Of the top 10 outbound leisure countries only Indonesia reported double digit growth gaining 10.8 percent, while Japan saw a significant 18.4 percent drop over last year.
SINGAPORE – According to GfK’s TravelScan data ending May 2016, the Singapore outbound travel market in first five months this year saw a negative 1.3 percent when compared with the same period last year.
China continues to remain as top destination for Singapore outbound travellers, its growth trajectory have slow down to just 1.3 percent and Thailand stayed runner up. Of the top 10 outbound leisure countries only Indonesia reported double digit growth gaining 10.8 percent, while Japan saw a significant 18.4 percent drop over last year. “Despite the continued efforts in marketing Japan as the destination, the recent earthquake have taken toll on the travellers going to there.” Highlighted by Anthony Tan, APAC Lead for Travel and Hospitality.
Within the developed markets, Australia saw a modest growth of 1.2 percent due to currency exchange effects against the Singapore dollar which continue to make the country more attractive in terms of spending power for Singapore travellers. Meanwhile, with the Singapore dollar rising against the Korean won a positive effect was seen on the traveller numbers heading to South Korea with growth of 16 percent over the same period.
While Southeast Asia remains the most travelled region for Singapore travellers. Traditional beach holidays destinations like Phuket, Bali and Langkawi are again gaining popularity vs further destinations. Shorter travel bookings time are also seen as more travellers are undecided on holidays in anticipation of a weaker economy.
Outlook based on forward travel leisure bookings for the next six months of 2016 (June – December) saw a negative 0.2 percent compared to 2015 same period. The first quarter of 2016 saw growth of 6 percent fizzes out. Japan high growth of 68 percent in first quarter have turned into a negative 5.2 percent.
Malaysia also bookings turning in a negative 12.4 percent, this could be due to the recent terrorist alerts and reports, observed by Tan.
Overall, the sentiments for outbound leisure travel bookings in the first five months of 2016 have deteriorated. With the weakening economy and uncertainty in the financial markets plus rising redundancy in the job markets. Travellers will look to cut back on discretionary expenditure like holidays or non-essential products and services, thus slowing down the growth experienced in the 1st quarter of the year. The outbound market will likely continue see strong headwinds in the coming months as leisure holidays are put on hold.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
