Singapore Tourism Hits 16.9M Visitors, Eyes 2026 Growth Target
Singapore tourism receipts hit record SG$23.9B in 2025 with 16.9M arrivals. Constrained hotel supply and infrastructure investments position hospitality REITs for stronger 2026 performance.
Singapore is on track to meet the Singapore Tourism Board's (STB) 2026 target of 17 to 18 million international visitors, setting the stage for improved performance across hospitality stocks and tourism-related investments. The forecast comes after the city-state recorded 16.9 million arrivals in 2025, representing 2.3% year-on-year growth and 88.5% recovery to pre-Covid 2019 levels.
Tourism receipts reached a record SG$23.9 billion (~US$17.7 billion) in the first three quarters of 2025, up 6.5% from the same period in 2024. STB projects full-year 2026 receipts will climb to SG$31 billion to SG$32.5 billion (~US$23 billion to US$24.1 billion), exceeding 2025's forecast range of SG$29 billion to SG$30.5 billion.
Hotel Supply Constraints Support Room Rates
Limited hotel supply growth is creating favorable conditions for hospitality real estate investment trusts (REITs) and hotel operators. Room supply is projected to expand by only 1.3% annually from 2025 to 2029, significantly below the pre-pandemic average of 4.6% from 2015 to 2019.
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Average hotel occupancy increased to 81.9% in 2025 from 81.4% in 2024, demonstrating stable performance despite industry-wide softness that impacted Singapore-listed REITs with hotel exposure throughout the year. Both OUE REIT and CapitaLand Ascott Trust are guiding for firmer FY2026 performance, positioning to benefit from the constrained supply environment and increased tourist spending.
Major infrastructure investments are reinforcing Singapore's tourism capacity. Marina Bay Sands is investing SG$8 billion (~US$5.9 billion) in expansion projects, while the Marina Bay Cruise Center has increased passenger capacity to 11,700. A strong pipeline of meetings, conferences, and entertainment events, including Formula One Grand Prix and BTS concerts, is expected to drive visitor growth.
Aviation Sector Positioned for Multi-Year Growth
OCBC Group Research favors upstream aviation players amid a multi-year maintenance, repair, and overhaul (MRO) upcycle. Global aircraft order backlogs have surpassed 17,000 units, with normalization unlikely before 2031 to 2034. As older planes remain in service longer due to delivery delays, increased maintenance needs will benefit MRO operators.
"At current levels, we are starting to see value emerge in SIA Engineering's shares," said Ada Lim, Equity Research Analyst at OCBC. The company signed two agreements at the Singapore Airshow, one with the Singapore Economic Development Board to develop a training academy for engine maintenance, and another with Singapore Polytechnic to align curriculum with real-world MRO requirements.
China Aviation Oil (CAO) gained 8.4% year-to-date, supported by China's ongoing outbound travel recovery. China remains Singapore's top source market with 3.1 million visitors, followed by Indonesia (2.4 million), Malaysia (1.3 million), Australia (1.3 million), and India (1.2 million).
Quality Over Volume Strategy Shows Results
Singapore's approach emphasizes higher-spending visitors and quality experiences over volume, aligning with its Tourism 2040 roadmap that targets SG$47 billion to SG$50 billion (~US$34.9 billion to US$37.1 billion) in tourism receipts by 2040. This strategy has shown results, with 2025 tourism receipts on track to surpass pre-Covid levels despite lower arrival numbers, demonstrating increased per-visitor spending.
"We expect Singapore to meet this quite easily, supported by a steady pipeline of meetings, incentives, conferences and exhibitions events and concerts," Lim said regarding 2026 tourism targets.
OCBC Group Research also expects retail sales expansion of 2% to 3% year-on-year in 2026, supported by new products, experiences, and a favorable economic environment benefiting hospitality-adjacent sectors.
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