S'pore expects slower visitor growth in 2012

The Singapore Tourism Board (STB) has forecast a slower growth of visitor arrivals in 2012 after a record number last year.

STB chief executive Aw Kah Peng said growth will moderate this year because of uncertainty in the global economy.The board said tourist arrivals in 2011 reached a record 13.2 million, a rise of 13 percent from the previous year, surpassing an official forecast of between 12 and 13 million.

Mr Aw said: "For the first three, maybe even up to six months of the year, the bookings are fairly strong - meaning they have been sustained. Beyond that, it's harder to see. We do know that people are in general more cautious, they are still looking for growth. I do think we have the ability to grow but the uncertainties are there." 

Analysts have forecast a 6 percent growth to 14 million tourist arrivals in 2012. Tourism receipts were at a record S$22.2 billion for 2011, although this was at the low end of the STB's forecast range of S$22 billion to S$24 billion. 

Leong Wai Ho, Senior Regional Economist, Barclays Capital, said: "I think that should moderate as well. We have an increasing number of budget travellers, judging by the number of budget flights from Singapore that has gone up sharply.

We are investing heavily on tourism infrastructure, we are also referring to improved cruise connectivity - a wider spectrum of hotels, a wider spectrum of entertainment options that not just attract more tourists, but also induce them to spend more." 

Some 76 percent of visitor arrivals came from Asia.The highest number of visitors came from Indonesia at 2,592,000.It was followed by China (1,577,000), Malaysia (1,141,000), Australia (956,000) and India (869,000).

The biggest growth sector for Singapore in terms of dollars spent was sightseeing and entertainment, which includes visits to the country's two integrated resorts. The sector generated S$5.5 billion in receipts, 37 percent more than in 2010.

Hotel revenue in 2011 rose 28 percent to S$2.6 billion.Revenue per available room jumped to the highest in at least 10 years, even with some 2,400 rooms added in 2011. STB said 97 percent of new rooms were managed by local operators. 

Source - channelnewsasia