The best international airport, the second largest seaport, the cleanest metropolis, some of the most famous luxury hotels, the second largest ferris wheel in the world – Singapore is a metropolis of superlatives.
The good reputation of the Lion City, as it is translated in English, attracts tourists from all over the world magically. Singapore is the smallest state in Southeast Asia – even smaller than Hamburg, the second largest city in Germany. Regarding tourism, Singapore is a heavyweight: the city is one of the ten most visited cities in the world said Mr. Anthony Tan, APAC Lead, Retail ad hoc. Singapore remains a great attraction for the German tourist. Almost everyone on a trip to Southeast Asia or Australia would at least have a multi-day stopover in Singapore to explore the Asian city.
Southeast Asia better than the German market as a whole
Although the consumer climate in Germany and the willingness to buy in Germany could hardly be better, holiday business in the recent tourism year 2015/16 is declining – in terms of sales by 5.6 per cent. The reason for this is the weakness in demand for Turkey, which has lost almost half of its sales by German tourists. For the long-distance trips a differentiated picture is shown: While the Caribbean is experiencing decent growth, Southeast Asia is declining by 4.8 per cent, but still slightly better than the market as a whole. The decline for Singapore is higher in the German package travel business. However, its fundamental importance has not changed much. Vacations in Southeast Asia represent 3.2 per cent of total sales in the German market. Singapore thereof represents a revenue share of 6.3 per cent (touristic year 2014/15: 6.8 percent).
Many holidaymakers from South and East Germany
“Singapore is considered to be one of the most expensive cities in the world, but this hardly frightens German holidaymakers” says Ms. Doerte Nordbeck, Head of Travel & Logistics, Germany. Expensive holiday trips are a growth segment within Germany. What is currently losing is the comparatively cheaper mass market. Holidays in the price segment of 3,000 euros or more are 7% of sales in the total market. For holidays in Southeast Asia, the share is already rising to 12.7 per cent and for Singapore even to 18.3 per cent. For the multicultural “Switzerland of Asia”, the traveler from Germany seems to spend comparatively more. The price level of spends on site may be higher in Singapore than in other Southeast Asian countries, but it can stand comparison with Europe. “Measured against the Big Mac Index, an indicator that simplifies the purchasing power internationally, the costs in Singapore are even slightly lower than in Germany” mentioned Ms. Nordbeck. Also interesting in this context: The majority of Singapore vacationers from Germany come from the comparatively prosperous Baden-Wuerttemberg (23.2 per cent), but is followed by the clearly financially weaker federal states in Eastern Germany (21 per cent). This underlines: Price is not the bar. Especially couples, who are particularly willing to spend on holidays, are attracted to Singapore. They represent a sales share of 74.8 percent.
Singapore is booked earlier in the year
The fact that holidaymakers travel 10,000 kilometers or more as the crow to reach their destination speaks for Asia fascinating Germans. Most popular destination in Southeast Asia is, measured in sales, Thailand followed by Indonesia and Vietnam. Singapore is already in fourth place. The other destinations do not have any great importance in Germany: Malaysia, Myanmar, the Philippines and Cambodia do not reach as many holiday sales as Singapore alone. The strongest booking period for Singapore, usually happen at the beginning of the year shown from previous 2 years. Almost one-quarter of the total turnover is generated by German travel agencies in January and February alone.
Photo caption: Singapore
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
