Singapore tourism industry receipts declined 0.2% in H1 2008 due to spiraling inflation, rising accommodation prices, high traveling cost and rise in the local currency.
According to an official at Singapore Tourism Board (STB), the tourism receipts in Singapore during the first half of 2008 dropped 0.2% in comparison to the same period previous year, as reported by e-Travel Blackboard.
The board also revealed that the tourist arrivals in Singapore during January-June 2008 reached 5.1 Million, up 2.9% against the same period in 2007. But the tourist spending in H1 2008 recorded a slow growth at $4.72 Billion against H1 2007. The hotel occupancy rate also fell down by 3.4% in January-June 2008 while the revenue flared up by 22% compared to the corresponding period last year. The top five tourists generating individual markets in H1 2008 included – Indonesia with 855,000, China with 591,000, India with 414,000, Australia and Malaysia with 399,000 and 310,000 respectively.
The fall in tourist arrivals in Singapore during the first half of 2008 was largely accredited to the slow economic growth in the country. Besides, rising inflation and increasing prices of food and fuels severely hampered the tourism industry and impacted the consumer sentiments and discretionary outlays of tourists coming to Singapore.
The hotel charges and traveling expenses have gone up considerably, restraining visitors from coming to Singapore. The hotel charges in the first half of 2008 surged to a record level that made accommodation very expensive for visitors. Also, the rise in value of Singapore’s currency against dollar has made traveling to Singapore costlier.
The slow growth in Singapore’s tourism sector might continue in the future, as the business conditions showing no signs of improvement and the country’s economy will remain weak. Under current scenario, the government is planning to aggressively promote the tourism industry in key markets such as India and China.
According to a Research Analyst at RNCOS, “Singapore tourism industry has seen fall in tourist arrivals in recent months owing to slow economic growth, rising traveling expenses and appreciation in the local currency. Being a major source of foreign currency, the slowdown in tourism industry has negatively affected the country’s economy. With this, the hotel industry and travel agencies that heavily depend on tourism are also facing tough time.”
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