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Given the success of the two integrated resorts (IRs) in attracting visitors, the Singapore government has continued to push for projects aimed at keeping the tourism momentum going.
Among the projects targeted at exciting visitors include the Jurong Lake District, the Mandai eco-tourism hub and the $9 billion further commitments by the IRs, reported The Business Times.
Future projects such as the Greater Southern Waterfront development, the JB-Singapore RTS link to Johor Bahru and Changi Terminal 5 are also expected to “drive visitation to Singapore over the next decade and beyond”.
The hugely-successful opening of Jewel Changi Airport – which drew over 50 million visitors since its opening in April and largely exceeded the initial target – proved that blockbuster projects are still possible. The project is expected to “further drive Singapore’s appeal as a tourist and transit destination”, according to UOB economist Barnabas Gan.
“If done well, these attractions could play a significant role in increasing the average length of stay in Singapore – something that has not increased since the opening of the two integrated resorts,” said Govinda Singh, executive director of valuation and advisory services at Colliers International.
Maybank Kim Eng economists Lee Ju Ye and Chua Hak Bin noted that while replicating the success of the IRs may be hard, their expansion is expected to help sustain tourist interest.
And despite the growing competition from resort and casino offerings in nearby markets like Macau, Vietnam, the Philippines and soon Japan, the industry’s biggest challenge is global slowdown.
Mr Gan noted that global and external events historically had a significant effect on tourist receipt, which dropped 18.3% year-on-year and 13.3% during the global financial crisis and the Asian financial crisis, respectively.
With receipts declining for three consecutive quarters as of Q2, a continued decline may “prolong the softness of Singapore’s tourism industry”.
Moreover, there is the upcoming blow from the tighter foreign labour quotas within the services sector.
Nonetheless, analysts remain optimistic for next year as they expect the city-state to witness a continued diversion of business and leisure travellers from Hong Kong.
“As mainland Chinese tourists move away from Hong Kong and Taiwan to other destinations, the latter is likely to receive a boost in revenues higher than what the arrivals data suggest,” said ANZ economists Krystal Tan and Sanjay Mathur in a November report.
ANZ revealed that the per capita spend of mainland China visitors to Singapore is higher by 2.5 times compared to that of average visitors.
Singh also expects major MICE (meetings, incentives, conferences, exhibitions) events like the biennial Singapore Airshow, Gamescom Asia and Food and Hotel Asia to mitigate the downside risks for 2020.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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