Even with the Formula One race, visitors totalled 739,000 last month, down 4.1 per cent from a year ago, said the Singapore Tourism Board (STB) in a statement on Thursday.

Travellers from Indonesia, Australia, China, India and Japan accounted for 52 per cent of the arrivals.

Arrivals fell 4.1 per cent in June, 3.8 percent in July and 7.7 per cent in August.

The STB said the decline in arrivals reflects the global economic slowdown, while the gloomy outlook for the tourism sector is likely to continue into next year.

'With the current global economic climate, there is now a general air of uncertainty which has impacted consumer sentiments and discretionary spending.

Visitor arrivals and tourism receipts are expected to fall short of the 2008 targets,' it said.

Singapore has aimed to attract 10.8 million visitors and earn tourism revenues of S$15.5 billion this year.

The decline came even after Singapore hosted an estimated 40,000 foreign visitors for Formula One's first ever night race on Sept 28.

September also saw the lowest monthly tourist arrivals since January.

Visitor days, however, was up 6.2 per cent compared to last September.

Hotel room revenue also went up 26.3 per cent to $186 million this year. But average occupancy rate dropped 11.6 per cent compared to last year.