The number of visitors fell 7.7 per cent compared with a year earlier, to 842,000, according to Singapore Tourism Board's latest statistics released on Tuesday.

The only consolation is that they are staying longer. Visitor days increased 3.8 per cent to 3.7 million days.

Nine out of the top 15 visitor-generating markets also saw numbers dipping from a year ago. China and Malaysia dropped 21 per cent each, the biggest decline among the countries.

The only markets that went up were Germany, by 8 per cent to 15,000, followed by Australia (up 5 per cent to 65,000), Vietnam (by 4 per cent to 25,000), India (up 3 per cent to 58,000) and the Philippines (1 per cent to 35,000).

Hotel revenue is estimated to go up by 3.6 per cent to hit $165 million. But average room occupancy was down 9.5 percentage points to 81 per cent. The average room rate for last month was $232, up 14.9 per cent from the previous year.

STB said, 'The decline in visitor arrivals in Aug, Jul and Jun reflects the current challenging global economic environment and outlook for the tourism sector, which may continue into 2009.'

Although it has expressed concerns in meeting the 10.8 million visitor arrival target for this year, it is trying to strengthen efforts to increase tourism spend to hit the target of $15.5 billion receipts.

Along with the weekend Grand Prix, Singapore is trying to boost its appeal by building new attractions including two casino developments which are expected to open by 2010.

It is also trying to become an arts and entertainment centre, and will host the inaugural Youth Olympics in 2010.