STB reports modest tourism numbers, but strong domestic consumption and VTLs provide hope for future growth
Singapore’s tourism sector faced a challenging year in 2021, with visitor arrivals and receipts plummeting to new lows due to the pandemic. The Singapore Tourism Board (STB) reported only 330,000 visitors and an estimated S$1.9 billion in tourism receipts—far below the 2.7 million visitors and S$4.8 billion receipts of 2020. These figures are a mere fraction of the pre-pandemic tourism levels in 2019, which saw 19 million visitors and S$27.7 billion in receipts.
However, STB highlighted some “encouraging signs of recovery” despite the difficult circumstances. Key contributors to the recovery include the introduction of Vaccinated Travel Lanes (VTLs), which allowed international travellers to return gradually, and strong domestic consumption. The tourism industry also pivoted to offering new and innovative experiences for locals, resulting in a surge in domestic tourism.
Steady Growth and Positive Indicators for Recovery
STB noted that there was year-on-year growth in the last three quarters of 2021, with visitor arrivals increasing by 221% compared to the same period in 2020. Tourism receipts also nearly doubled in the second and third quarters of 2021. More than 100,000 Vaccinated Travel Passes were issued to short-term visitors between September and December 2021, with over two-thirds of those travellers already visiting Singapore by year’s end.
Keith Tan, STB’s CEO, acknowledged that the return to pre-pandemic tourism levels would take time and may not follow a predictable or linear path. He cautioned that the industry must remain prepared for unexpected developments. Nevertheless, he expressed confidence that the industry has learned from its experiences and is well-positioned to meet future demand.
Domestic Tourism and New Developments in the Hotel Industry
Domestic tourism played a critical role in supporting the sector, with around 1.9 million Singaporeans using tourism vouchers to spend over S$300 million at local attractions. While the voucher scheme has ended, STB plans to continue promoting domestic tourism alongside efforts to reinvigorate international travel.
In 2021, several new hotels with unique lifestyle concepts opened in Singapore, and existing establishments introduced new staycation experiences. The hotel industry reported an average occupancy rate of 56.2%, reflecting the ongoing challenges but also a gradual recovery. The meetings, incentives, conferences, and exhibitions (MICE) sector also saw a revival, hosting over 200 events in 2021 with nearly 50,000 attendees.
Tourist Attractions and Cruises Show Strong Rebound
Local tours saw strong performance, with approximately 320,000 local participants in 2021. New attractions like the Museum of Ice Cream and SkyHelix Sentosa were introduced, while established attractions refreshed their offerings. In the cruise sector, “cruises-to-nowhere” experienced a strong rebound, with more than 400,000 domestic passengers and no reported COVID-19 clusters on board.
Looking to the Future: Expanding International Reach and Sustainability Focus
Looking ahead, STB is focused on expanding its reach to key international markets. Collaborating with Singapore Airlines and Changi Airport Group, STB launched the “Welcome Back to Singapore” campaign in Germany and India, with plans to extend it to other countries. Sustainability remains a key focus, with STB working on a hotel sustainability roadmap and preparing for a wellness festival in 2022.
Additionally, STB is launching the Tourism Careers Hub in 2022 to support the recovery by investing in workforce development and promoting technological transformation within the sector. This initiative aims to strengthen the tourism workforce and ensure long-term growth in Singapore’s tourism industry.
