Singapore Sees Tourism Recovery Thanks to China, Indonesia, Malaysia Visitors
Singapore’s tourism sector is on the path to recovery, with visitor arrivals increasing by 115 percent to 13.6 million in 2023, reaching about 71 percent of pre-pandemic levels. The surge in visitors is attributed to strong demand from key markets, including Indonesia, China, and Malaysia. In particular, China’s implementation of a 30-day visa-free travel arrangement with Singapore is expected to further drive the recovery in 2024.
Last year, Singapore witnessed a remarkable rise in visitors, from 6.3 million in 2022 to 13.6 million in 2023, meeting the forecast of the Singapore Tourism Board (STB). While this figure represents around 71 percent of the 2019 levels, it is nonetheless a significant milestone considering the halt in international travel caused by the Covid-19 pandemic.
Among the top markets, Indonesia stood out with 2.3 million visitors, followed by China with 1.4 million, and Malaysia with 1.1 million. Notably, Singapore’s tourism receipts are also expected to surpass expectations, reaching S$24.5 billion to S$26 billion in 2023, marking approximately 88 to 94 percent of 2019 levels. The final figures for tourism receipts will be available in the second quarter of 2024.
According to the Singapore Tourism Board, tourism receipts from China, Indonesia, and Australia were particularly notable for the first nine months of 2023, with contributions of S$2.3 billion, S$2.2 billion, and S$1.5 billion, respectively. It is worth mentioning that sightseeing, entertainment, and gaming expenditures were excluded from the analysis due to commercial sensitivities.
In terms of visitor behavior, Singapore experienced an increase in the average length of stay, which rose from 3.4 days in 2019 to approximately 3.8 days in 2023.
Looking ahead to 2024, the recovery of Singapore’s tourism sector is expected to gain momentum, driven by improved global flight connectivity, increased flight capacity, and the implementation of a 30-day visa-free travel arrangement between China and Singapore. Additionally, the Singapore Tourism Board aims to focus on achieving quality tourism, fostering strategic partnerships, and investing in new and enhanced products and experiences to sustain growth.
Singapore has also made strides in the Meetings, Incentives, Conventions, and Exhibitions (MICE) sector, securing significant business events such as the World Congress of Dermatology 2023, the Million Dollar Round Table (MDRT) Global Conference 2023, and the International Trademark Association (INTA) 2023 Annual Meeting Live+.
The hotel industry in Singapore has shown strong performance, with average room rates and revenue per available room exceeding 2019 levels. The average room rate reached S$282, around 128 percent of the previous rate, while revenue per available room reached S$226, approximately 118 percent of the figure in 2019. However, the average occupancy rate was slightly lower, at 80.1 percent in 2023 compared to 86.9 percent in the same period in 2019, reflecting the ongoing impact of the pandemic.
Singapore has also experienced positive developments in its cruise sector, with a record 2 million passenger throughput and over 340 ship calls at the Marina Bay Cruise Centre Singapore. Additionally, the partnership between the Singapore Tourism Board and Disney Cruise Line will make Singapore the exclusive home port for a new Disney Cruise Line vessel for at least five years starting in 2025.
Overall, Singapore’s tourism sector has showcased resilience and demonstrated a strong recovery in 2023. With the anticipation of increased flight capacity and enhanced global connectivity in 2024, Singapore is poised to attract approximately 15 to 16 million international visitors, contributing to tourism receipts ranging from S$26.0 billion to S$27.5 billion. However, the pace of recovery will also depend on factors such as geopolitical uncertainties and the global economic situation. The Singapore Tourism Board remains committed to driving sustainable growth in the tourism industry through various strategies and partnerships, ensuring Singapore maintains its position as a leading global travel destination.
