Singapore is one of the most sought after tourist destination in the world owing to its diverse culture, traditions and warm hospitality. Tourism in Singapore is a major industry and contributor to the economy, attracting 11,638,663 tourists in 2010, over twice Singapore's total population. Tourism Receipts (TR) for 2011 came in at S$22.3 billion, registering an 18% year on year growth. Tourism Receipts (TR) for Quarter One (Q1) 2012 were estimated at S$5.8 billion, registering an 8% year-on-year growth.
Asia remained a strong visitor source market in 2011, contributing 76% of total International Visitor Arrivals (IVA). IVA for Q1 2012 stood at close to 3.6 million, representing a 15% year-on-year growth. Excluding Sightseeing & Entertainment expenditure, Indonesia (S$704 million), P R China (S$658 million), India (S$267 million), Australia (S$256 million) and Japan (S$232 million) were Singapore's top five TR generating markets for Q1 2012.
The hotel industry has also turned in a strong performance in 2011. Gazetted hotel room revenue for 2011 was estimated at S$2.6 billion, posting a 28% growth as compared to 2010. International operators continued to expand their footprint in Singapore but local players took the limelight with some 97% of new hotels that opened in 2011 being managed by local operators. Existing local groups also expanded their business through the launch of new brands. All this resulted in tremendous diversity and value in accommodation options.
Singapore travel stakeholders have great plans in shaping the country's tourism future, as the Singapore Tourism Board (STB) has plans to distribute its S$905 million (US$716 million) industry development war chest over the next five years. The hefty budget forms the second tranche of the Tourism Development Fund, which was established in 2005 with S$2 billion to support targets set for 2015. Two-thirds of the fund injection, or S$640 million, will be pumped into seeding new tourism ventures and projects, while the rest will be channeled towards supporting tourism-related education and skill-upgrading initiatives. Key segments earmarked by STB for advancement include cruise tourism, the arts and entertainment sector, and the cultivation of the travel consultant industry as a key enabler for overall tourism development.
The Singapore hotel market is also likely to witness healthy operating performance in coming years. As a major centre of commerce and finance for Asia and its world-class travel and tourism infrastructures, Singapore will continue to enjoy its fair share of travelers for business, MICE and leisure activities. Country's hotel industry is touted as the second best performer in the Asia-Pacific market. It is evident that Singapore's robust tourism industry is grabbing the attention of hoteliers and investors and offers a promising outlook for the hotel industry in the near future.
(Source: Insight Alpha)