singapore tourism outlook 2022

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Singapore’s tourism sector recovers strongly in 2022, visitor numbers expected to double in 2023

International arrivals exceed forecast to hit 6.3 million, tourism receipts reach an estimated $14 billion amid growing demand.

SINGAPORE – Singapore’s international visitor arrivals (IVA) reached 6.3 million in 2022 (~33 per cent of 2019 IVA), exceeding STB’s forecast of between 4 and 6 million visitors. Tourism receipts (TR) are estimated to reach $13.8 to $14.3 billion (~50 per cent to 52 per cent of 2019 TR). Barring unexpected circumstances, tourism activity is now expected to recover to pre-pandemic levels by 2024.

Mr Keith Tan , Chief Executive, Singapore Tourism Board (STB), said: “Our 2022 tourism performance underscores Singapore’s appeal as a leading business and leisure destination for post-pandemic travellers. To sustain our growth in 2023 and beyond, we will expand our partnerships, build up a rich year-round calendar of events, ramp up investment in new and refreshed products and experiences, and continue to support industry efforts to build the capabilities they need to meet consumer demands.”

2022 Tourism Performance

Visitor arrivals were driven by strong demand from Singapore’s key source markets, led by Indonesia (1.1 million), India (686,000) and Malaysia (591,000).

TR reached $8.96 billion between January to September 2022. The top TR generating markets were Indonesia, India and Australia, which contributed $1.1 billion, $704 million, and $633 million respectively in TR (excluding Sightseeing, Entertainment and Gaming).

Visitors are also spending more time in Singapore compared to before the pandemic. For the last three quarters of the year (April-December 2022) when Singapore no longer required quarantine for fully-vaccinated travellers, the average length of stay was approximately 4.81 days. This is a significant increase compared to 3.36 days for the same period in 2019.

Key Industry Performance

MICE and Leisure Events The resumption of MICE events picked up pace in 2022, following the easing of border restrictions and safe management measures. Marquee international events returned to Singapore, including Food and Hotel Asia – Food & Beverage and Food and Hotel Asia – HoReC a, which took place as two dedicated trade shows for the first time, ITB Asia, and Singapore Fintech Festival , which attracted a record turnout from over 115 countries. STB also secured new events like FIND: Design Fair Asia as well as Global Health Security Conference 2022 and the 14th World Stroke Congress , which reinforced Singapore’s leadership in key industry clusters.

Singapore’s calendar of leisure and sporting events also recovered strongly. The Formula 1 Singapore Airlines Singapore Grand Prix 2022 – held after a two-year hiatus – drew a record attendance of 302,000; the Tour de France Prudential Singapore Criterium also made its Southeast Asian debut. Regular crowd-pleasers such as the Singapore Food Festival , Christmas Wonderland , Christmas on A Great Street at Orchard Road , the Marina Bay Singapore Countdown and ZoukOut Singapore were all organised successfully and drew visitors from around the world.

Hotels Industry Performance Singapore’s hotel industry also posted an encouraging year due to stronger demand for leisure and business travel. From April to December 2022, the Average Occupancy Rate (AOR) was 79.1 per cent, compared to 87.3 per cent recorded in the same period in 2019. Average room rates during this period increased by 17 per cent to $260, while Revenue per Available Room (RevPAR) increased by 6.2 per cent to $206.

Singapore welcomed a total of 465 new keys in 2022 with the opening of new hotels like the Citadines Connect City and Garden Pod @ Gardens By The Bay Centre. New brands like Hotel Telegraph ( formerly known as SO Singapore), Pullman Singapore Orchard (formerly known as Grand Park Orchard), voco Orchard Singapore (formerly known as Hilton Singapore at 581 Orchard Road) and Vibe Hotel Singapore Orchard (formerly known as Elizabeth Hotel) were also introduced. These investments underscored the private sector’s confidence in Singapore’s tourism prospects.

Cruise Industry Performance Singapore’s position as a regional cruise hub strengthened in 2022 with more than 230 ship calls. Passenger throughput was 1.2 million, which is about two-thirds of pre-pandemic levels in 2019. The return of cruising was supported by the year-round deployment of Resorts World Cruises ’ Genting Dream and Royal Caribbean International ’s Quantum/Spectrum of the Seas. Following the resumption of sailings with ports of call in July, two new cruise lines made Singapore their seasonal homeport:

• STB ’s new three-year partnership with Silversea Cruises will see its ships homeport seasonally in Singapore till the 2024/2025 season, with Silver Muse kicking off the first sailing from Singapore in December 2022.
• TUI Cruises ‘ Mein Schiff 5 also returned to Southeast Asia in December 2022, starting their three-year seasonal homeport from Singapore and taking passengers to ports in Southeast Asia.

Singapore also welcomed the return of transit and turnaround sailings from Cunard, Seabourn Cruises, Viking Cruises, Oceania Cruises and Regent Seven Seas Cruises in 2022.

2022 Highlights

Branded Collaborations and Strategic Partnerships To keep Singapore top-of-mind and rebuild demand, STB scaled up its SingapoReimagine campaign across 17 markets. It also increased Singapore’s appeal to consumers through innovative partnerships.

For example, STB collaborated with media and entertainment companies such as Warner Bros. Discovery and Studio Dragon, as well as celebrities Billie Eilish, Charlie Puth and Jackson Wang to inspire travel to Singapore through authentic and creative storytelling. STB also forged strategic partnerships with industry leaders such as Singapore Airlines, Scoot, CapitaLand, Expedia, Klook and Visa to promote Singapore, exchange insights and enhance the visitor experience.

Enhanced Destination Attractiveness Singapore welcomed new and enhanced experiences, including the Children’s Museum Singapore; Avatar: The Experience at Gardens by the Bay; Sentosa’s Night Luge, Scentopia, Wings of Time and Central Beach Bazaar ; a new gallery at ArtScience Museum’s Future World : “Exploring New Frontiers” ; A Minion’s Perspective Experience at Resorts World Sentosa; Mr Bucket Chocolaterie at Dempsey ; and the Singapore Night Safari ’s new amphitheatre and refreshed Creatures of the Night show. The Changi Bay Park Connector and the Rifle Range Nature Park were also opened, strengthening Singapore’s attractiveness as a City in Nature.

Singapore’s tour operators continued to introduce new and innovative tours, including the Seadog Kayak Sailing Tour by Kayak Fishing Fever, Letters From Blakang Mati by Woopa Travel as well as Hawker Fare: Little India Street Food Tour.

Becoming an Urban Wellness Haven and a Top Sustainable Destination To meet increasing demand for holistic wellness offerings, STB organised the inaugural Wellness Festival Singapore (WFS) in June 2022, which featured over 130 wellness activities and experiences over 10 days. STB also inked a partnership with global wellness platform ClassPass, onboarding more than 90 new wellness businesses across 167 locations.

To make wellness a key component of Singapore’s tourism offerings, STB launched an Expression-of-Interest (EOI) in November to develop a wellness attraction on the southern coast of Singapore.​

STB also made strides to help the tourism sector become more sustainable. A destination sustainability strategy for the tourism sector was developed in 2022 in line with the Singapore Green Plan 2030 and our ambition to become a sustainable urban destination. Industry-specific roadmaps were developed for hotels and the MICE ecosystem, while the Tourism Sustainability Programme was launched to support tourism businesses in all stages of their sustainability journey.

2023 Outlook

STB expects the tourism sector to continue its growth momentum this year, on the back of increasing flight connectivity and capacity, and China’s gradual reopening. International visitor arrivals are expected to reach around 12 to 14 million visitors, bringing in approximately $18 to 21 billion in tourism receipts – around two-thirds to three-quarters of the levels in 2019.

In the meantime, STB will continue efforts to increase Singapore’s destination attractiveness. STB will support the development of new and refreshed offerings in 2023, such as Bird Paradise @ Mandai Wildlife Reserve, and new experiences in Orchard Road such as the Trifecta integrated sports facility.

