Tourist numbers hit hard by inflation, high costs and visa requirements: Industry players
Tour agencies told CNA that they are seeing mixed demand, but remain hopeful that efforts by the Singapore Tourism Board (STB) will encourage more tourist footfall in 2024.
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SINGAPORE: Some travel agencies and attractions in Singapore are seeing worse than expected tourist numbers this year, particularly from the top three groups – China, India and Indonesia.
Many are blaming higher inflation and the stronger Singapore dollar, along with new strategies employed by neighbouring countries to attract tourists.
Tour agencies told CNA that they are seeing mixed demand.
However, they are hopeful that efforts by the Singapore Tourism Board (STB) will encourage more tourist footfall in 2024.
SOME TOURISTS CHOOSE TO VISIT NEIGHBOURING COUNTRIES INSTEAD
Industry watchers are also looking forward to more easing of visa requirements.
On Thursday (Dec 7), Singapore and China said that they will establish a 30-day mutual visa exemption agreement between both countries. The proposal was announced during the 19th Joint Council for Bilateral Cooperation (JCBC) meeting in Tianjin.
Currently, Chinese citizens require a visa to enter Singapore.
Some travel agencies were hoping for numbers to return to pre-COVID-19 levels much earlier, especially for the Chinese, who formed the biggest proportion of tourists.
Yet, the higher costs and a strong Singapore dollar compared to the region have led many tourists to spend less time in the country or look elsewhere, said observers.
Oriental Travel and Tours managing director Stanley Foo said “I think business generally has been good, definitely much better than last year. I think we saw an increase of about 20 to 30 per cent compared to last year.”
However, the agency has seen a switch in the types of tourists coming to Singapore.
Before the pandemic, the largest groups of tourists were from China, India and Indonesia, but these tourists are now choosing to travel to neighbouring countries instead, noted Mr Foo.
“What happened is that hotel prices have increased, the costs of their tours have increased, and these tourists coming from China and India are actually changing their destination from Singapore to our neighbouring countries. Most recently, we have also seen our neighbouring countries coming up with new strategies to attract them to their countries,” he said.
He believes Singapore is now less attractive to these travellers because of the accommodation prices, adding that Chinese tourists “can spend three nights in our neighbouring country instead of one night in Singapore”.
His agency has since pivoted to focus on other groups such as the American and the European markets.
“During this period, we are lucky that we are focusing on the right market,” said Mr Foo.
“Because I think the demographic of tourists coming to Singapore has changed. So some tourists from certain countries are not really coming back to Singapore anymore.”
EXPENSIVE TO VISIT SINGAPORE, BUT WORTH THE PRICE
For some tourists, however, checking Singapore off their travel list is worth the price.
One American tourist interviewed agreed that the country has a rich and diverse culture, but “the only thing that puts me off from coming to Singapore is the costs associated with it” and that it is a “very expensive place” to visit.
Local attractions such as Gardens by the Bay told CNA that ticket sales are still about 80 per cent of pre-COVID-19 levels.
However, the attraction is hoping that having new exhibits will help draw more people.
“We showcase plants in an immersive way. We are constantly exploring how we can bring in new experience to our business,” said Gardens by the Bay senior director of business development Ong Kian Ann.
“We are looking to do this by experimenting with different mediums and technologies.”
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Even cashing in on local residents is proving to be difficult this year, as many of them have decided to go overseas instead, said observers.
The Singapore Discovery Centre, for instance, said it does not expect figures to be more than past years, but it is still coming up with various school holiday programmes to entice families to visit.
Meanwhile, the Singapore Flyer, one of the largest observation wheels in the world, has introduced a holiday bundle just for Singaporeans and permanent residents till Jan 1. The attraction said tourism recovery will rely heavily on the return of Chinese tourists next year.
