• In 1Q 2018, China, India and Indonesia were Singapore’s top 3 visitor-generating markets, accounting for about 43% of total international visitor arrival. These 3 countries were also the top 3 generating markets in tourist spending.
  • SGX lists multiple stocks with exposure to Singapore’s tourism industry and a market capitalisation of more than S$100M. The 10 largest stocks by market capitalisation averaged 3 year annualised return of 7.6% and total market cap of S$78.5 billion.
  • Mapletree Commercial Trust led the 3 year annualised total returns (15.4%) of the 10 stocks. Outside the 10 largest tourism stocks similar performances were made by Ascendas Hosp. Trust (17.3%), Cortina (17.3%), Wheelock Properties (16.2%), and Mandarin Oriental (15.0%).

Consumer Spending Fueled by Record High Tourism Arrivals

In the first half of 2018, Singapore’s visitor arrivals increased 7.4% Year-on-Year to 10.9 million, while in 1Q 2018, tourism receipts increased 4.7% Year-on-Year to S$6.7 billion. Hotel room lettings also hit new record highs at 1.67m or +6.8% Year-on-Year in July 2018 while average hotel occupancy rates improved to 92.4% or +1.4% YoY.

China, Indonesia and India were the top 3 visitor-generating countries, accounting for 43% of total international visitor arrivals, according to Singapore Tourism Board (STB). These 3 countries were also the top 3 generating markets in tourist spending, contributing c.39% of total tourism receipts (ex. Sightseeing, Entertainment & Gaming).

A breakdown of tourist receipts by major components showed that Chinese tourists spent most on shopping (51%), while Indian and American tourist spent most on accommodation (39% and 36%), click here to read more.

Chinese Tourists – A Key Focus for Singapore’s Tourism Industry

In 1Q 2018 alone, there were 0.9 million Chinese tourist arrivals and collectively spent S$1.0 billion (ex. Sightseeing, Entertainment & Gaming). Chinese tourists make up one of largest contributors to Singapore’s total tourism receipts (19% Ex. Sightseeing, Entertainment & Gaming), making it a key market for Singapore’s tourism industry.

Chinese consumers increasing influence in ASEAN’s tourism industry can be seen by the rise in consumer services such as Alipay, a Chinese-centric mobile and online payment platform, which has quickly dominated overseas spending. Singapore is ranked 7th among the list of 10 countries by Alipay transaction volume, with an average spending per user of S$352.35.

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SGX’s Cluster of Tourism Plays

SGX lists multiple stocks with exposure to Singapore’s tourism industry and a market capitalization of more than S$100 million. Among the group, there are property developers and/or hotel operators, Singapore-focused REITS & Trusts, luxury retailers, transportation, gaming, food and beverage retailers and travel agents.

Tabled below are largest 10 stocks by market capitalisation amongst the wide list of stocks with tourism exposures, sorted by highest market capitalisation.

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As tabled above, Mapletree Commercial Trust led the 3 year annualised total returns (15.4%) of the 10 stocks. Outside the 10 largest tourism stocks similar performances were made by Ascendas Hosp. Trust (17.3%), Cortina (17.3%), Wheelock Properties (16.2%), and Mandarin Oriental (15.0%).Tabled below are more details of these stocks, sorted by market capitalisation.

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Did You Know?

A recent study by ride-hailing company, Grab, shows that tourist passengers trips to hospitals and medical centres have increase 500%. South East Asian tourist made up 63% of all Grab’s tourist passengers. Data from medical tourism index also shown that Singapore ranked top among seven Asian countries for patient experience. SGX lists 38 healthcare companies, which includes 2 REITs (First REIT and Parkwaylife REIT) and 1 business trust (RHT Health Trust).