SINGAPORE: In 1992, Singapore’s key attractions were its upscale malls, vibrant nightlife, and the renowned Singapore Zoo. Over the decades, however, the city’s tourism landscape has shifted dramatically. According to an article published by CNBC, with rising costs in both retail and nightlife, Singapore is repositioning itself to cater to a broader spectrum of travellers. While the glitzy malls and clubbing scene still draw a crowd, the city is now focused on world-class attractions, MICE (meetings, incentives, conventions, and exhibitions) events, and experiential travel.
The impact of rising costs on tourism
Over the years, shopping in Singapore has taken a backseat as inflationary pressures have increased both the cost of goods and commercial rents in the city. As space becomes scarcer and more expensive, the retail industry has faced setbacks. Singapore’s once-booming club scene has also been hit hard, with changing alcohol consumption habits and high operational costs squeezing the nightlife industry.
“Singapore built itself a brilliant position as accessible Southeast Asia in the ‘80s and ‘90s. But many other cities in the region have now upped their game too,” said Tony Cross, a financial consultant who has visited the country over 20 times. Despite these challenges, Singapore’s tourist arrivals surged by 21% in 2024, attracting 16.5 million international visitors. However, the figure still falls short of the pre-pandemic peak of 19.1 million in 2019.
New attractions and a shift towards experiential travel
In response to growing competition from more affordable Southeast Asian destinations, Singapore is doubling down on world-class experiences that appeal to both budget-conscious and luxury travellers alike. Iconic landmarks like Marina Bay Sands, Gardens by the Bay, and the Mandai Wildlife Reserve have become mainstays. In addition, the city’s robust calendar of major events—including the annual Formula 1-night race and concerts by stars like Lady Gaga and Taylor Swift—helps maintain its allure as a premier global destination.
“The shift towards experiential travel has become central to our tourism strategy,” said a spokesperson for the Singapore Tourism Board (STB). As the city-state continues to expand its portfolio of attractions, it aims to provide a range of experiences that cater to diverse visitor interests. New developments such as Rainforest Wild Asia, a recent park addition, and the Disney Adventure cruise set to launch in December are expected to further drive tourism growth.
The competition heats up in Southeast Asia
Despite these efforts, Singapore faces intensifying competition from neighbouring countries. Lower costs in cities like Kuala Lumpur and Bangkok make them increasingly attractive to business and leisure travellers. For instance, the cost of renting quality convention space in Kuala Lumpur is roughly half that of Singapore, and dining and entertainment options are significantly more affordable in other Southeast Asian capitals.
Albert Lee, a Malaysian event organiser, highlighted the rising competition, noting that Singapore’s iconic venues are now competing with more affordable options in nearby cities. While Singapore remains a top location for MICE events, countries like Thailand and Malaysia are improving their infrastructure and tourism offerings, posing a challenge to Lion City’s dominance in this sector.
Finding value in Singapore’s unique offerings
Despite the increasing costs, many visitors still find value in the experience that Singapore offers. Regular visitors like Japanese businessman Yoshihiko Tano appreciate the city’s affordable hawker centres, where meals and drinks can be enjoyed for less than S$10. Additionally, Singapore’s efficient public transport system allows tourists to maximise their time and explore the city at their own pace.
For many, the city-state remains an aspirational destination. Nazia Tanzeem, an Indian expatriate, explained that Singapore’s image as a sought-after destination was solidified by iconic cultural references, such as the 1960 Hindi song “Dekhoji Dekho Singapore”, which continues to inspire Indian travellers. Even as competition rises, Singapore’s ability to blend affordability, world-class attractions, and a unique cultural identity ensures it remains a key player in the region’s tourism market.
As Singapore adapts to shifting tourism dynamics, it will need to innovate continuously, balancing affordability with its premium offerings to stay competitive in an increasingly crowded market.