‘Encouraging signs of recovery’ even as Singapore’s tourism sector hits new lows in 2021: STB

SINGAPORE: Singapore’s tourism numbers hit new lows in 2021, but there have been “encouraging signs of recovery” amid the introduction of vaccinated travel lanes (VTLs) and strong domestic consumption, said the Singapore Tourism Board (STB) on Tuesday (Jan 25).

In 2021, there were 330,000 visitor arrivals and an estimated S$1.9 billion in tourism receipts – much lower than the 2.7 million arrivals and S$4.8 billion in receipts in 2020.

It is also “only a fraction” of the 19 million visitors and S$27.7 billion in receipts from before the COVID-19 pandemic in 2019.

But STB noted some upsides such as year-on-year growth in the last three quarters of 2021.

“The introduction of various travel arrangements, such as VTLs, has encouraged the gradual return of international travellers.

“Domestic consumption has also been strong, as the tourism sector pivoted to develop new and innovative experiences for locals,” it said.

Mr Keith Tan, STB’s chief executive, said that it will take time for tourism numbers to return to pre-pandemic levels, although it will be hard to make any projections.

“We should not expect tourism to recover in a predictable and linear fashion and we must be prepared for further surprises, good or bad,” he added.

But he is confident that the tourism industry has “learnt from its experiences, and is poised to recapture demand when it returns”.

The return of international travellers has already seen a promising start, he said, noting that more than 100,000 Vaccinated Travel Passes were issued to short-term visitors between September to December last year.

“By the end of last year, more than two-thirds of these had already come to Singapore. STB will continue to find ways to simplify the processes with documentation required, and we will work with our partner agencies in the Government to expand the scope and the reach of the VTLs.”

GROWTH IN LAST THREE QUARTERS OF 2021

STB noted that visitor arrivals increased 221 per cent in the last three quarters of 2021, compared to the same period in 2020.

Tourism receipts for the second and third quarters of 2021 also nearly doubled from the same period a year before.

Of the international arrivals who visited Singapore between January and December, China (88,000), India (54,000) and Indonesia (33,000) were the largest source countries.

In the first nine months of 2021, tourism receipts reached S$1.2 billion, with visitors from China, Indonesia and India contributing S$432 million, S$127 million and S$58 million in receipts respectively.

As for domestic tourism, about 1.9 million Singaporeans used their vouchers at least once, resulting in S$300 million in voucher transactions – S$120 million of which were out-of-pocket payments for bookings.

Despite public health measures having a “dampening effect” on the use of the vouchers, Mr Tan said: “But all told, I’m satisfied with the way it reached out to Singaporeans and I believe it did provide a boost to our businesses in Singapore.”

And although the voucher scheme has ended, the broader SingapoRediscovers campaign will continue, he said.

“We will not let up on domestic tourism, even as we restart and step on the accelerator pedal for international tourism. So we will have to do a twin approach this year, and … maybe even next year, depending on how the situation evolves,” he added.

“But ultimately, we need to recognise that tourism in Singapore cannot depend on domestic tourism. We have to start pivoting back towards international markets, especially as international travel demand picks up.”