Adding to the bitter news is a warning by the new tourism chief of another difficult year ahead for the industry.

Some 10.1 million foreigners visited the Republic in the last 12 months, spending a record $14.8 billion here.

Not only did Singapore fail to meet its target for visitor arrivals, but it also fared worse than 2007's record of 10.3 million tourists.

Tourism receipts, however, grew 5 per cent over the previous year's (07) takings boosted partly by the fact that hotel room rates continued to go up.

Still, the final figures fell short of the previously announced targets for last year (08). The aim was to hit 10.8 million visitors who spend a total of $15.5 billion.

Yesterday, (jan 10), Singapore Tourism Board chief Aw Kah Peng said the performance of the sector last year (08) was 'credible and robust' given the 'dramatic turn' in the world economy in the second half of the year.

She added that as a country with a small population with little room for domestic tourism, the sector held up 'rather well'.

In her first official appearance as the new chief of STB at the annual Asean Tourism Forum held in Hanoi this year (09), Ms Aw said the energy and passion of the industry members will stand them in good stead to ride out the downturn.

She took over the reins from former tourism chief Lim Neo Chian on Jan 1.

Although the world financial crisis was cited by STB as the reason for the fall in numbers, industry watchers pointed that the drop came as early as June - months before the financial crisis.

An inbound travel agent who declined to be named said: 'We have priced ourselves too high and offer too little value for most holiday-makers.'

Read the full story in tomorrow's edition of The Sunday Times.