Singapore's tourism marks strong recovery in 2023, with momentum likely to continue into 2024

SINGAPORE — Singapore's tourism is experiencing a strong recovery after the years when the COVID-19 pandemic had restricted travel, with tourism receipts in 2023 surpassing the city-state's forecast.

Singapore Tourism Board (STB) said in a media release on Thursday (1 February) that the surge in tourism is primarily driven by key markets such as Indonesia, China, and Malaysia, which emerged as the top three contributors in 2023 with 2.3 million, 1.4 million, and 1.1 million visitors respectively. Additionally, Australia, South Korea, and the United States also played significant roles in contributing to this recovery.

STB added that the strong tourism recovery is expected to continue this year, with both international visitor arrivals and tourism receipts to climb further in 2024. Projections for 2024 international visitor arrivals range from 15 million to 16 million, with anticipated contributions of approximately $26 billion to $27.5 billion in tourism receipts throughout the year.

This builds on what was achieved in 2023, a year in which Singapore attracted 13.6 million visitors, meeting STB’s forecast of between 12 million and 14 million visitors. During this period, tourism receipts were estimated to range between $24.5 billion and $26 billion, surpassing STB’s forecast of $18 billion to $21 billion.

China travellers lead in tourist spending with $2.3 billion, with Indonesia closely behind with $2.2 billion, and Australia in third place with $1.5 billion in expenditures. The increased spending reflects the positive trend observed in 2023, coupled with a lengthier average stay of 3.8 days, up from 3.4 days in 2019.

Singapore's Tourism Board anticipates continued recovery and enhanced connectivity

STB said in the media release that the expected continuing recovery of the tourism sector will be driven by improved global flight connectivity, and upcoming initiatives such as the mutual 30-day visa-free travel arrangement between China and Singapore, which is set to commence on 9 February.

Despite the resurgence, post-pandemic arrivals from China remain below pre-pandemic levels. From January to November 2023, Singapore received only 37 per cent of over 3.5 million Chinese tourists who visited Singapore in 2019.

Looking ahead, STB said it expects international flight capacity to grow in 2024 back to pre-pandemic levels, particularly for the majority of the Singapore's key markets.

Meanwhile, Changi Airport has also seen a substantial rebound in passenger traffic, reaching 86 per cent of pre-COVID-19 levels. In 2023, the airport recorded a total of 58.9 million passengers, with the top five markets driving this traffic being Indonesia, Malaysia, Australia, Thailand, and India.

STB chief executive Melissa Ow said that the robust performance in 2023 indicates a promising recovery for Singapore's tourism, aligning with the increasing demand for international travel.

"Our strategy to attract a healthy and diverse visitor portfolio, comprising long and short haul markets, has significantly contributed to our overall visitor arrivals, longer length of stay and growth in tourism receipts," she said.

A glimpse into 2023 triumphs and 2024 anticipations

In 2023, new attractions helped to breathlife into Singapore's tourism landscape, with the world’s first surf-snow-skate action sports facility, Trifecta, opening its doors in October at the heart of Orchard Road. Another major addition, Bird Paradise, commenced operations in May.

The hotel industry also had a strong showing, adding 3,210 rooms across new openings, including Pan Pacific Orchard, Mondrian Singapore Duxton, Artyzen Singapore, and The Singapore Edition.

The average room rate and revenue per available room for 2023 also surpassed figures from 2019. Despite this positive trend, the average occupancy rate in 2023 stood at 80.1 per cent, still below the pre-pandemic high of 86.9 per cent in 2019.

The Meetings, Incentives, Conventions, and Exhibitions sector continued to be a key growth driver in 2023, with Singapore securing several significant business events for the first time. These included Silmo Singapore, an eyewear and optics conference, the inaugural Asian edition of Bar Convent Singapore, and the 25th World Congress of Dermatology.

In 2024, the event pipeline remains robust, featuring the full-scale return of the Singapore Airshow in February, major conferences like the World Congress of Anaesthesiologists in March, and the World Architecture Festival in November.

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