Tourist arrivals and tourism receipts in Singapore are likely to fall shot of target for 2008 due to fall in tourist inflow in September 2008 and global economic slowdown.
The Singapore Tourism Board said the tourism industry will fall short of targeted number of travelers and tourism receipts this year as arrivals in September 2008 declined to two year’s low, as reported by forbes.
Tourist arrivals in September 2008 declined 4.9% to 739,000 visitors from the same month previous year. The number of tourists declined for the fourth month in a row. Singapore had set a target of attracting 10.8 Million visitors and generating S$15.5 ($10.4 Billion) this year. Analysts estimated that the tourism sector constitutes nearly 6% of $163 Billion Singapore’s economy.
The current global financial crisis, worst since the 1930s, has affected the real economy as dampening consumer sentiments brought down the profits of tourism sector. Despite organizing the Formula One race, the tourist arrivals in the country during September 2008 declined on YOY basis.
Moreover, discretionary spending and sentiments of consumers were seriously affected by the current global economic crisis. Consequently, tourist arrivals and tourism receipts for 2008 are anticipated to fall short of the target. The revenue generated by hotel rooms surged but the average occupancy rate slipped down.
Tourists from Australia, Japan, China, Indonesia and India represent over half of the total tourist arrivals in Singapore, but the economic slowdown in these countries forced their people to put their Singapore visit plans on hold.
Further, the impact of credit crisis in the US and cost cutting measures taken by the companies has fallen on the business and leisure travel in Singapore. Singapore Airlines Ltd., city state’s carrier, recorded low seat occupancy in September 2008 after expanding the capacity faster than demand, and passenger traffic dropped the first time in over three years. The decline is reflecting the tough global economic environment and gloomy outlook for the tourism industry that may extend to next year also.
According to a Research Analyst at RNCOS, “The Singapore tourism industry will miss its target for 2008 due to a decline in tourist arrivals in September 2008. Also, the tourism receipts will decline as travelers are canceling their trips, but the industry will continue its efforts to raise spending during the year end festive period.”
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