View from the rooftop pool at Marina Bay Sands Resort Hotel. Enjoy panoramic views of Singapore’s financial district skyline.
Anthony Wallace | AFP | Getty Images
Singapore, long seen as a bellwether for the global economy, expects tourism spending to slow this year, despite expectations for further growth in visitors, reflecting concerns that the Middle East conflict could weigh on consumer and business spending.
The Singapore Tourism Board predicts tourism receipts will be S$31 billion and S$32.5 billion ($24 billion to $25.6 billion) in 2026, compared to last year’s record of S$32.8 billion. International arrivals are expected to increase from 16.9 million in 2025 to 17 million to 18 million this year.
The city-state is a regional hub for business travel and flights, and has hosted major events such as the Formula 1 Singapore Grand Prix and concerts from big stars such as Taylor Swift, Coldplay and Blackpink. According to the Singapore Tourism Board, tourism accounted for 6% of Singapore’s services exports in 2024.
Singapore Tourism Board CEO Melissa Ow said at Singapore’s annual industry conference that tourism spending is expected to slow due to “weak demand in the coming months” despite a 3% year-on-year increase in visitor numbers in the first quarter.
The Singapore Tourism Authority’s warning reflects broader concerns across the business travel industry. The Global Business Travel Association said geopolitical tensions and rising fuel costs were causing instability across the international travel market, despite Asia remaining relatively resilient.
According to the Global Business Travel Association, Asia Pacific accounts for more than 40% of global business travel spending.
Suzanne Neufan, CEO of the Global Business Travel Association, told CNBC’s Monica Pitrelli that global business travel has not yet fully recovered to pre-pandemic levels, even though travel costs are still rising.
Although some geopolitical or economic “wobbles” are inevitable, Singapore still has “15 years left” in its tourism strategy, Mr Ow said.
Singapore’s Tourism 2040 strategy aims to increase tourism receipts from S$47 billion to S$50 billion by 2040.
In 2025, 70 million passengers passed through Singapore’s Changi Airport.
Planning for an uncertain future
“Uncertainty is not the travel industry’s friend,” Newfan told CNBC. However, meetings and conferences remain the most resilient sector of the travel industry, she added.
South Korean boy band BTS’ planned four-night stay in Singapore in December is also expected to support tourism demand. Mr Ow said Singapore’s calendar remained “very resilient” despite flight disruptions related to tensions in the Middle East.
Singapore also announced a three-year partnership with Korean drama production company Mr. Romance. The first collaboration, “Buy King,” is being filmed in Singapore and stars South Korean actors Ju Ji-hoon and Lee Jun-ho.
Singapore’s Minister for Trade Relations Grace Fu said at the event that the government will inject an additional S$740 million into the Tourism Development Fund over the next five years, on top of the more than S$300 million announced for 2024.
Mr Foo said an additional S$5 million will be set aside in a separate fund to help tourism businesses expand into new markets and reduce the financial risks associated with expansion.
Singapore is also aiming to attract more cruise tourists, as disruption in Middle East airspace and volatile jet fuel prices weigh on air travel.
Disney Adventure, the largest ship in Disney’s cruise fleet and the company’s first ship based outside the United States, began sailing from Singapore on March 3.
Singapore is also preparing to open a new cruise and ferry terminal on July 15th. The location will feature a VIP lounge and automated baggage handling system as the country aims to expand its cruise sector, which recorded 375 port calls and more than 2 million passengers in 2025.
Still, Mr Ow said Singapore remained focused on its long-term tourism ambitions.
“The current situation is very uncertain and very volatile,” she said. “We are choosing to be more conservative in terms of predicting what this year will look like.”
—CNBC’s Monica Pitrelli contributed to this report.
