Singapore Forecasts Decline in Tourism Spending Due to Global Conflicts
The ongoing conflict in the Middle East is beginning to impact the global tourism sector, with Singapore, a country that generates high revenue from tourism, projecting a slowdown in tourist spending in 2026. Although the number of tourists is expected to increase, the comparison of tourist spending is projected to be slightly lower than last year.
As reported by Kompas.com from VN Express on Sunday (17/5/2026), the conflict in the Middle East has led to a decline in consumer and business confidence in tourism.
According to projections from the Singapore Tourism Board (STB), revenue from the tourism sector this year is expected to be in the range of 31 billion to 32.5 billion Singapore dollars, slightly lower than the record of 32.8 billion Singapore dollars in 2025.
However, the number of international tourist arrivals is predicted to increase to 17 to 18 million people, from 16.9 million in the previous year.
The Chief Executive of STB, Melissa Ow, stated that tourism demand is expected to slow down in the coming months.
This aligns with the Singaporean government’s warning about the impact of global uncertainty, including the energy crisis in the Middle East, which could affect tourist spending.
On the other hand, disruptions to flight routes are also beginning to be felt. Singapore Airlines has even extended the cancellation of flights on the Singapore-Dubai route until August 2026 due to the unstable geopolitical situation.
This condition is also affecting the travel patterns of international tourists. However, Singapore remains optimistic about the long-term prospects of the tourism sector.
The government has allocated 740 million Singapore dollars to strengthen this industry over the next five years, a significant increase compared to previous allocations.
In addition, Singapore is also starting to shift its focus to the cruise tourism sector as an alternative. The presence of the Disney Adventure cruise ship, which began operating from Singapore in March 2026, is one of the efforts to attract more tourists.
The government is also preparing to open a new cruise and ferry terminal in July 2026 to support the growth of this sector.
In line with the decline in shopping tourism in Singapore, a report written by CNA on Monday (11/5/2026) explained that changes in travel patterns are forcing some players in the tourism industry to adapt quickly.
Several countries such as Indonesia, Malaysia, and Thailand, which previously relied on long-distance tourists from Europe and the Middle East, are now focusing on regional markets such as Southeast Asia, China, India, and Japan.