The Singapore Tourism Board's (STB) monthly report stated that 760,000 travellers visited the country last month, a 9.7 per cent drop over the same time last year. It marked the single biggest monthly dip since arrivals started falling in June. Last year, the island had welcomed a record 10.3 million visitors.

Anticipating a dismal end-of-year turnout, STB had warned in July that Singapore would fall short of its target of 10.8 million visitors this year.

Going by recent figures, tourist arrivals should barely exceed the 10 million mark this year.

In the first 11 months of the year, an estimated 9,172,000 tourists visited Singapore. If the Christmas season yielded as many arrivals as last year's 947,000, the entire year's total would be only slightly above the 10 million mark (10,119,000).

Even this conjecture is optimistic, said Mr Robert Khoo, chief executive of the National Association of Travel Agents Singapore (Natas).

'There is no chance that arrivals this December will be more than arrivals last December,' said Mr Khoo. 'The economy was much better last year, and more people were willing to spend on travel.'

In a media release, STB blamed the global economic downturn for the tourism slowdown, saying it has dampened consumer sentiment and cut into discretionary spending.

Singapore is not the only country in the region feeling the blues. Tourist numbers to neighbouring Malaysia, for example, are expected to fall by 9 per cent next year.

The decline in travellers last month was especially pronounced from Singapore's top tourist markets, Indonesia, China, India and Japan. There was a 45 per cent drop in tourists from South Korea, which has been affected badly by the poor global economy, compared to the same month last year.

But four countries - Vietnam, Malaysia, the Philippines and Germany - bucked the trend, as more of their citizens came here than last year.

Behind this could be isolated drivers of growth like an increasingly wealthy middle class, said industry experts.

According to STB, tourism spending this year will also fail to meet the target of $15.5 billion.

An early herald of the shortfall was last month's drop in estimated hotel revenue by 6 per cent compared to the same time last year, totalling $161 million in room revenue. Average room rates increased about 3.4 per cent from the same time last year, to reach just over $230 a night. But the average occupancy rate dropped about 8 percentage points to 80 per cent.

Hotels have been prompted to slash their rates recently, some by as much as 30 per cent.

Companies in the tourism industry such as travel agencies and retail outlets should monitor upcoming travel trends closely and be aware of consumer preferences next year, said STB planning director Ong Huey Hong.

'With the global economic situation continuing to impact consumer spending, visitors are likely to be more price-sensitive, so businesses should focus on providing value-for-money tourism offerings,' said Ms Ong, who added that the government agency would be working closely with regional and local industry players to help stimulate in-bound travel.

She also reminded companies to think long-term, invest in capabilities and improve their service levels, facilities and products in order to take advantage of growth opportunities once the economic slowdown comes to an end.

In the meantime, industry players are pulling out all stops to keep their overseas customers.

The seven-outlet strong chain of Aspara Spas - located in Fullerton and Goodwood Park hotels - is offering more promotions and upping marketing efforts overseas.

Said owner Peter Sng: 'Tourists make up about 40 per cent of our customers, so we are working extra hard to keep on top of things and continue to attract this segment.'

limjess@sph.com.sg