Expected Tourism 2008
The Economist intelligence Unit expects that personal disposable income to grow by 6.3% a year over the forecast period. Consumer expenditure is expected to rise by around 30% between 2008 and 2012, to reach a US$106bn. Domestic economy will be the main performer with health, leisure, telecommunication and education sectors being main contributors. Also, high disposable income as Singaporeans are expected to be more affluent and brand awareness will contribute to a substantial market for retail and foreign luxury goods.
The highest growth will be seen in the health sector which is expected to be at 44% from 2008 -2012. This is explained by the trend of rising affluence of citizens who demand high healthcare services as well as the demand from the people seeking better healthcare system from the neighboring countries.
The largest consumer expenditure remains to be transport and communication followed by household items. The large number of tourist is expected to come to Singapore therefore demand for hotel services will remain strong. In the local market, leisure services will continue to grow as people are expected getting richer. However, competition is forecasted to be greater as more businesses set up to tap on the domestic market.
Retail and hotel development at the site will supply a new experience for Singaporeans and capture the demand of the domestic market. Additionally, the strategic location right opposite of Raffles Hospital will help to potentially capture the demand of families and foreign patients.
The first quarter of 2008 was encouraging with the number of tourist hitting the 2.604 million mark. The month of March marked a record high of 908,000 visitors representing a 5.7% increase year-on-year. It is expected that by 2012, the annual visitor arrivals will be running at 13.9million. The expected annual departure