Singapore's tourism sector is anticipating a decline in spending despite an expected increase in visitor arrivals this year. The Singapore Tourism Board forecasts tourism receipts to be between 31 billion and 32.5 billion Singapore dollars ($24 billion to $25.6 billion) in 2026, down from a record 32.8 billion Singapore dollars in the previous year.
Visitor arrivals are projected to rise to between 17 million and 18 million, up from 16.9 million in 2025. This cautious outlook is attributed to concerns over geopolitical conflicts in the Middle East, which could negatively impact consumer and business spending.
Melissa Ow, CEO of the Singapore Tourism Board, noted that while visitor numbers increased by 3% in the first quarter compared to last year, spending is expected to soften due to muted demand in the coming months.
This sentiment aligns with broader trends in the business travel industry, where the Global Business Travel Association highlighted that geopolitical tensions and rising fuel costs are creating instability in international travel markets. Despite these challenges, Asia remains relatively resilient, accounting for over 40% of global business travel spending.
The tourism strategy for Singapore, known as "Tourism 2040," aims to boost tourism receipts to between 47 and 50 billion Singapore dollars by 2040.
To support the industry, the Singapore government plans to inject an additional 740 million Singapore dollars into the Tourism Development Fund over the next five years, alongside a separate fund of 5 million Singapore dollars to assist tourism businesses in expanding into new markets.
Furthermore, Singapore is looking to enhance its cruise tourism sector, with the Disney Adventure cruise ship now operating from Singapore and plans for a new cruise terminal set to open soon. Despite the uncertainties, Ow emphasized a long-term focus on tourism ambitions, indicating a conservative approach to expectations for the current year