SG tourism sector sees 'encouraging signs of recovery' despite year-on-year visitor dip

Singapore's international visitor arrivals and tourism receipts hit 330,000 and an estimated SG$1.9 billion respectively last year. The number of visitor arrivals saw an approximate 87% drop from the 2.7 million back in 2020. Meanwhile, Singapore recorded SG$4.8 billion in tourism receipts for 2020. According to Singapore Tourism Board (STB), the country's tourism sector recorded overall year-on-year declines in international visitor arrivals and tourism receipts, largely due to the effect of strong tourism performance in the first two months of 2020.

While these numbers represent only a fraction of Singapore’s tourism performance prior to the pandemic, STB said there have been encouraging signs of recovery in the tourism sector, with year-on-year growth in the last three quarters of 2021. The introduction of various travel arrangements, such as VTLs, has encouraged the gradual return of international travellers. Domestic consumption has also been strong, as the tourism sector pivoted to develop new and innovative experiences for locals, STB said.

International visitor arrivals increased 221% in the last three quarters of 2021, compared to the same period in 2020. Tourism receipts for the second and third quarter of last year were 92% higher than the same period in 2020. Out of the 330,000 international visitors which arrived last year, 88,000 were from China while 54,000 and 33,000 were from India and Indonesia respectively. These represented the top three visitor source markets in 2021.

At the same time, visitors from China, Indonesia, and India contributed SG$432 million, SG$127 million, and SG$58 million in tourism receipts (excluding sight seeing, entertainment, and gaming) between January and September 2021 respectively.

Meanwhile, about 1.9 million Singaporeans have used their SingapoRediscover Vouchers at least once, making about 2.6 million transactions. Close to SG$300 million in SingapoRediscover Vouchers transactions were recorded, comprising close to SG$180 million in vouchers and about SG$120 million in out-of-pocket payments from the bookings. The cruise industry also rebounded strongly following the start of cruises to nowhere in late 2020, STB said. Since then, Singapore's cruise industry saw over 400,000 domestic passengers set sail on close to 300 cruise sailings.

Keith Tan, STB's chief executive, said: “While it will take time for tourism numbers to return to pre-pandemic levels, we are encouraged by the resilience of our tourism businesses, and their commitment to preserve good jobs, transform their businesses, and invest in new products and experiences. These efforts will strengthen Singapore’s appeal as we prepare to welcome more international visitors."

He added that STB must anticipate setbacks and challenges even as the tourism industry recovers slowly. However, he is confident that the tourism industry has learnt from its experiences, and is poised to recapture demand when it returns.t

Moving forward, STB plans to ramp up efforts in its key source markets and deepen engagement with tourism partners to capture growth and inspire travel to Singapore. For example, the tourism board will work with Singapore Airlines and the Changi Airport Group on the "Welcome back to Singapore" campaign to instil travel confidence among international travellers.

The campaign has been launched in Germany and India after vaccinated travel lanes (VTL) were established with these two markets. It will be progressively launched in more markets including Australia, the UK, the US and South Korea.

STB will also double down on in-market partnerships in 2022, such as with Airbnb Experiences, Studio Dragon, and for the SingapoReimagine ULTRAMAN video series. In retail, STB will continue to collaborate with Made with Passion Singapore brands, as well as brands in key markets such as India.

Last year, STB stepped up efforts globally to strength Singapore's mindshare among international travellers. These included livestreaming taxi tours on Twitch: Singapore by Stream for Americans; leveraging Ultraman’s brand power in Japan; and taking Indian family audiences on a virtual adventure in Singapore with animated series Chhota Bheem. On the domestic front, STB also hoped to excite locals by partnering with ClassPass to encourage locals to participate in wellness and fitness activities through the platform.

The collaboration with ClassPass is part of STB's five-year roadmap which identified key strategies and initiatives to develop Singapore's wellness offering. STB plans to launch an inaugural wellness festival in June this year to promote and increase the accessibility of Singapore's wellness offerings.

Meanwhile, STB -- together with NTUC, hospitality and consumer business cluster unions, Workforce Singapore, and e2i, as well as the support of key trade associations -- will launch the Tourism Careers Hub this year to offer training and skills upgrading for tourism workers and businesses. There are also plans to provide support for individuals interested in pursuing tourism careers.

The hub will focus on three areas: job matching within the tourism sector; developing industry-specific capabilities to prepare the tourism workforce for recovery; and encouraging technology transformation and business innovation to seize new growth opportunities. More details about the hub will be announced soon.

Separately, on the marketing and advertising front, STB appointed BBH and Zenith to manage global creative and media duties respectively, following a pitch called last October which was managed by Ebiquity. The appointment is for an initial two years and three months with effect from 21 January 2022, with options for the contract to be renewed thereafter on an annual basis for three years.

BBH and Zenith, together with Digitas (digital, data and development partner) and Prodigious (creative production partner), participated in the RFP as a consortium known as The Shophouse. Throughout the process, STB said they stood out for their strong strategic thinking, creative ideas and agile application of insights in their strategy development and execution plans. In addition, they have put together a team with the right experience, tools, and a well-considered network management process to support STB in Singapore and across our international offices.

Last year, STB also witnessed a shuffle in its marketing team. Chang Chee Pey replaced Lynette Pang as assistant chief executive, marketing group while Pang moved on to National Arts Council as deputy chief.

Photo courtesy: 123RF

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