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Singapore Braces for Tourism Spending Decline Despite Rising Visitor Forecast

Singapore projects visitor arrivals will climb to between 17 million and 18 million in 2026, yet tourism spending is expected to soften. The city-state's Tourism Board forecasts receipts of 31 billion to 32.5 billion Singapore dollars, down from a 2024 record of 32 billion. Middle East tensions and elevated fuel costs are dampening demand outlook, according to Tourism Board leadership. First-quarter arrivals rose 3% year-over-year, but sector officials warn of softening spending ahead. Tourism contributes 6% of Singapore's services exports. The outlook reflects broader caution across international travel markets. Asia Pacific accounts for more than 40% of global business travel spending. However, geopolitical instability and higher fuel expenses are creating headwinds. Singapore serves as a regional business travel hub and airline stopover point, hosting major events including the Formula One Grand Prix.