ANALYSIS: SINGAPORE TOURISM
Growth of Singapore’s hospitality sector to decelerate in 2013 Global headwinds will slow down tourism and hotel performance in 2013.
nalyst and government forecasts anticipate the Singapore hospitality sector’s booming growth to decelerate slightly in 2013 as more companies hold back on business trips and visitors spend less during their stay. Signs of slowing down Visitor arrivals – one of the key indicators in hospitality performance since more visitors translate to more sector revenues – will still grow in 2013 but by a muted 5.5% to 15.3 million visitor arrivals, based on government data and a DBS Group research report by analysts Derek Tan and Munyee 22 SINGAPORE BUSINESS REVIEW | FEBRUARY 2012
We forecast visitor arrivals to grow 5.5% to 15.3 million from the expected 14.5 million visitors in 2012
Lock. “We believe that 2013 is likely to be another year of growth in visitor arrivals. We forecast visitor arrivals to grow 5.5% to 15.3 million from the expected 14.5 million visitors in 2012, putting the sector within reach of its 17 million visitor target by 2015,” says the DBS report. This 5.5% growth pace is slower than the 6% growth registered in 2010 (latest available full-year figure) and the brisk 28% growth in 2010. The first quarter of 2012 had initially given hope that the hospitality sector was regaining its stride, but record sluggishness in the second quarter of 2012 has confirmed fears of a slowdown
creeping into the sector. “The Singapore hospitality sector started brightly with visitor arrivals continuing to exhibit strong growth momentum in 1H12 on the back of a strong conference and events line-up, despite ongoing global uncertainties. Visitor arrivals totaled 7.1 million visitors, representing an 11.4% increase compared to a year ago,” says the DBS report. However, the pace seems to have winded down starting in 2Q12 when the hospitality sectored posted a growth rate of 8%, the slowest over the past eight quarters. “While we believe that the
Published on Feb 13, 2013