Singapore’s tourism arrivals dip slightly, but Chinese visitors continues to surge

• As of YTD March 2025, Singapore recorded 3.0 million international visitor arrivals, a y-o-y decrease of 1.1%. This was mainly due to high base effects, caused by a concert-driven tourism boost in March 2024.
• Nonetheless, the top source markets maintained a strong recovery in international visitation. Chinese arrivals, in particular, demonstrated remarkable recovery on the back of visa exemptions, reaching 86.6% of the pre-pandemic levels observed in 2019.

One hotel opens in Q1 2025, but the rest of the year is expected to see a pickup

• In the first quarter of 2025, there was only one luxury hotel opening, the Raffles Sentosa Resort & Spa Singapore (62 keys).
• Upcoming hotel supply for the rest of the year was driven by midscale and upscale openings, with a notable trend towards lifestyle concepts. Notable openings included Mama Shelter Singapore Orchard (115), Moxy Singapore Clarke Quay (475) and Mett Singapore.

The softening of trading performance is mainly due to high base effects

• RevPAR declined year-on-year by a high single-digit as of YTD March 2025, mainly due to high-base effects from the previous year, which were boosted by high-profile concerts, particularly in March.
• One transaction took place in Q1 2025, namely the sale of Oakwood Studios for SGD 153 million. Investment activity was expected to pick up for the rest of 2025, with several ongoing transactions either in exclusive due diligence or having exchanged contracts.

Outlook: A positive outlook for international visitation and spending despite rising headwinds

• STB projects tourism receipts to reach between SGD 29 billion and SGD 30.5 billion, surpassing pre-COVID levels, with international visitor arrivals expected to hit 17 million to 18.5 million. Nonetheless, the global economic outlook remains uncertain amid ongoing trade tensions, which could impact tourism demand worldwide.
• Nonetheless, efforts to rejuvenate key tourism precincts in Orchard and Sentosa are underway, which should help drive more tourism demand in H2 2025. New tourism products, experiences and partnerships are also expected to facilitate new sources of demand growth.