Singapore expects arrivals to increase, but spending to decrease
View from the rooftop pool of Marina Bay Sands resort hotel overlooking Singapore’s financial district skyline.
Anthony Wallace | Afp | Getty Images
Singapore, long seen as a pioneer of the global economy, expects tourism spending to soften this year despite forecasting a new surge in visitors; This reflects concerns that conflicts in the Middle East could put pressure on consumer and business spending.
The Singapore Tourism Board has predicted tourism revenues will be between 31 billion and 32.5 billion Singapore dollars ($24 billion to $25.6 billion) in 2026, compared to a record 32.8 billion Singapore dollars last year. International arrivals are forecast to rise from 16.9 million in 2025 to between 17 million and 18 million this year.
The city-state is a regional hub for business travel and airline stopovers and has hosted major events including the Formula 1 Singapore Grand Prix and concerts by megastars Taylor Swift, Coldplay and Blackpink. Tourism calculated 6% of Singapore’s services exports in 2024, according to the Singapore Tourism Board.
Speaking at the country’s annual industry conference, Melissa Ow, chief executive of the Singapore Tourism Board, said that although visitor numbers rose 3 per cent in the first quarter compared to the previous year, tourism spending was expected to soften due to “muted demand in the coming months”.
The warning from Singapore tourism authorities reflects broader concerns in the business travel industry. The Global Business Travel Association said geopolitical tensions and high fuel costs were creating instability in international travel markets, although Asia remained relatively resilient.
According to the Global Business Travel Association, Asia Pacific accounts for more than 40% of global business travel spending.
Suzanne Neufang, CEO of the Global Business Travel Association, told CNBC’s Monica Pitrelli that business travel globally has yet to fully recover to pre-pandemic levels, even if travel costs remain high.
While geopolitical or economic “shakes” are inevitable, Singapore’s tourism strategy still has “a decade and a half” left, Ow said.
Singapore’s “Tourism 2040″ strategy It aims to increase tourism revenues to between 47 and 50 billion Singapore dollars by 2040.
A record 70 million passengers will pass through Singapore Changi Airport in 2025.
Plans for an uncertain future
“Uncertainty is no friend of the travel industry,” Neufang told CNBC. But he added that meetings and conferences remain among the travel industry’s most resilient segments.
South Korean boy band BTS’ planned four-night Singapore stop in December is also expected to support tourism demand. Ow said the Singapore calendar remained “very resilient” despite flight disruptions due to tensions in the Middle East.
Singapore also announced a three-year partnership with South Korean drama production company Mr Romance. The first collaboration, “Buy King”, is being shot in Singapore and stars South Korean actors Ju Ji-hoon and Lee Jun-ho.
Singapore Minister for Trade Affairs Grace Fu said at the event that the government will transfer a new fund of S$740 million to the Tourism Development Fund over the next five years, on top of the S$300 million announced in 2024.
another one 5 million Singapore dollars It will be set aside under a separate fund to help tourism businesses expand into new markets and reduce the financial risks of expansion, Fu said.
Singapore is also looking to attract more cruise tourists as disruptions to Middle Eastern airspace and volatile jet fuel prices put pressure on air travel.
Disney Adventure, the largest ship in Disney’s cruise fleet and the company’s first ship outside the United States, began operating from Singapore on March 3.
Singapore is also set to open a new cruise and ferry terminal on July 15. The site will feature a VIP lounge and automatic baggage handling system as the country plans to expand its cruise industry, which has recorded 375 ship calls and more than 2 million passengers by 2025.
Still, Ow said Singapore remains focused on its long-term tourism goals.
“Current times are extremely uncertain and very fluid,” he said. “We are choosing to be more conservative in terms of how we expect the year to play out.”
— CNBC’s Monica Pitrelli contributed to this report.