To support tourism recovery, STB will front load $110 million of the $500 million set aside for Singapore’s tourism recovery to ramp up business and leisure events over these two years.

STB will continue to attract more high-quality MICE events, such as the Herbalife APAC Extravaganza 2023 and the 25th World Congress of Dermatology 2023. On the leisure events front, 2023 has already kicked off strongly with Art SG, Southeast Asia’s largest ever art fair as part of the Singapore Art Week, and Sail GP, which made its Asian debut last week. New events like the Olympic Esports Week and Professional Triathletes Organisation Asian Open will also take place in Singapore for the first time.

To increase Singapore’s mindshare, STB will ramp up the SingapoReimagine campaign in all our key markets through creative activations, content and partnerships. This will be augmented by the SingapoReimagine Marketing Programme (SMP) to help local tourism and lifestyle businesses promote Singapore while also raising their marketing capabilities.

To support the pace of recovery, STB will continue to help the tourism sector ramp up hiring. As of September 2022, the total tourism workforce is around 65,000 – about 78 per cent of 2019 levels. STB will continue to support manpower needs through the Tourism Careers Hub, which has placed more than 500 workers in the tourism sector since its launch in 2022 by providing career coaching, skills upgrading and job matching. STB will also continue to support digital transformation for the industry through Tcube, which has already helped more than 1,000 local tourism companies through its various programmes.

Vicky Karantzavelou

Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.

• Vicky Karantzavelou https://www.traveldailynews.asia/author/vicky-karantzavelou/ SOTC Travel sees 21% YoY growth in Kolkata market demand
• Vicky Karantzavelou https://www.traveldailynews.asia/author/vicky-karantzavelou/ Korean Air launches daily Seoul Incheon-Macau service
• Vicky Karantzavelou https://www.traveldailynews.asia/author/vicky-karantzavelou/ Minor Hotels introduces NH Collection and NH Brands in Sri Lanka
• Vicky Karantzavelou https://www.traveldailynews.asia/author/vicky-karantzavelou/ oneworld says "Bula" to Fiji Airways as its 15th full member airline

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S’pore’s 2023 visitor arrivals to double to over 12m, full tourism recovery expected by 2024: STB

SINGAPORE – International visitor arrivals to Singapore are expected to hit 12 million to 14 million in 2023, with full tourism recovery expected by 2024.

Tourism receipts are also anticipated to climb to $18 billion to $21 billion.

The bullish forecast released on Tuesday by the Singapore Tourism Board (STB) comes on the back of better-than-expected numbers in 2022, which ended with 6.3 million international visitor arrivals and estimated tourism receipts of $14 billion.

Indonesia was the top market generating tourism receipts, contributing $1.1 billion in 2022. India came in second at $704 million, and Australia was third at $633 million.

The numbers are still a fraction of pre-Covid-19 tourism performance figures. In 2019, visitor arrivals hit a record of 19.1 million, while tourism receipts hit $27.7 billion.

However, the forecast is made based on several factors, such as no new Covid-19 variant of concern rearing its head, China’s continued reopening and international flight capacities continuing to be ramped up.

Tourism recovery in 2023 will be supplemented by a $110 million injection – part of the $500 million set aside by the Government to boost the industry – for ramping up business and leisure events over 2023 and 2024.

STB chief executive Keith Tan said potential dampening factors include a global economic slowdown and the introduction of border restrictions by other countries.

On the latter, he gave as an example India’s imposition of mandatory Covid-19 testing for travellers from six places, including Singapore. A negative pre-departure polymerase chain reaction test has been required for travellers from China, Hong Kong, Japan, South Korea, Singapore and Thailand since Jan 1.

“In fact, it has already had a small impact on travel demand from India to Singapore, so that worries me a little bit, if more countries want to have these border restrictions,” Mr Tan said.

Inflationary pressures, however, will have a relatively small impact on inbound tourism in 2023, especially for Singapore’s key markets, he added.

“In South-east Asia, which is one of our key markets, and in China as it opens, inflationary pressures have been relatively contained, and they are not as pronounced as in Europe or the US,” said Mr Tan.

“The consistent feedback from our partners overseas is that the types of travellers who come to Singapore are quite prepared to bear slightly higher costs (for travel).”

Experts such as Professor Lawrence Loh of the National University of Singapore Business School said that the bigger wild card is the global economic slowdown, which will affect people’s ability to travel.

“The leisure segment takes up a large part of tourism receipts historically... With a slowdown, personal and family travel will largely depend on the disposable income of those who want to consider Singapore as a destination,” said Prof Loh.

Dr Michael Chiam, a senior lecturer in tourism at Ngee Ann Polytechnic, noted that factors such as manpower constraints – which continue to plague many industries – may curtail recovery.

“The challenge would be the ability to cope with the sudden jump in tourist arrivals, given resource constraints such as manpower and capacity, which may potentially lead to a struggle in catching up with the sudden increase,” he said.

STB said it would continue to help the tourism sector ramp up hiring to support the pace of recovery. As at September 2022, about 65,000 people, or around 78 per cent of the figures in 2019, were employed in the industry here.

Despite these potential headwinds, Mr Tan said Singapore’s tourism performance in 2022 has underscored the Republic’s appeal as a leading business and leisure destination for post-pandemic travellers.

“To sustain our growth in 2023 and beyond, we will expand our partnerships, build up a rich year-round calendar of events, ramp up investment in new and refreshed products and experiences, and continue to support industry efforts to build the capabilities needed to meet consumer demands,” he said.

Meetings, incentives, conventions and exhibitions (Mice) and leisure events will also continue to be a driver of growth, said STB. 

The slate of events for 2023 kicked off with Art SG, South-east Asia’s largest art fair, as part of Singapore Art Week; and SailGP, which made its Asian debut last week.

New events such as the Olympic Esports Week and Professional Triathletes Organisation Asian Open will take place in Singapore for the first time in 2023.

Mice events such as the Herbalife Apac Extravaganza and the 25th World Congress of Dermatology are also scheduled to take place in Singapore in 2023.

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Travel & Tourism - Singapore

• Singapore's Travel & Tourism market is expected to prosper in the coming years.
• The revenue of this market is projected to reach US$3,826.00m by 2024.
• Moreover, it is expected to grow annually at a rate of 4.74% between 2024 and 2028.
• By 2028, the market's projected volume is estimated to be US$4,605.00m.
• The largest market in this market is the Package Holidays which are expected to generate US$1,823.00m in 2024.
• The number of users for Package Holidays is projected to reach 4.98m users by 2028.
• It is forecasted that user penetration will increase from 87.5% in 2024 to 99.4% by 2028.
• The average revenue per user (ARPU) is expected to be US$0.72k.
• By 2028, online sales will account for 81% of the total revenue generated in the Travel & Tourism market.
• Lastly, United States is expected to generate the most revenue in comparison to other countries, with US$199bn in 2024.
• Singapore's Travel & Tourism industry has experienced a rise in domestic tourism due to COVID-19 travel restrictions.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

out-of-scope

• Business trips
• Other forms of trips (e.g. excursions, etc.)

Travel & Tourism

• Vacation Rentals
• Package Holidays
• Analyst Opinion

Singapore's Travel & Tourism market is experiencing significant growth and development. Customer preferences: Travelers in Singapore are increasingly seeking unique and personalized experiences, moving away from traditional tourist attractions towards more authentic and off-the-beaten-path destinations. This shift in preferences is driven by a desire for cultural immersion and a deeper connection with the local community. Trends in the market: One notable trend in the Singaporean Travel & Tourism market is the rise of sustainable and eco-friendly travel options. With growing concerns about climate change and environmental impact, travelers are showing a preference for green accommodations, carbon-neutral transportation, and responsible tourism practices. This trend is in line with global efforts towards sustainability in the tourism industry. Local special circumstances: Singapore's strategic location in Southeast Asia makes it a hub for regional travel, attracting visitors from neighboring countries for short getaways and business trips. The city-state's efficient transportation infrastructure and world-class amenities contribute to its appeal as a travel destination. Additionally, Singapore's diverse culinary scene and vibrant cultural events offer unique experiences for tourists. Underlying macroeconomic factors: The strong economic growth and stable political environment in Singapore have contributed to the growth of the Travel & Tourism market. Rising disposable incomes and a growing middle class in the region have led to an increase in outbound travel from Singapore. Additionally, government initiatives to promote tourism and improve connectivity have further boosted the industry.

