both international tourist arrivals and tourism receipts increasing in line with the growing global travel and tourism sector.

International tourist arrivals are estimated at 13.6 million, or about 71% of 2019. This figure is in line with the Singapore Tourism Board’s (STB) forecast of between 12 and 14 million tourists.

Tourism receipts are expected to reach S$24.5 billion (US$18.3 billion) to S$26.0 billion, higher than STB’s 2023 forecast range of S$18 billion to S$21 billion. This initial figure is approximately 88% to 94%. Tourism Receipts Seen in 2019

Singapore Tourism Board Chief Executive Melissa Oo has expressed satisfaction with the strong performance of the tourism industry in 2023. This performance is a promising sign of tourism recovery, especially with increased flight capacity and increased international travel demand.

Oo highlighted that Singapore’s growing pipeline of business and leisure offerings reflects the country’s continued appeal as an attractive and reliable tourism destination. Strong demand from Singapore’s various key markets boosted tourist arrivals, with 2.3 million in Indonesia, 1.4 million in China, and 1.1 million in Malaysia. Other key markets that posted a buoyant recovery include Australia, South Korea and the US.

Singapore has seen a promising increase in tourism receipts from January to September 2023, as they have either surpassed pre-pandemic levels or almost recovered (in the same period in 2019). During the first nine months of 2023, China, Indonesia, and Australia emerged as the top spending markets, accounting for S$2.3 billion, S$2.2 billion, and S$1.5 billion, respectively, in tourism receipts (excluding tourism and Entertainment, excluding entertainment and gaming).

Moreover, visitors are spending more time in Singapore than before the pandemic. In 2023, the average length of stay was recorded at 3.8 days, up from 3.4 days for the same period in 2019.

The hotel industry has shown a remarkable performance with ARR (Average Room Rate) and RevPAR (Revenue per Available Room) surpassing 2019 levels. ARR has reached S$282, about 128% of 2019 ARR, while RevPAR has reached S$226, about 118% of 2019 RevPAR. However, the AOR (Average Occupancy Rate) was recorded at 80.1% in 2023, which is lower than the 86.9% recorded in the same period in 2019.

Since the opening of Marina Bay Cruise Center Singapore in 2023, Singapore’s position as a regional hub for cruises has been strengthened, with more than 340 cruise calls recording two million passenger arrivals. Driving growth in 2024 with recovery, global flight connectivity and capacity improvements and implementation of reciprocal 30-day visa-free travel between China and Singapore. In 2024, international flight capacity continues to increase and is expected to reach or reach pre-pandemic levels for most of Singapore’s key source markets.

International tourist arrivals are expected to reach between 15 and 16 million in 2024, resulting in approximately S$26 billion to S$27.5 billion in tourism receipts. However, the pace of travel recovery may be affected by various factors, such as geopolitical uncertainty, the state of the global economy, and continued recovery of flight connectivity.