Singapore aims for $50 billion tourism boom by 2040

[SINGAPORE] Singapore's tourism spending is expected to reach $47 billion to $50 billion by 2040, or 1.7 times higher than in 2024, according to Minister-in-Charge of Trade Relations Grace Fu on April 11. In 2024, the country's tourism receipts reached an all-time high of $29.8 billion, boosted primarily by visitors from major spending economies like as China, Indonesia, and Australia.

Notably, Chinese tourists accounted for nearly 20% of total tourism receipts, reflecting Singapore’s enduring appeal as a premium destination for high-spending travelers. Meanwhile, Indonesian visitors contributed significantly to luxury retail and hospitality sectors, with average spending per capita rising by 12% compared to pre-pandemic levels.

International tourist arrivals reached 16.5 million, indicating a significant post-pandemic comeback. Looking ahead, the rate of tourism spending is projected to outstrip the growth in visitor arrivals as Singapore turns its focus from volume to value, according to Singapore Tourism Board (STB) CEO Melissa Ow. This vision is represented in the STB's tourist 2040 road plan, which is based on three essential pillars: fostering future demand, increasing Singapore's appeal as a destination, and establishing a future-ready tourist industry.

To support this shift, STB is ramping up investments in digital transformation, including AI-driven personalized travel recommendations and seamless contactless payment systems. These initiatives aim to elevate the visitor experience while ensuring Singapore remains competitive against regional rivals like Bangkok and Dubai, which are also vying for high-value tourists.

Ms Fu named the Mice (meetings, incentives, conventions, and exhibitions) category as a "high-growth and quality visitor segment" as one of the primary growth engines. Ms Fu and Ms Ow spoke at the Tourism Industry Conference on April 11.

The yearly event, hosted at Suntec Singapore Convention and Exhibition Centre, allows STB and the tourism and travel trade industry to assess tourism trends and market data. STB hopes to treble Mice tourism revenues by 2040.

Industry experts highlight that Singapore’s strategic location, world-class infrastructure, and reputation as a safe, business-friendly hub position it well to capitalize on the growing demand for hybrid and large-scale international conferences. The recent success of events like the Singapore Airshow 2024 and the World Cities Summit has further cemented the country’s standing as a premier Mice destination.

Mice passengers spend twice as much as leisure travellers, according to Ms Fu, and with the global Mice sector expected to treble in value over the next decade, Asia-Pacific is emerging as one of its fastest-growing regions. STB is also looking into the creation of a new Mice Hub in Singapore's central sector. The new facility is planned to complement and strengthen the Mice offerings in the area, as well as use existing Mice venues and attractions in the city to improve the tourist experience.

In parallel, initiatives are underway to revitalize important tourism hotspots such as Orchard Road and Sentosa, with a focus on providing more diverse and immersive experiences. For example, Minion Land debuted on February 14 at Universal Studios Singapore, while the forthcoming Singapore Oceanarium, which will replace the S.E.A. Aquarium, is scheduled to open in the first half of 2025.

Beyond physical attractions, STB is also tapping into the growing demand for sustainable tourism. Initiatives like the “Singapore Green Plan 2030” include eco-certifications for hotels and carbon-neutral event guidelines for Mice organizers, aligning with global trends toward responsible travel.

To amplify Singapore’s global appeal, STB has also launched partnerships with trendy brands such as toy collectibles giant Pop Mart and South Korean lifestyle label Wiggle Wiggle, with the aim of bringing fresh, pop culture-driven experiences to the city.

Despite the optimism, Ms Ow remained cautious amid ongoing trade tensions. She said: “This year, the global economic outlook appears more uncertain. For now, it is too early for us to determine the impact on travel and tourism, and we will monitor these developments very closely.”

Ms Fu added: Following the imposition of the United States tariffs, we expect a more challenging global environment. As countries revise their growth rates downwards, we expect consumer confidence to be adversely affected.

“Even as we look ahead to a pipeline of events that will invigorate our tourism landscape, we must brace ourselves for near- to medium-term volatility that will test our adaptability.”

STB projects tourism receipts to reach between 29billionand29billionand30.5 billion and international visitor arrivals to hit 17 million to 18.5 million in 2025. Dr Ye Guangzhi, assistant professor of economics at NTU, believes the ongoing trade tensions could impact tourism. “When economic growth slows, overall demand for tourism tends to decline. This is because tourism spending is generally considered ‘elastic’. It is more likely to be reduced or postponed compared with more ‘inelastic’ types of spending, such as on every day necessities,” he said.

“As a result, the tourism industry is particularly vulnerable to downturns in economic confidence and shifts in currency values, both of which can significantly influence travel decisions and destination preferences.” For the year ahead, STB has a slew of new tourism products and experiences, partnerships as well as refurbishments planned.

New cruise offerings include Disney Cruise Line’s first Asia cruise – the Disney Adventure – and the introduction of Ritz-Carlton Yacht Collection’s Luminara for the luxury segment. Marina Bay Cruise Centre Singapore will also undergo a $40 million investment to increase its terminal capacity from 7,000 to 12,000 passengers.

The cruise sector’s revival is a critical component of Singapore’s tourism strategy, with the country aiming to reclaim its status as a leading homeport in Southeast Asia. The return of major cruise lines signals confidence in the region’s recovery, with passenger volumes expected to surpass pre-pandemic levels by late 2025.

Singapore will host medtech conference LSI Asia 2025, the first in Asia, and Herbalife Extravaganza 2026, with an expected 25,000 visitors. Destination hotels, in which hotels serve as destinations in their own right due to distinctive elements such as experiences, attractions, and architecture, have been noted as a trend. An example is Banyan Tree's Mandai Rainforest Resort, which opened in April.

Visitors can also expect more sports and music events, as well as lifestyle options that place a greater emphasis on wellbeing. Ms. Ow stated that in 2024, tourism companies invested more than $3.2 billion in new products and experiences, but noted that "there is much to be done".

“Work has already started, and we are putting in place the building blocks that will anchor our future as a world-class destination, as a global hub and a home that we proudly advocate for,” she said.