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• Sales Channels
• Travel Behavior
• User Demographics
• Global Comparison
• Key Market Indicators

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Singapore Tourism Industry

Singapore Tourism Industry Forecast by Domestic and International Tourists Through 2034

MICE Sector Expansion Boosts Singapore Tourism Revenue! Travel Agencies and Online Booking Platforms Seek to Enter Singapore Tourism Sector with Innovative Offers

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Analytical Study of Singapore Tourism Industry from 2024 to 2034

After the detailed analysis on global tourism market, FMI has recently published a new report on Singapore tourism industry . The outlook suggests tourism industry in Singapore to hit a mark of US$ 29,288 million in 2024.

The hotels and accommodation providers in Singapore have reacted by offering personalized packs, loyalty rewards programs, and integration with online bookings in their effort to get the tourists. While the momentum is sustained at a CAGR of 4.40% by 2034, the overall industry worth could eventually reach US$ 45,050 million.

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Investment Opportunities in the Singapore Tourism Industry

• Investment in hotels or platforms offering curated staycation experiences.
• Funding eco-friendly ventures like green hotels or responsible tourism tours.
• Back travel startups developing innovative booking systems or personalized travel apps.
• Invest in businesses catering to medical tourism, luxury travel, or specific interest tours.

Historical vs Future Outlook for Singapore’s Tourism Industry

The period from 2019 to 2023 was characterized by somewhat moderate growth of Singapore’s tourism industry. The market value amounted to US$ 28,188.60 million, and the CAGR was 3.8%.

This moderate pace can be attributed to a decrease in global tourism industry , other destinations becoming more popular, and the organization’s inability to attract tourists for the second time successfully.

The future predictions for 2034 seem more positive, as the CAGR is pegged to be at 4.4%. This period is likely to secure significant demand with developing niche markets. Also, advances in digital tools for optimizing the experience of tourists, increased attention to Eco practices could lead the market valuation to US$ 45,050 million by 2034.

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Key Highlights

Role of the Singapore Tourism Board (STB)

Singapore Tourism Board (STB) works actively to promote the country via targeted campaigns and develop new tourism products and experiences. They specialize in unique industries such as deluxe tourism, medical tourism , and sustainable tourism to meet the needs of visitors of different types.

Travel agencies and tour operators are developing personal itineraries, adopting online booking and virtual tours through technology, and focusing on niche sectors such as culture and ecotourism.

The Singapore tourism industry is taking on this digital wave with open arms!

Online tourism booking sites, mobile applications, and contactless payment systems are making travel arrangements, booking, and in-destination experiences more convenient and effective. Technology is also being used by retail and F&B outlets through digital menus and online ordering, which are aimed at the same.

Theme parks, museums, and cultural attractions are never stagnant. They are always introducing something new. The goal is to create immersive and interactive experiences that are a perfect match for the digital generation.

Trends Influencing Singapore Tourism Industry Growth

Medical Tourism Central

First class health care facilities and highly specialized medical procedures make Singapore a leading destination for medical tourism. There are sophisticated hospitals, top ranked medical professionals and the name is familiar around the world in regard to healthcare services, which means that Singapore has become irresistible to those people who come from different parts of the world seeking the best treatment and operations.

MICE Tourism Boom

Singapore continues to be one of the leading MICE (Meetings, Incentives, Conferences and Exhibitions) destinations in Asia attracting business travelers and event organizers from all over the world.

The city-state boasts of first-rate conference centers with modern amenities as well as an investor-friendly environment making it a perfect venue for global conferences, corporate meetings, and exhibitions.

Culinary Tourism Transition

It is no longer about famous street food or hawker fare but rather food tourism based on new ways differing from old ones. The rise of food-related events, food festivals and culinary experiences that emphasize multicultural gastronomy as well as contemporary dining scene have been observed in Singapore presently.

Singapore’s gastronomic journey ranges from Michelin-starred restaurants to local neighborhood hidden gems that offer an experience of the taste buds of those tourists who want a gastronomic tour.

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Comparative View of the Adjacent Singapore Tourism Industry

The objective of this section is to present a comparison between the tourism industry of Singapore, the USA and Canada tourism industry and the Asia Pacific tourism industry. It indicates the forecasted CAGR of each sector from 2024 to 2034 and contains the main trends and opportunities for each sector.

Singapore Tourism industry:

USA and Canada Tourism Industry:

Asia Pacific Tourism Industry:

Category wise insights

The section offers an analysis of the dominant segments influencing the outlook for demand for tourism in Singapore.

Domestic Tourist Anticipated to Be Key Business Makers in the Industry

In 2024, the share of domestic tourism in the industry is expected to reach 52%. This surge can be attributed to several factors:

• The Singapore residents are now choosing to go for staycations and local getaways more frequently which is mainly because of attractive offers and special deals.
• While the growth of the country’s GDP leads to an upward trend in the population’s disposable income that assures more spending on recreational activities, including local trips.
• Living in Singapore nowadays means exploring diverse activities, and the local tourism industry is adapting to this trend by providing various tours and activities within the city.
• Domestic tourism campaigns like the Singapore Tourism Board's "Singapoliday" campaigns also support this segment thanks to government initiatives.

Online Booking Channel Records a Significant Push Forward with a Share of 59% in 2024

Online booking platforms are anticipated to get a substantial chunk of the industry, up to 59% in 2024.

• Digital platforms are created in such way to make it simple, quick, and available to the traveler to search, choose, and book his travel schedule including flights, hotels, and attractions.
• Online booking portals often give customers a chance to grab great deals and discounts, thus making the trip more affordable.
• The rise of mobile apps for travel booking is an indicator of the growing trend towards in trip booking and travel management.
• These online portals promote a greater variety of travel choices and allow travelers to adapt their routes according to their specific needs.

Competitive Analysis of the Singapore Tourism Industry

The Tourism Industry of Singapore is powered by the coexistence of the established players and the new innovative entrants. Knowing their way of doing business is important to companies that want to become players in this thriving segment.

Recent Developments in the Singapore Tourism Sector

• Chan Brothers Group has been successful in expanding its franchise outlets and opening new stores in Kuala Lumpur and Chengdu, as these cities are growing tourist centers.
• The tourism sector of Singapore has shown a steady recovery in 2023, as the STB reported that international visitor arrivals hit 13.6 million, and tourism receipts are expected to hit US$ 24.5 million to US$ 26 million. Billion.
• Marina Bay Sands received $750 million for the following phase of its makeover, that will concentrate on Tower 3, the hotel lobby, and Sands SkyPark.
• Klook has widened its joint initiative with the STB, putting in a combined sum of about S$2 million to attract inbound tourism to Singapore.

Established Players

• Singapore Tourism Board (STB)

This government organization is the driving force behind the transformation of Singapore into a world-class tourism destination. They use tailored marketing campaigns and create new tourism products, such as those that are luxury, medical, or sustainable, as well as work with industry partners. STB adopts data-driven marketing, demonstrates virtual reality experiences to attract tourism, and joins hands with influencers to engage new audiences.

• Marina Bay Sands

A famous integrated resort that provides the finest in leisure accommodation, entertainment, conventions, and shopping. Marina Bay Sands extends its services by adding new attractions such as the ArtScience Museum extension and celebrity chef restaurants. Moreover, they use digital tools to develop guest experiences based on individuals.

