The view from the rooftop pool of the Marina Bay Sands Resort Hotel, which overlooks the skyline of Singapore’s Financial District.
Anthony Wallace AFP | getty images
Singapore, long seen as a bellwether for the global economy, is expected to moderate tourism spending this year despite predictions of another surge in tourist arrivals, reflecting concerns that conflict in the Middle East could hit consumer and business spending.
The Singapore Tourism Board projects tourism revenues of between 31 billion and 32.5 billion Singapore dollars ($24 billion to $25.6 billion) in 2026, compared with a record S$32.8 billion last year. International arrivals are projected to rise to between 17 million and 18 million this year, from 16.9 million in 2025.
The city-state is a regional hub for business travel and airline stopovers and has hosted major events, including the Formula One Singapore Grand Prix and concerts by megastars Taylor Swift, Coldplay and Blackpink. Tourism Responsible 6% of Singapore’s service exports in 2024, according to the Singapore Tourism Board.
Despite tourist numbers rising 3% in the first quarter from a year earlier, tourism spending is expected to soften due to “slow demand in the coming months,” Melissa Ou, chief executive of Singapore’s tourism board, said at the country’s annual industry conference.
The caution from Singapore tourism officials echoes broader concerns in the business travel industry. The Global Business Travel Association said geopolitical tensions and high fuel costs are creating volatility in international travel markets, while Asia remains comparatively resilient.
According to the Global Business Travel Association, the Asia Pacific region accounts for more than 40% of global business travel spending.
Suzanne Neufang, CEO of the Global Business Travel Association, told CNBC’s Monica Pitrelli that business travel globally has still not fully recovered to pre-pandemic levels, even though the cost of travel remains high.
While geopolitical or economic “wobbles” are inevitable, Singapore’s tourism strategy still has “a decade and a half to go,” Ow said.
Singapore’sTourism 2040″ Strategy The target is to increase tourism income to 47 to 50 billion Singapore dollars by 2040.
A record 70 million passengers will pass through Singapore’s Changi Airport in 2025.
uncertain future plans
“Uncertainty is not the travel industry’s friend,” Neufang told CNBC. However, meetings and conferences are one of the most resilient sectors of the travel industry, he said.
South Korean boyband BTS’s planned four-night stay in Singapore in December is also expected to support tourism demand. Ou said Singapore’s calendar remains “very flexible” despite flight disruptions linked to tensions in the Middle East.
Singapore also announced a three-year partnership with South Korean drama production company Mister Romance. The first collaboration, “Bye King” is being filmed in Singapore and stars South Korean actors Ju Ji-hoon and Lee Joon-ho.
Grace Fu, Singapore’s minister in charge of trade relations, said at the event that the government will make a new investment of S$740 million in the Tourism Development Fund over the next five years, up from the S$300 million announced in 2024.
one more 5 million Singapore dollars Fu said tourism businesses would be set aside under a separate fund to help them expand into new markets and reduce the financial risks of expansion.
Singapore also wants to attract more cruise tourists as disruptions in Middle East airspace and volatile jet fuel prices continue to impact air travel.
Disney Adventure, the largest ship in Disney’s cruise fleet and the company’s first ship based outside the US, began operations from Singapore on March 3.
Singapore is also preparing to open a new cruise and ferry terminal on July 15. The site will feature a VIP lounge and an automated baggage handling system as the country looks to expand a cruise sector that recorded 375 ship calls and more than 2 million passengers in 2025.
Nevertheless, Ou said Singapore remains focused on its long-term tourism ambitions.
“The current times are extremely uncertain and very volatile,” he said. “We’re choosing to be more conservative in terms of what we’re expecting the year to be like.”
— CNBC’s Monica Pitrelli contributed to this report.
