Singapore raised its 2025 economic growth forecast after a strong revival in tourism and rising hotel demand helped power a better-than-expected third quarter, with international visitor arrivals and tourism receipts now close to or above pre-pandemic levels, the Ministry of Trade and Industry (MTI) said.
Tourism, which contributes about 6 percent of Singapore’s services exports, continued its robust rebound this year. Tourism receipts climbed 5.3 percent year-on-year to SGD15.7 billion ($12.1 billion) in the first half of 2025, following a full-year total of SGD29.8 billion ($22.9 billion) in 2024—7.6 percent above 2019 levels.
Spending on food and beverage, entertainment, gaming and accommodation all grew strongly, supported by a packed calendar of concerts and major events.
International visitor arrivals reached 12.9 million in the first nine months of 2025, up 2.3 percent year-on-year, recovering to nearly 90 percent of 2019 levels. Growth was driven by key markets including Australia, India, mainland China and Malaysia.
The accommodation sector expanded 4.9 percent in the third quarter as hotel lettings rose across segments, led by luxury properties, while air travel through Changi Airport continued to increase.
Singapore is home to two integrated resorts: Marina Bay Sands (MBS) and Resorts World Sentosa (RWS), the only licensed casinos in the country, forming a controlled duopoly.
The tourism momentum helped lift overall GDP by 4.2 percent in the third quarter, prompting the government to upgrade its 2025 growth forecast from 1.5–2.5 percent to ‘around 4 percent’. Quarter-on-quarter, the economy expanded 2.4 percent.
Manufacturing remained the other major driver, with the electronics cluster boosted by strong global demand for AI-related semiconductors, servers and components. Biomedical manufacturing, wholesale trade and finance also posted firm growth as global and regional activity stayed resilient.
The MTI noted that the recovery in tourism mirrored broader regional trends, with Asia-Pacific arrivals reaching about 90 percent of 2019 levels in 2024. Singapore has maintained a roughly 6 percent share of visitor flows among major regional destinations.
The ministry cautioned, however, that global uncertainty, a strong Singapore dollar and intensified competition from visa-liberalizing destinations could weigh on visitor numbers in the near term.
For 2025, the Singapore Tourism Board projects between 17 million and 18.5 million arrivals and tourism receipts of SGD29–30.5 billion ($22.3–23.5 billion).
Looking ahead to 2026, MTI expects GDP growth to ease to 1–3 percent as tariff pressures in major economies become more pronounced and export momentum softens.
Tourism remains a long-term bright spot, with Singapore’s “Tourism 2040” roadmap targeting up to SGD50 billion ($38.5 billion) in annual tourism receipts by enhancing major events, lifestyle offerings and business travel.