• Changi Airport Group

Managing Changi Airport, Singapore, which is consistently rated as one of the best in the world. Changi Airport is a combination of retail, entertainment, and leisure facilities, which include a butterfly garden, a movie theater, and a rooftop pool, among others. They also embed contactless technology for passengers to save time.

Emerging Players in the Industry

A leading and well-established online travel agency with a strong presence in Asia. Trip.com applies AI and big data to the personalization of travel recommendations and competitive pricing. They also pay much attention to mobile-oriented experiences and seek out their clients of a particular group of travelers, such as millennials.

A well-known travel online channel that provides tickets for tours, activities, and attractions. Klook has hand-picked the most unique and localized experiences, provides real-time booking options, and socializes marketing through social networks with the younger generation.

• Byond Travel

The startup from Singapore gives people the opportunity to have tailored and eco-friendly traveling adventures. Beyond Travel brings together travelers and local specialists to create bespoke itineraries tailored to distinct interests and a travel approach centered on responsible tourism.

Key Strategies to Scale for Businesses Looking to Enter Singapore’s Tourism Industry

Embrace Targeted Niche Tourism! The throwing of pebbles won't yield any results. Singapore has a wide appeal to people with different tastes. Extensive research may lead to the identification of a particular niche for which a business can be a shining example - medical tourism, luxury trips, sustainable traveling, or specializing in families with young kids.

Understanding the ideal customer and fitting the offering to their individual needs is one of the most important factors. There is no doubt that partnership with local businesses and experts will be an essential means to create memorable and authentic experiences that are always of real value.

Through the concentration on a narrow segment, the business stands a chance to become the leader at this level and to get a devoted customer base.

Collaboration is Key! The tourism industry's success in Singapore is dependent on networking. After the implementation of the "Singapoliday" marketing strategy developed by the STB, businesses can easily get more customers by simply taking advantage of the exposure which is provided by promotional opportunities.

Partnering with business entities such as hotels, tourist sites, and local businesses is a crucial point to consider. Work together to create combined itineraries and at the same time advertise products that will ensure that travelers are not only provided with a variety of experiences but also a sense of uniqueness.

Local experts and guides collaboration will ensure that presentations are authentic, appropriate, and enriching in enabling the tourists to gain insight of the Singaporean culture.

Key Players Offering Tourism Services in Singapore include

• Chan Brothers Travel Agency
• Dynasty Travel
• Singapore Airlines Holidays
• Travel Clique
• Eu Asia Holidays

Key Coverage in Singapore Tourism Industry Report

• Singapore Tourism Statistics
• Industry Analysis of Singapore Travel and Tourism
• Singapore Tourism Outlook 2024
• Hospitality Industry in Singapore
• Singapore Tourism Statistics by Country

Key Segments

By tourism type:.

• International

By Booking Channel:

• Phone Booking
• Online Booking
• In Person Booking

By Tour Type:

• Individual travel
• Professional Groups
• Group travels

Frequently Asked Questions

What is the industry size for tourism in singapore.

The tourism industry in Singapore is poised to reach US$ 29,288 million by 2024.

What is the Future Outlook of Tourism Adoption in Singapore?

The industry is anticipated to surpass a valuation of US$ 45,050 million by 2034.

What is the Anticipated Growth Rate of Tourism in Singapore?

The demand for tourism in Singapore is expected to increase at the rate of 4.40% CAGR from 2024 to 2034.

Which Tourist Type is the Major Player in the Singapore Tourism Industry?

The domestic segment has had a monopoly over this sector since the year 2024.

How Booking Channel Gets the Biggest Share of the Market in 2024?

The online booking segment is expected to lead the industry in 2024.

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Tourism receipts total S$13.8b-S$14.3b in 2022; higher forecasts for 2023: STB

SINGAPORE tourism receipts reached an estimated S$13.8 billion to S$14.3 billion in 2022, about half of the 2019 pre-pandemic level, based on preliminary figures, the Singapore Tourism Board (STB) said at their year-in-review on Tuesday (Jan 17). This was on the back of 6.3 million international visitor arrivals – above STB’s forecast of four to six million visitors, though only about a third of the 2019 figure.

December alone saw 931,337 international visitor arrivals, the highest since the onset of the pandemic, though it remains below December 2019’s 1.7 million visitors, STB data showed. There were 816,340 tourist arrivals in November 2022.

Barring unexpected circumstances, tourism activity is now expected to recover to pre-pandemic levels by 2024, earlier than the previously expected mid-2020s recovery.

The tourism growth momentum is expected to continue in 2023, on the back of increasing flight connectivity and capacity, as well as China’s reopening. An estimated 12 to 14 million visitors are anticipated to bring in about S$18 billion to S$21 billion in tourism receipts – around two-thirds to three-quarters of 2019 levels.

Asked about inflationary pressures, STB chief executive Keith Tan is “reasonably optimistic” that their impact will be “relatively small”, as travellers are prepared to bear the higher costs.

While he highlighted strong demand from China and regional markets, Tan said supply-side considerations remain. Juliana Kua, assistant chief executive, international group at STB, noted that there are about 38 weekly flights from China to Singapore as at January 2023, less than 10 per cent of pre-Covid levels. China also announced that outbound travel would be carefully calibrated, she added.

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But she said STB has been working on marketing in markets including China. Smaller group travel with customised itineraries and a preference for deeper – rather than “bucket list” – experiences are newer trends among Chinese tourists, she said.

Tan added that STB hopes to see traffic from China return to between 30 and 60 per cent of pre-Covid levels for the full year.

The tourism board also updated that as at September 2022, the total tourism workforce is around 65,000 – about 78 per cent of 2019 levels. Jeannie Lim, STB assistant chief executive, policy and planning group, noted that hiring efforts aim to fill about 3,000 job vacancies in the tourism sector over the next year or two.

In December last year, Indonesia, Malaysia and Australia topped Singapore’s list of visitor source markets. For the full year, the top three source markets were Indonesia (1.1 million), India (686,000) and Malaysia (591,000). China did not rank among the top 10.

In the first three quarters of 2022, Indonesia (S$1.1 billion), India (S$704 million) and Australia (S$633 million) were the top contributors to tourism receipts, which totalled S$8.96 billion for the nine months.

In the last nine months of 2022, when Singapore removed quarantine requirements for fully-vaccinated travellers, visitors’ average length of stay was approximately 4.81 days, up from 3.36 days for the same period in 2019. A smaller percentage of daytrippers, days for leisure tacked onto business travel and pent-up demand contributed to the increase in length of stay, STB said.

Meetings, incentive travel, conventions and exhibitions (Mice) also had a stronger 2022 as Covid-era restrictions eased. The year saw the return of marquee international events such as Food and Hotel Asia’s trade shows and the Singapore Fintech Festival, as well as new events, STB said.

Leisure events also made a comeback, with the Formula 1 race drawing a record 302,000 attendees, the Tour de France Prudential Singapore Criterium debuting in South-east Asia, and “regular crowd pleasers” such as the Singapore Food Festival and Christmas Wonderland welcoming visitors.

As demand for leisure and business travel strengthened in 2022, the hotel industry “posted an encouraging year”. From April to December, average room rates were up 17 per cent from the corresponding period in 2019 to S$260, and revenue per available room increased by 6.2 per cent to S$206.

The average occupancy rate for the nine months last year, however, was 79.1 per cent, compared to April to December 2019’s 87.3 per cent. Some 465 new rooms were opened for the full year.

In the cruise industry, passenger throughput was about two-thirds of pre-pandemic 2019 levels at 1.2 million. There were over 230 ship calls. The deployment of ships by Resorts World Cruises and Royal Caribbean International and two new cruise lines – Silversea Cruises and TUI Cruises – that made Singapore their seasonal homeport after the resumption of sailings with ports of call in July supported cruising’s return.

