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SINGAPORE’S tourism receipts grew 5.9 per cent year on year (yoy) in the second quarter to S$6.8 billion, as international visitor arrivals jumped 14.8 per cent to 3.9 million, Singapore Tourism Board (STB) figures showed on Monday (Oct 21).
But this was a 15.6 per cent slide in visitor spending from the first quarter of 2024.
The April to June data brings tourism receipts for the first six months of 2024 to S$14.9 billion, up 19.6 per cent from the year-ago period. This was alongside a 30.1 per cent increase in visitor arrivals to 8.2 million for the first half of the year.
“Singapore’s tourism sector has shown remarkable recovery,” said an STB spokesperson. “Our latest international visitor arrivals forecast for 2024 is 15 to 16.5 million, and 2024 tourism receipts are expected to be between S$27.5 billion and S$29 billion.”
DBS analyst Geraldine Wong said that, overall, tourist arrivals look on track to exceed STB’s arrivals forecast, helped by the Chinese traffic recovery.
Most components up on year
For the second quarter, the improved year-on-year performance was on the back of increases in spending on shopping; accommodation; sightseeing, entertainment, and gaming (SEG); and other components.
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Only food and beverage (F&B) spending was lower in Q2 2024, slipping 4.3 per cent compared to the same three-month period in 2023.
Hotel room revenue came in at S$1.2 billion for April to June, reflecting a 7.8 per cent increase yoy. Average occupancy rate slipped slightly to 78.6 per cent, and revenue per available room dipped 0.9 per cent to S$213.02. But the average room rate edged up 1 per cent to S$271.01.
On a quarterly basis, the decline in receipts was due to lower spending in all areas tracked by STB. The SEG component recorded the largest fall on a quarterly basis, at 28.1 per cent. In contrast takings for this component were supported by several high-profile concerts hosted in the Republic in Q1.
China drives receipts
Yoy, the second-quarter takings marked a slight geographical shift from Q2 2023, where Indonesia had topped the list of contributors, surpassing China.
But for Q2 2024, the top market for tourism receipts was China, which contributed S$965 million, followed by Indonesia and Australia, which brought in S$665.3 million and S$454.6 million, respectively. This excludes expenditure on sightseeing, entertainment, and gaming.
While China (660,426 visitors) and Indonesia (633,159 visitors) were also the top two markets for tourist arrival numbers during the quarter, only 264,383 tourists came from Australia, in fifth place. Both India and Malaysia were sources of more visitors than Australia in Q2 2024.
“In the first half of 2024, China has firmly re-established herself as the top source tourist market for Singapore, with Chinese tourism receipts (excluding SEG) seeing a robust recovery of 83 per cent yoy,” said Wong Xian Yang, head of research for Singapore and South-east Asia at Cushman & Wakefield.
This bodes well for Singapore’s retail and hospitality sectors, he added, noting that a large proportion (73 per cent, excluding SEG for 2024 year-to-date) of Chinese tourism receipts are spent on shopping, accommodation and F&B. In contrast, 59 per cent of takings from tourists from Indonesia (excluding SEG) were spent on these areas.
DBS’ Wong also highlighted that Chinese consumers “are diverting their budgets towards experience-related expenditures such as F&B, which has risen by four times from pre-pandemic times on a spend-per-day basis”.
They continue to be very selective in shopping, she added, noting that “Chinese down trading continues to be a theme consistent across key data points, including the most recent Golden Week holiday data”.
Said the STB spokesperson: “Our robust line-up of world-class events and iconic attractions – such as notable concerts by A-list acts like Taylor Swift, Coldplay and Ed Sheeran, as well as new and refreshed offerings like Bird Paradise in Mandai, and Sensoryscape in Sentosa – help to maintain Singapore’s international appeal and reinforces our position as a compelling destination.
“Looking ahead, with the current pick-up in summer travel, we continue to remain optimistic about tourism performance.”
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