S’pore to pump $740m into tourism; raked in record tourism spending of $32.8b in 2025

SINGAPORE – Tourism projects will get a $740 million injection over the next five years, said Minister-in-charge of Trade Relations Grace Fu, who also revealed on May 8 that Singapore’s tourism receipts climbed to an all-time high of $32.8 billion in 2025.

Tourism spending not only surpassed the Singapore Tourism Board’s (STB) forecast of $29 billion to $30.5 billion for 2025, but also registered a 10 per cent year-on-year bump from 2024 figures. 

International visitor arrivals came in at 16.9 million in 2025, said Ms Fu at the Tourism Industry Conference 2026 in the Resorts World Convention Centre. The figure was 16.5 million arrivals in 2024.

STB projects international visitor arrivals in 2026 will reach between 17 million and 18 million, with tourism spending hitting $31 billion to $32.5 billion.

But with headwinds such as the ongoing Middle East energy crisis and its knock-on effects on consumer spending, the Government is stepping in with a new round of funding worth $740 million, said Ms Fu, who is also Minister for Sustainability and the Environment.

This is more than double the $300 million pumped into the Tourism Development Fund in 2024. 

The new funding will support Singapore’s ambitions under Tourism 2040, charting the next chapter of growth and ensuring that the Republic remains a compelling destination, said Ms Fu.

Under Tourism 2040, Singapore aims to reach between $47 billion and $50 billion in tourism spending by 2040. 

In the immediate term, and drawing on the enlarged Tourism Development Fund, $5 million is being pumped into the Business Events in Singapore grant to help businesses defray marketing costs aimed at boosting attendance of business events in Singapore.

A new $5 million Market Access Fund is also being introduced to help businesses grow their presence in new markets, such as secondary cities or new countries, by reducing the financial risks of expansion as they diversify.

The existing Hotel Rejuvenation Fund, which supports hotels’ renovation and refurbishment efforts, will be extended by a year.

Projects under the Kickstart Fund, which supports innovative products or experiences that can be scaled, will get up to $1 million to pilot products that attract high-value visitors, up from the previous cap of $250,000.

To sustain and drive visitor demand during this period, STB is expanding over 20 key trade partnerships on Singapore’s top 10 source markets, with more than $20 million in total investments from STB and in-market partners.

STB chief executive Melissa Ow, who spoke at the conference, cautioned that demand is expected to be muted in the coming months as tourism businesses come under strain and global uncertainty persists.

“But as during SARS and Covid-19, I am confident that our solidarity and adaptability will carry us through,” she said, addressing around 650 tourism professionals, industry partners and stakeholders.

Speaking to the media on the sidelines of the event, Ms Ow said 2025 was “an exceptional year for the tourism industry”, but noted that projected tourism receipts for 2026 are lower.

Given the highly uncertain and volatile climate, she said STB is choosing to be more conservative in its forecast.

As for the outsized injection into the Tourism Development Fund, Ms Ow said: “The size of the fund is a reflection of the size of STB’s ambitions as we go into the next five to 10 years.”

A slew of infrastructural developments

These ambitions include a slew of long-term infrastructural developments, as well as consolidated plans for the revival of Orchard Road and the development of Greater Sentosa, outlined by Ms Fu on May 8.

She said the fund is aimed at elevating Singapore’s position as a vital and trusted hub, a world-class city and home, as well as a home for resilient businesses with strong human capital. 

The authorities are assessing the feasibility of locating a new integrated cruise and ferry terminal at Straits View near Marina South, next to the Marina Bay Cruise Centre Singapore (MBCCS), said Ms Fu. It is expected to come with a passenger capacity 1.5 times that of MBCCS and twice that of the existing HarbourFront Passenger Terminal.

A downtown MICE (meetings, incentives, conventions and exhibitions) hub, announced in 2025, will also be located in the area. It will house facilities for business events, alongside accommodation, dining, retail, entertainment and attractions.

Under the Greater Sentosa Master Plan, the next two decades will see Pulau Brani developed into a world-class tourism destination with hotels, attractions and experiences.

Sentosa’s beachfronts will be rejuvenated with more event spaces and a larger number of green walking trails, coastal trails and waterfront promenades.

Updates to Orchard Road’s multi-year rejuvenation plan, announced in 2019, include ready-to-use pop-up spaces along the pedestrian mall by the end of 2026, which will serve as a test bed for retail concepts.

A mixed-use development will be built on the site of the former Tanglin Shopping Centre, while the site of four heritage bungalows in Seton Close in the Tanglin precinct has been set aside for a hotel.

Growing demand in new and existing markets

Of the 16.9 million international visitors that Singapore received in 2025, those from mainland China, Indonesia and Australia were the top spenders, while long-haul markets such as Germany, the UK and the US recorded double-digit year-on-year growth. 

Market diversification is now a priority, said STB’s Ms Ow, who announced that Singapore is establishing new flight connections to Palembang and Belitung in Indonesia; western Sydney, Newcastle and Sunshine Coast in Australia; and Dalian in China.

As the 2027 ASEAN chair, Singapore is set to host over 250 meetings of varying scales, kicking off with the ASEAN Tourism Forum in January 2027 to promote tourism growth in the region and facilitate conversations on cruise tourism, sustainable tourism and digitalisation.

“Strengthening regional partnerships and connecting to new audiences will expand the breadth and depth of our visitor base”, which are opportunities to promote and increase travel within ASEAN, Ms Ow added.

Future-ready tourism sector

To ensure that the sector remains innovative and ready for the future, STB has developed an artificial intelligence (AI) playbook for the tourism industry.

This will help businesses speed up AI adoption by understanding where and how to apply AI to improve operations and the visitor experience, Ms Ow said.

Through its Tourism Technology Transformation, or Tcube programme, STB will also facilitate wider-scale adoption of technological solutions such as data analytics customised for tourism businesses.