To rebuild tourism demand and boost Singapore’s attractiveness in 2022, STB collaborated with brands, partnered with “industry leaders” such as airlines and travel booking platforms, and added new and improved attractions and tours, it said. It also focused on sustainability and enhanced urban wellness offerings.

This year, STB plans to further support the development of experiences and attractions such as Bird Paradise @ Mandai Wildlife Reserve. It will also secure more Mice and leisure events using S$110 million over the next two years, from the S$500 million set aside for tourism recovery in April 2022. This has already begun with events such as Art SG and Sail GP in January.

KEYWORDS IN THIS ARTICLE

• Singapore tourism expected to recover in 2024, S$110m to be pumped into new events
• Here’s what needs to change as Chinese tourists return

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Growth of travel, consumer sectors could ease in 2023, as tourists tighten purses and residents take spending abroad: MAS

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SINGAPORE — Despite the recent resurgence of the travel- and consumer-facing sectors, Singapore's central bank said Thursday (Oct 27) that the recovery of these sectors could slow next year, with economic uncertainties casting a pall over consumer sentiment.

• The recovery of the travel and consumer sectors could slow in 2023, with economic uncertainties and high inflation impacting affecting sentiment
• Any pent-up demand from Singapore consumers will also more likely be tilted towards overseas travel than domestic spending
• There could be some respite for consumers and the air transport industry should inflation as well as oil prices moderate
• The Monetary Authority of Singapore was giving its take on 2023's outlook in its bi-annual macroeconomic review

Any pent-up demand from Singapore consumers will also more likely be tilted towards overseas travel than domestic spending, since outbound figures are still below pre-Covid levels, the Monetary Authority of Singapore (MAS) said in its latest macroeconomic review.

"The lifting of travel restrictions in most markets, strong pent-up demand and expanded household savings have fuelled a resurgence in travel activity since mid-2022," it said in the bi-annual report. 

"Nonetheless, the recovery could be hampered by the weakening global growth outlook, with cost considerations still a major concern."

Singapore looks set to experience a "muddied" growth outlook  next year due to economic pressures faced by the country's main trading partners, the report stated.

While the economy here is expected to see growth of 3 to 4 per cent this year, MAS forecasts that this growth will moderate to a "below-trend" pace next year.

It also warned that the risk of the global economy slipping into a deeper and more protracted downturn is "substantial", and that a scenario of persistently high inflation could put the United States and the Eurozone at risk of a recession that could spill over to some Asian economies.

RECOVERY CONTINUES PAST 2022

Despite this, MAS said that it expects a continued recovery in the travel sector, which comprise cross-border air, land and sea transport; as well as the consumer sector that includes the accommodation, food-and-beverage and retail industries. 

In terms of domestic arrivals, Singapore Airlines expects air passenger capacity to recover to around 80 per cent of pre-Covid levels by end of the year, indicating that passenger loads are continuing to pick up. 

Visitor arrivals from Australia, Europe, India and Malaysia have recovered to 55 to 73 per cent of pre-Covid levels, while arrivals from China and Japan "languished" at 5 per cent and 23 per cent respectively, as travel restrictions in these locations remained tight.

For the accommodation sector, growth is expected to stay muted this year before staging "a more discernible" recovery next year.

"The rebound in tourism demand this year is unlikely to offset the fall in government bookings as well as staycation demand, as more residents begin to travel overseas again," MAS said.

Furthermore, the authority noted that the shortage of housekeeping workers due to the labour crunch has forced hotels to lower their occupancy rates, weighing on the ability to meet the uptick in demand in the sector.

For the consumer-facing retail and food-and-beverage sectors, increased visitor arrivals will impart "positive spillovers" in the near term, with some retail players performing better than expected this year, driven by "firm local demand", MAS added.

In addition, the "front-loading" of demand before the Goods and Services Tax (GST) hike in January 2023 could spur spending and bring the retail sector back to pre-Covid levels.

This means that consumers might choose to buy their big-ticket items before the turn of the year, when the GST rate will increase from 7 per cent to 8 per cent.

The GST rate will again be raised from 8 to 9 per cent at the start of 2024. 

The central bank added that the inflow of tourists has also further bolstered sales since April, with key events such as the Formula One Singapore Grand Prix, Tour de France Singapore Criterium, and the Great Singapore Sale in the second half of 2022 helping to boost spending.

SLOWING MOMENTUM

Beyond 2022, MAS also noted there could be some respite for consumers and the air transport industry should inflation as well as oil prices moderate.

However, growth momentum for the consumer and travel sectors could decelerate in 2023, the report said. "Higher inflation alongside the uncertain economic environment could dampen consumer sentiment," MAS predicted. 

Structural factors could also continue to weigh on airlines' profitability.

Despite the pace of recovery in tourist arrivals seen in 2022, business travel may still not recover to pre-Covid levels as meetings shift online and companies commit to reducing business travel carbon emissions given sustainability concerns.

As for spending by residents, MAS said that some retail players have been performing better than expected this year despite increasing resident outbound travel. 

However, any unfulfilled pent-up consumption demand in 2023 is likely to be tilted towards overseas travel rather than domestic spending, it added.

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Singapore hotels declare healthy outlook

SINGAPORE, 19 May 2022: Singapore’s mid-market hotel sector will continue to post healthy post-pandemic growth performance, fueled by increased tourist demand and reflected by heightened investment.

According to JLL’s Singapore mid-market hotels outlook 2022, occupancy and investment in the sector will continue to recover in the second half of the year despite broader economic challenges, including staffing shortfalls, inflationary-driven supply issues, and more industry-specific requirements such as digital upgrades to properties.

Over the past 18 months, the stable performance of Singapore’s mid-market hotel segment has been linked to various drivers, including demand for staycations and soaring demand for longer-term temporary accommodation.

JLL data and analysis suggest that the resiliency of the mid-market sector will be further reflected in a solid rebound in investment volumes in 2022, forecast to end of the year at SGD400 million (USD288 million). In the first quarter of 2022 alone, mid-market hotel transactions totalled SGD103 million (USD74 million), representing the entire half-year volume of 2021 in three months.

“Singapore’s mid-market hotel segment is firmly on investors’ radars as they take a longer-term view on changing consumption habits and new conversion opportunities available to operators. The pandemic highlighted the sector’s role in accommodating longer-term stays, and we see a broader push from the mid-market space to transform properties into co-living spaces,” said JLL Hotels & Hospitality Group head of Singapore mid-markets, Noel Neo.

The trend of co-living conversion has been highlighted by the launch of LHN Group Four Star’s joint venture under the Coliwoo brand and the more recent partnership between SLB Development Ltd and Weave Living to convert the Hotel Clover in Jalan Sultan into a co-living property.

According to JLL, for the Singapore mid-market to differentiate offerings and address a slowdown in new supply, various operational issues must be addressed to enhance the opportunity to attract guests and investors.

Staff shortages in Singapore’s hospitality industry will continue to present challenges for mid-market hotels. According to JLL, operators that enhance benefits and provide a clear career path will attract and retain talent with greater success. Additionally, offsetting rising inflationary-influenced supply chain costs will push smaller hotels in Singapore to seek partnerships with larger brands to influence better pricing on goods and services. Furthermore, the digitalization of the mid-market segment will also need to ramp up for the industry’s acceleration to continue, including the adherence to a property management system (PMS) and other tech-inspired experience tools.

“There is a unique opportunity for Singapore’s mid-market hotel sector to address challenges swiftly and decisively with a clear operational strategy and a forward-looking lens. Macro-economic factors will continue to influence the fortunes of the sector, but by taking a partnership approach with asset management providers, many mid-market operators can better future proof their assets and attract more guests and capital,” says Pierre Marechal,  JLL Hotels & Hospitality Group vice president, advisory and asset management, Asia Pacific.

