SINGAPORE — The second quarter of 2016 appears to have been a good one for the tourism sector despite a weak global economy, with tourist receipts up 20 per cent year-on-year to reach S$6.1 billion on the back of higher tourist spending in shopping, accommodation and food and beverage.
A total of 8.2 million visitors spent S$11.6 billion in the first half of 2016, with a 13 per cent year-on-year growth in tourist arrivals accounting for the 12 per cent spike in spending.
Data from the Singapore Tourism Board (STB) showed that Chinese and Indonesian shoppers led the charge, spending 43 per cent and 15 per cent more respectively between January and June this year, compared to the same period last year.
The STB said the increase in tourist spending on shopping, accommodation and food and beverage helped to offset a fall in expenditure in sightseeing, entertainment and gaming.
Tourist spend, however, still lags behind 2014’s level for the same period by 1.7 per cent. Last year, Singapore’s tourism receipts fell for the first time since the 2009 slump following the 2007 and 2008 global financial crisis.
Sharing key observations, the STB said the Republic is seeing “a shift in visitor profile” for some of its top source markets.
One trend is that more visitors from India, Australia and Indonesia are spending more on fashion accessories, wellness products, souvenirs, gifts and confectionary.
Another is that more visitors are choosing to stay in mid-tier hotels (primarily located in prime commercial zones or immediately outlying areas), while Singapore sees a drop in the number of long-stayers typically hosted by their friends and relatives.
These contributed to an estimated S$1.6 billion for gazetted hotel room revenue in the first half of this year, which works out to be a 3.2 per cent year-on-year growth. Average hotel room rates, however, continue to be under pressure, dropping 3.8 per cent year-on-year.
It remains to be seen how the industry will fare for the full year, as the STB had forecast in February that the tourism sector could see as little as zero growth this year, if the global economy remains weak and corporates continue to cut back on travel budgets. It estimated tourism receipts for the year coming in the range of S$22 billion to S$22.4 billion.
