The Singapore Tourism Board expects the rate of tourism spending to outpace the growth in visitor arrivals. - Photo: ST
SINGAPORE: Tourism spending in Singapore is projected to reach between S$47 billion and S$50 billion by 2040 – around 1.7 times more than 2024’s figures, Minister-in-charge of Trade Relations Grace Fu said on Friday (April 11).
In 2024, the country recorded an all-time high of $29.8 billion in tourism receipts, driven largely by visitors from top spending markets such as China, Indonesia and Australia.
International visitor arrivals hit 16.5 million, underscoring a strong post-pandemic rebound.
Looking ahead, the rate of tourism spending is expected to outpace the growth in visitor arrivals, as Singapore shifts its focus from volume to value, said Singapore Tourism Board (STB) chief executive Melissa Ow.
This vision is encapsulated in the STB’s Tourism 2040 road map, which revolves around three key pillars: cultivating future demand, enhancing Singapore’s appeal as a destination, and developing a future-ready tourism sector.
One of the key growth engines lies in the Mice (meetings, incentives, conventions and exhibitions) segment, which Fu identified as a “high-growth and quality visitor segment”.
Fu and Ow were speaking at the Tourism Industry Conference on April 11.
The annual event, which was held at Suntec Singapore Convention and Exhibition Centre, is for STB and the tourism and travel trade industry to take stock of tourism trends and market insights.
STB aims to triple Mice tourism receipts by 2040.
Mice travellers tend to spend twice as much as leisure travellers, said Fu, and with the global Mice sector projected to double in value over the next decade, Asia-Pacific is emerging as one of its fastest-growing markets.
STB is also studying the development of a new Mice Hub in Singapore’s downtown district. The new facility is expected to complement and bolster the Mice offerings in the area, and will leverage existing Mice venues and attractions in the city with the aim of enriching the visitor experience.
In parallel, efforts to rejuvenate key tourism precincts such as Orchard Road and Sentosa are under way, with a focus on offering more diverse and immersive experiences.
For instance, Minion Land opened at Universal Studios Singapore on Feb 14, while the upcoming Singapore Oceanarium – which replaces the S.E.A. Aquarium – is set to open in the first half of 2025.
To amplify Singapore’s global appeal, STB has also launched partnerships with trendy brands such as toy collectibles giant Pop Mart and South Korean lifestyle label Wiggle Wiggle, with the aim of bringing fresh, pop culture-driven experiences to the city.
Despite the optimism, Ow remained cautious amid ongoing trade tensions.
She said: “This year, the global economic outlook appears more uncertain. For now, it is too early for us to determine the impact on travel and tourism, and we will monitor these developments very closely.”
Fu added: “Following the imposition of the United States tariffs, we expect a more challenging global environment. As countries revise their growth rates downwards, we expect consumer confidence to be adversely affected.
“Even as we look ahead to a pipeline of events that will invigorate our tourism landscape, we must brace ourselves for near- to medium-term volatility that will test our adaptability.”
STB projects tourism receipts to reach between $29 billion and $30.5 billion and international visitor arrivals to hit 17 million to 18.5 million in 2025.
Dr Ye Guangzhi, assistant professor of economics at NTU, believes the ongoing trade tensions could impact tourism.
“When economic growth slows, overall demand for tourism tends to decline. This is because tourism spending is generally considered ‘elastic’. It is more likely to be reduced or postponed compared with more ‘inelastic’ types of spending, such as on every day necessities,” he said.
“As a result, the tourism industry is particularly vulnerable to downturns in economic confidence and shifts in currency values, both of which can significantly influence travel decisions and destination preferences.”
For the year ahead, STB has a slew of new tourism products and experiences, partnerships as well as refurbishments planned.
New cruise offerings include Disney Cruise Line’s first Asia cruise – the Disney Adventure – and the introduction of Ritz-Carlton Yacht Collection’s Luminara for the luxury segment.
Marina Bay Cruise Centre Singapore will also undergo a $40 million investment to increase its terminal capacity from 7,000 to 12,000 passengers.
For Mice events, Singapore will host medtech conference LSI Asia 2025 – the first edition in Asia – and Herbalife Extravaganza 2026, with an anticipated 25,000 visitor arrivals.
Destination hotels – where hotels are the destination in and of itself due to unique factors such as experiences, attractions and architecture – have been identified as a trend.
An example is the Mandai Rainforest Resort by Banyan Tree, which opened in April.
Visitors can also look forward to more sports and music events, and lifestyle offerings with an increased focus on wellness.
Ow said that in 2024, tourism companies committed more than $3.2 billion in investments that went into new products and experiences, but added that “there is much to be done”.
“Work has already started, and we are putting in place the building blocks that will anchor our future as a world-class destination, as a global hub and a home that we proudly advocate for,” she said. - The Straits Times/ANN