For more details, check out JLL’s Singapore mid-market hotels outlook 2022

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DUBAI: The mood at the International Air Transport Association (IATA) annual general meeting in Dubai earlier this week was upbeat. Airlines are expected to generate a net profit of about US$30 billion in 2024 , based on IATA’s newly revised forecast.

Air fares that soared post-pandemic are starting to normalise as airlines gradually restore capacity. However, consumers should not expect air fares to return to 2019 levels. Instead, prices are likely to remain significantly higher .

Record-high revenues are expected this year, but also record-high expenses. IATA said it is not realistic to expect air fares to ever return to pre-COVID levels because the higher costs the industry is now paying are permanent.

From geopolitical headwinds to supply chain constraints and rising costs, the airline industry has never faced more challenges at once.

MANY CHALLENGES, ALL AT ONCE

US$30 billion may sound considerable, but that works out to a margin of only 3.1 per cent or a profit of about US$6 per passenger. With margins still very thin, any decline in demand could have major ramifications.

Taxes are on the rise and the increased focus on sustainability has a cost. For example, the cost of sustainable aviation fuel is now three to four times higher than conventional fuel and while it should decline as production increases, there will still be a major gap.

“It’s unrealistic for airlines to absorb all the costs,” said IATA Director General Willie Walsh in a media briefing. “It’s not that we want to put prices up, but we have to be honest.”

He added it is still cheaper to fly now than prior to the pandemic when factoring in inflation and noted how air fares steadily declined in the decade prior to the COVID-19 pandemic. IATA believes consumers are also now able to afford higher fares given the growth in average wages has generally outpaced the growth in inflation.

Supply chain constraints leading to delays in delivering new aircraft are expected to persist, so there will likely continue to be a demand-supply imbalance.

Airlines trying to cope with these delays by leasing additional aircraft or extending leases of existing aircraft have also faced increasing costs, given the limited availability has pushed up lease rates.

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Other challenges include higher debt levels due to the financial overhang from the pandemic and exacerbated by the current environment of high interest rates. There are also geopolitical issues that have already led to the closure of large chunks of airspace in Russia and the Middle East, resulting in much longer flights on some routes. Elections this year in many major markets, including the United States, also create uncertainties.

NOTHING STOPPING ASIAN TRAVELLERS

However, airlines are generally upbeat and in Asia, they are particularly confident as the region is the main growth driver for the global industry. Economies in Asia are relatively strong with an expanding middle class population that is eager to travel, driving up demand.

Asians are generally not thinking twice about travelling. Recent jitters about in-flight turbulence in the aftermath of Singapore Airlines flight SQ321 , which barely came up during the IATA meeting, is also not likely to impact demand.

Compared to other regions, sustainability or environmental concerns does not seem to be impacting demand in Asia. Asia’s air transport market is almost fully recovered from the pandemic and there is a new push to expand airport infrastructure, facilitating a new period of growth.

In Asia-Pacific, a modest US$2 billion in net profits are expected in 2024, up from about US$200 million in 2023. However, these figures do not tell the full story as there are major variations in the financial performance of Asian airlines.

Chinese carriers are particularly struggling due to the slow recovery of China’s international market. Capacity for domestic flights in China, now significantly above pre-COVID levels, is also outstripping demand - the opposite of the demand-supply imbalance in the rest of Asia.

In Southeast Asia, full-service network airlines have been doing extremely well with record profits recently posted by Singapore Airlines , Thai Airways, Malaysia Airlines and Philippine Airlines.

These and a few other Asian airlines have captured headlines with big profits, but many Asian airlines are in much weaker financial position than they were prior to the pandemic and would be vulnerable if a new crisis emerges.

The airline industry is notoriously cyclical. And there can be a massive swing at any time, bringing an abrupt end to the current bullishness.

There is no denying that airlines in Asia - and globally - face a host of challenges.

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Air industry in a sweet spot.

However, the demand environment is exceptional. Even if air fares come down from their highs last year, they will likely remain at high enough levels to cover the increased costs.

There is a major silver lining in all the aircraft delivery and supply chain issues in that airlines have become more rational and disciplined. Prior to the pandemic, competition was often irrational and airlines lacked capacity discipline, particularly in Southeast Asia.

While it is never an easy business and navigating the airline business in some respects now seems more difficult than ever before, 2024 is not a bad time to be an airline.

The jubilation in Dubai the last few days, with host airline Emirates spending lavishly three weeks after posting a record annual profit, is a testament to the sweet spot the industry may be enjoying.

Brendan Sobie is the founder of Singapore-based independent aviation consulting and analysis firm Sobie Aviation.

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GamesBeat Summit 2024: Esports – the Power of growing community

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A lot has changed over the last two and a half years in the esports industry. Industry-wide consolidation and cooling interests from venture capital inspired a panel on the esports winter at GamesBeat Next 2022. While the industry is still finding a new normal, we hosted a panel at GamesBeat Summit 2024, with Monica Dinsmore, Sr. director, esports and brand marketing at Electronic Arts, and Mike Sepso , CSO at ESL Faceit Group, to learn more about why publishers continue to invest and how service providers can drive in-game outcomes.

Both Dinsmore and Sepso agreed that the industry is in a period of right-sizing after investing into an industry that’s still developing a sustainable business model. However, esports competitions are still driving critical outcomes.

“At EA, we primarily see esports as a marketing tool. It’s pretty much the most effective marketing tool that we’ve seen. It drives engagement and it targets what we call the ‘white hot center’ of our player base,” said Dinsmore.

Esports helps EA reach its most engaged audience (and the players who spend the most), but it is also an effective tool to help the publisher re-engage lapsed players and teach new ones how to get better at their games.

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However, directly attributing outcomes to esports can be difficult, but EA wants to make sure esports is amplifying in-game activity. According to the publisher’s analysis of similar players, gamers who registered or engaged in a competition spend between two to five times more than their counterparts. 

“When you think about the audience, the activity and the engagement, it’s all moving up. In this world, if you can take people’s attention away from other things and hold on to them for a while, it’s very valuable,” said Sepso.

Growing the pie

While esports continues to drive engagement, part of supporting a thriving community is helping it grow. Both EA and ESL Faceit Group have made a number of efforts to support aspiring competitors.

All three of EA’s esports titles — Madden, EA FC and Apex Legends — have open events that all players can enter as a part of their ecosystems. “We call it couch to champion so anybody can participate, anyone can register and if you get enough points throughout the season, you can find yourself on the big stage.”

The first ever MADDEN MILLIONAIRE ? Congrats to @Henry773_ on his #MaddenBowl win! The best Madden NFL 24 player in the world has been crowned ? ? pic.twitter.com/Jp90iPC0N3 — Madden NFL 24 (@EAMaddenNFL) February 10, 2024

Ultimately, the industry has shifted towards a hybrid ecosystem that combines the benefits of open amateur events and the stability of franchised leagues.

“We have the benefit now of history to be able to to tell that there isn’t just one fit for every game and every community in esports. You have to tailor it to the game, to the community, to the stage of the game,” said Sepso. “I think we now at least have tried everything you can.”

The conversation also touched on the significance of partnerships between publishers and tournament organizers. Monica highlighted the flexibility and technical expertise gained from such collaborations, enabling the expansion of esports programs without incurring internal expenses. Sepso emphasized the role of partnerships in creating sustainable growth models, leveraging resources to benefit players, fans and business objectives.

Of course, professional teams shouldn’t be overlooked. While neither Dinsmore nor Sepso could speak to their perspective directly, both highlighted unique approaches. Dinsmore pointed to EA FC partnering with real-world football clubs. Sepso highlighted the Esports World Cup Foundation’s Club Support Program , but “ultimately, it’s the team’s responsibility to figure out how to keep themselves in business and grow.”

