Tourist arrivals in Singapore slumped 9.7% in November 2008, corresponding to the global economic recession, which cut down the travel expenditure of the people.
According to the Singapore Tourism Board (STB), tourist arrivals in Singapore came down to 760,000 after declining 9.7% in November 2008 on YOY basis, as reported by TopNews.
Since June 2008, the number of tourist arrivals was declining. The top five countries posting highest number of tourists to Singapore in November 2008 were Indonesia, the People’s Republic of China, Australia, Malaysia and India. These five nations together accounted for about 49% of total tourist arrivals to Singapore. Also, there was a fall of 45% in the number of visitors from South Korea.
In November 2008, gazetted hotels of Singapore were anticipated to produce total room revenue of SG$ 161 Million (US$ 106.77 Billion), indicating a decline of 6% over November 2007. On the other hand, there was a decline of around 8% in the average hotel occupancy rate that slipped to 80%.
According to estimation, nearly 9,172,000 visitors visited Singapore during the 11-month period from January to November 2008.
The major reason that triggered the decline in tourist arrivals in Singapore is the global economic crisis. Due to unfavorable economic conditions, tourists are becoming increasingly price-conscious, which, in turn, is containing the travel expenses of people. This is a clear indication of weak consumer confidence.
Tourist arrivals are expected to remain below its target of 10.8 Million in 2008 while tourism revenues are likely to fall short of targeted SG$ 15.5 Billion. However, the Tourism Board has revealed that it has been making attempts to raise visitors’ expenditure. Also, Singapore’s retail outlets have increased their promotional campaigns and other marketing practices, particularly abroad, as tourists account for a major share of their customer base.
Additionally, companies are expected to ponder over the long-term investments in capabilities and upgrading the levels of their service, products and facilities. This will help them to gain from the growth opportunities that will emerge once the economic crisis comes to an end.
According to a Research Analyst at RNCOS, “Tourism-related businesses, like travel agencies and retail sector, should keep a close watch on the emerging trends in the tourism industry and be aware of the preferences of visitors. They should also offer visitors value-for-money services to induce positive growth into the tourism sector.”
Related Market Research Reports:
Opportunities in Singapore Tourism Industry (2007-2009)
Egypt Tourism Sector Analysis
Indian Tourism Industry Analysis