Long term outlook for esports

Dinsmore and Sepso touched on their companies long-term strategy for esports.

Both EA and EFG are reaching out to other communities to help cultivate the next generation of fandom. EA FC and Madden collaborate with their real-world sports counterparts as a part of their esports programs. Additionally, EFG specifically designs its DreamHack events (among others) to welcome in other cultural communities.

Of course, EFG is also turning its eyes to the Middle East. Savvy Games Group , which is funded by Saudi Arabia’s Public Investment Fund, acquired and merged the esports conglomerate in 2022. This summer, EFG will operate the first ever Esports World Cup outside of Riyadh.

“Up until about 2 1/2 three years ago, nobody really had meetings where we were talking about the Middle East as a big market. But over 60% of the population is under 30. They’re all gamers,” said Sepso. “This enormous Esports World Cup system and having it take place in Riyadh serves two purposes. One, it’s providing a lot of capital into the system when it when a lot of it went away a few years ago… [and] it’s also exposing that fan base and that player base that doesn’t get to travel to L.A. or Singapore or Beijing.”

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Intelligent Investment

2024 Global Hotels Outlook

Sector-specific tailwinds should offset broader economic challenges.

March 20, 2024 7 Minute Read

Executive Summary

After RevPAR rose to a record high in 2023, CBRE expects the U.S. to see another year of improvement in 2024. RevPAR growth is forecast to reach about 3% year-over-year, driven by the ongoing recovery in inbound international travel; strong performance in the meetings and group events segment; and continued demand from leisure travelers. Urban locations with leisure appeal and higher-priced hotels should outperform, but traditional hotel demand and pricing will likely be tempered by competition from alternative sources like cruise lines, short-term rentals, and glamping.

The Caribbean has made a remarkable recovery over the last 24-36 months and appears poised for continued growth, backed by a continued influx of tourists from the U.S. and limited new supply. While some risks remain, particularly the impact of climate change and hurricanes, the region’s resilience during the pandemic should provide a foundation for continued strong performance over the course of 2024 and beyond.

The Mexican Ministry of Tourism estimates that in 2024, international tourist arrivals to the country could increase by up to 5.4% and foreign expenditures by up to 0.3% compared to 2023. Beach resorts, such as the Riviera Maya, Los Cabos, and Cancun, can expect to see above-average hotel occupancy in 2024, supported by new developments and even with the completion of new hotel rooms this year.

Europe's hotel and tourism sector is poised to gain further momentum in 2024, with domestic and short-haul leisure travel remaining the primary drivers of hotel demand. Additional tailwinds will come from a rise in international long-haul leisure travel from Asia. However, following strong growth in RevPAR fueled by inflation and surging demand in 2023, momentum is likely to decelerate to a high single-digit rate, indicating a return to more normalized levels of demand growth.

Asia Pacific

Although airline capacity in Asia Pacific is yet to fully recover to pre-pandemic levels, CBRE forecasts that total international tourism arrivals should reach 2019 levels by the end of this year. While ADRs are expected to normalize in most markets, occupancy growth in well-managed assets should drive revenue growth. Operators that demonstrate flexibility and capitalize on the upswing in tourism will be the main beneficiaries, particularly those in North Asian markets, such as Japan and Korea.

2024 U.S. Outlook

RevPAR was up 3.2% year-over-year in 2023, boosted by a 2.7% year-over-year increase in ADR and a 0.5% year-over-year increase in occupancy. Most of the growth in RevPAR occurred in H1 2023. While early leaders coming out of the pandemic, such as economy and midscale hotels, reported slower growth, luxury hotels, which had been lagging, posted strong RevPAR growth of 4.6% year-over-year.

CBRE expects another year of improved performance in 2024. RevPAR growth is forecasted to reach about 3% year-over-year, driven by the ongoing recovery in inbound international travel; the strong performance in the meetings and group events segment; and continued demand from leisure travelers. However, growth may be tempered by rising demand for alternative lodging sources such as cruises and short-term rentals. The trend of higher-end hotel outperformance will continue in 2024, with luxury and upper-upscale RevPAR expected to increase by 3.8% year-over-year and 3.7% year-over-year, respectively.

Urban locations will show the strongest growth in RevPAR in 2024, fueled by the continued recovery of inbound international travel; sustained strength in the groups segment; and modest improvement in traditional corporate travel. The recovery in international visitors could also provide a meaningful boost, lifting occupancy by as much as 1.1 percentage points year-over-year, bringing levels within striking distance of all-time highs.

Gross operating profit (GOP) margins declined most of the year except for Q1 2023, which benefited from easy comparisons when the Omicron variant constrained demand. As of the end of December 2023, margins had declined by 125 basis points (bps) over the year, ending the period 256 bps below 2019 levels on an aggregate basis. CBRE expects margins to remain under pressure as cost increases will outpace RevPAR growth amid a renewed focus on brand standards; the tight labor market; and strong wage growth. Below the GOP line, higher insurance and property taxes will pose a greater burden on operational expenditure, while increasing construction costs will impact cash flows.

RevPAR for several U.S. hotel markets ended the year well above 2019’s levels. These included New York City, where the city’s strong leisure and global appeal along with Airbnb restrictions pushed up room rates to record highs; and San Diego, where a healthy mix of group business, leisure travel, and government demand continue to make the city a post-Covid top performer. Laggards include some markets in California, the Pacific Northwest or the Upper Midwest, where net migration outflows, rising crime and political issues have created tension, meaning it could take several more years for RevPAR to recover.

CBRE forecasts short-term interest rates to decline by 100 bps in 2024, which should support higher hotel investment volumes. Trophy assets and boutique hotels in supply-constrained differentiated locations will continue to offer attractive opportunities this year. Group hotels with leisure appeal and newly renovated premium select-service hotels associated with globally recognized brand families in strong demand markets will also be keenly sought after.

2024 Caribbean Outlook

Despite the devastating impact of COVID-19 on the Caribbean, which is heavily reliant on tourism, the region has made a remarkable recovery over the last 24-36 months and now appears to be on its best ever footing.

The rollout of COVID-19 vaccines and substantial government subsidies in the U.S., combined with a pent-up desire to travel, fueled an influx of tourists to the region in late 2021 and 2022. While some level of stabilization was expected in 2023, particularly with the resumption of cruises and the reopening of European tourism markets, the Caribbean managed to grow its share of overall travelers’ spending. CBRE’s analysis of a sample of the region’s largest markets shows all posted strong visitor arrival gains over the prior year, with a majority easily surpassing pre-COVID volumes.

Puerto Rico and Punta Cana, among the region's most active airports, posted visitor arrival increases of 18.3% year-over-year and 13.4% year-over-year in 2023, respectively, marking a significant improvement from 2019 levels. Aruba and Jamaica, two destinations in which U.S. tourists account for most arrivals, both posted increases of more than 10%, ending 2023 well ahead of pre-pandemic patterns.

Factors fueling growth in visitor arrivals include U.S. households’ changing lifestyles and priorities, which are pushing travel and experiences up their agenda. The pandemic showed many Americans how convenient the Caribbean is for a vacation from the U.S., while the adoption of flexible work-from-home policies translated into longer stays. Many tourists are also discovering the value of the All-Inclusive model compared to the typical European Plan which allows guests to enjoy their hotel stay without the unwanted surprise of additional charges upon checkout.

Limited new supply bodes well for the Caribbean hotel sector from an investment standpoint. Except for the Dominican Republic (Punta Cana), which saw the addition of just under 1,800 new rooms to inventory, representing about 2% of total supply, the completion of new hotels across the region was limited in 2023. While the pipeline of new developments and the pace of construction is solid, it continues to lag growth in visitors. In larger markets, local financing is becoming a credible alternative to borrowing in the U.S., thanks to major government incentive programs.

While some risks remain, particularly the impact of climate change and hurricanes, which have pushed up insurance rates, the region’s resilience during the COVID-19 pandemic should provide a foundation for continued strong performance over the course of 2024 and beyond.

Figure 1: Americas Hotel Performance and Key Macroeconomic Indicators as a % of 2019

2024 mexican outlook.

The hotel segment in Mexico continued to recover during 2023. From January to November, slightly over 37.5 million international tourist arrivals were recorded to the country, representing a 10.3% increase above the same period of 2022 and just 6.8% below pre-pandemic levels.

Improvements to aviation infrastructure and the addition of more flights boosted international tourist arrivals through this channel to just over 20.3 million as of November 2023, 15.6% higher than the same period of 2019. In terms of tourism revenue, US$27.4 billion was generated in the year to November 2023, a figure 24% higher than the same period in 2019. The Mexico Ministry of Tourism estimates that by 2024, international tourist arrivals to the country could increase by up to 5.4% year-over-year, while revenue could rise by up to 0.3% compared to 2023.

Hotel occupancy in the 70 tourist destinations covered by DataTur reached 59.6% as of November 2023, a figure 80 bps below the same period of 2019. The Ministry of Tourism expects occupancy to stay at roughly the same level in 2024. Beach resorts such as the Riviera Maya, Los Cabos, and Cancun are expected to see continued hotel occupancy at above-average rates, driven by the development of new hotel projects and the completion of new hotel rooms scheduled for 2024.

Figure 2: Mexican Hotel Performance and Key Macroeconomic Indicators as a % of 2019

2024 european outlook.

Europe's hotel and tourism sector is poised to gain further momentum in 2024, with domestic and short-haul leisure travel remaining as the primary drivers of hotel demand. Additional tailwinds will be provided by a rise in international long-haul leisure travel from Asia, supported by the addition of more long-haul flights, which should support solid growth in the volume of long-haul inbound travelers.

Business travel, particularly the international long-haul segment, is expected to show meaningful year-over-year improvement. However, this category will lag the leisure segment due to the slow return to the office in some markets and the growing prevalence of virtual meetings.

Several major upcoming sporting and entertainment events should help certain hotel operators increase room rates and raise occupancy. These include the 2024 Summer Olympics in Paris and the 2024 UEFA European Football Championship in Germany, as well as major concert tours by Coldplay and Taylor Swift.

The conflicts in Ukraine and the Middle East may cause some travelers to shift their travel plans to northern and western Europe, as was seen during prior periods of conflict. As these are generally higher ADR markets, this shift could be another catalyst for occupancy growth and rate compression during peak periods.

After strong growth in RevPAR fueled by inflation and surging demand in 2023, momentum is likely to moderate. CBRE expects RevPAR growth in 2024 to decelerate to a high single-digit rate, indicating a return to more normalized levels of demand growth.

Hotel operators’ ability to adapt quickly to changing market conditions during the pandemic has led to improved operational efficiency, ensuring they are well positioned to maintain profitability in the face of potentially challenging economic conditions. However, simultaneous increases in utility costs and ongoing wage growth require operators to adopt a proactive approach to revenue management and implement rigorous cost-control measures.

The luxury and resort segments are expected to outperform other categories in 2024 due to strong wealth creation and high-income groups’ growing preference for personalized experiences. These drivers are less vulnerable to macroeconomic headwinds, further solidifying the positive outlook for these segments.

From 2009 to 2023, overall European hotel supply grew at a compound annual growth rate (CAGR) of 1.4%. Starting this year, supply growth is expected to moderate to a CAGR of just 1%, well below the estimated 3% year-over-year rise in visitor arrivals. This will provide a solid foundation for future RevPAR gains.

The UK and Germany are at the forefront of European hotel developments, collectively accounting for over a third of the total hotel pipeline from 2024 to 2028. These markets will therefore experience relatively higher growth in the number of hotel rooms.

France, Spain and Italy will see a more favorable supply and demand balance, with relatively limited new hotel development and increased international inbound visitors in 2024 and beyond. These trends underscore the potential for further gains in RevPAR and operating income in these markets and reaffirms their status as attractive investment targets.

Average hotel occupancy in Europe rose to 69% as of end-December 2023, signaling a general recovery in occupancy across key markets. Nevertheless, this figure remains about 500 bps below 2019 levels. While the uptick in occupancy has been noteworthy, it will have only a moderate impact on hotel revenue growth in 2024.

After significant interest rate increases negatively impacted hotel investment volume across most European markets in 2023, hotel transactions are expected to gradually pick up in 2024. Investment activity is likely to be backloaded in the second half of the year after investors obtain clearer insight into interest rate movements.

Improving operating fundamentals will boost confidence among some hotel owners, making them reluctant to lower asking prices. This will set hotels apart from other commercial real estate sectors that have undergone substantial repricing. At the same time, investors are expected to maintain a more patient yet active stance, guided by the expectation that easing inflation will eventually lead to lower financing costs.

The enduring strength in leisure demand and increased preference for personalized experiences will continue to direct buyers to hotels in popular tourism and resort destinations. We expect institutional funds and private investors to strategically allocate capital towards premium hotels in key leisure and tourism locations across Spain, Portugal, and Italy over the course of 2024.

We also expect opportunistic investors to eye European hotel properties that have the potential for operational improvements. The introduction of stricter ESG policies and regulations for hotels will also prompt more retrofitting to ensure properties meet higher sustainability standards.

Figure 3: European Hotel Performance and Key Macroeconomic Indicators as a % of 2019

2024 asia pacific outlook.

According to the Official Airline Guide (OAG), total available aircraft seats in Asia Pacific in 2023 remained below 2019 levels due to airlines’ inability to bring back staff and a shortage of aircraft for domestic and international flights. As of December 2023, most major markets, except for mainland China, were operating at a 10-15% deficit in available international aircraft seats.

Despite this, according to International Air Transport Association (IATA), Asia Pacific airlines posted a 126.1% rise in full-year international 2023 traffic compared to 2022, maintaining the strongest year-over-year rate among the regions. Capacity rose 101.8%, and the load factor climbed 9.0 percentage points to 83.1%. December 2023 traffic rose 56.9% compared to December 2022.

Although further growth in international travel is expected in 2024, the challenging global economic environment could impede the recovery. Concerns include persistently high inflation, which is raising transport and accommodation costs for tourists, and slower economic growth, which typically correlates with fewer international departures. This means that markets that are dependent on international departures will likely lose momentum over the next six months.

Air passenger forecasts in the region nevertheless remain positive. According to the IATA's December 2023 forecast, passenger throughflow for airports in Asia Pacific is set to surpass 2019 levels during 2024. Growth in air passengers in Asia Pacific is expected to eclipse that in Europe and North America.

A rise in international arrivals from key markets, particularly Japan and mainland China, pushed up Asia Pacific hotel room rates in 2023.

After experiencing demand-driven growth in 2022 as borders re-opened, ADR growth in 2023 was driven by hotel owners’ need to offset rising operational costs alongside operators’ preference to drive ADR to mitigate inflation.

Demand-based pricing has allowed operators to use ADR to offset rising inflation across the region.

This flexibility in ADR change can also be attributed to the increased market share of individual business and leisure or transient travelers which are more subject to changes in the daily rate than corporate group stays.

While ADR is expected to normalize in most markets, occupancy growth in well-managed assets should drive revenue growth in 2024. Hotel operators in North Asia markets, such as Japan and Korea, are particularly well positioned to benefit. While ADRs in Hong Kong SAR have recovered to pre-pandemic levels, occupancy continues to lag as non-mainland Chinese visitors have yet to return to the city in significant numbers.

Figure 4: Asia Pacific Hotel Performance and Key Macroeconomic Indicators as a % of 2019

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Head of Hotels Research & Data Analytics

• Phone +1 804 201 2004

Christine Bang

Research Manager

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• Phone +1 852 2820 1567

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• Phone +65 63478863
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