International Visa Cardholders Spent Sin$800 million in Singapore in Q1 2006

Tourists to Singapore spent Sin$800 million (US$504 million) on their Visa cards from January to March 2006, an increase of 31% over the same period last year.

Visa cardholders from the United States, United Kingdom, Japan, Australia and Indonesia were the biggest Visa spenders in Singapore, collectively accounting for 54% of total Visa spend by international cardholders.

The most popular Visa spend categories were retail goods (30% of total Visa spend), transport (22%), accommodation (16%), professional and commercial services (6%) and healthcare services (5%). The amount spent was generated by approximately 3.1 million transactions made by international visitors in Singapore. Most were made at retail and wholesale outlets (1.2 million), transportation services (452,000) and restaurants and food outlets (313,000) respectively.

The top retail merchants were clothing merchants, reporting a spend of Sin$51.2 million (US$31.5 million), jewelry, watches and crystal shops with Sin$43 million (US$26.4 million), and department and discount stores with Sin$39.3 million (US$24.1 million).

Visa International country manager for Singapore and Brunei, Gordon Cooper said, “This year, the Singapore government is aiming to welcome 9.4 million visitors to Singapore and garner Sin$1.2 billion in tourist receipts compared with 8.94 million visitors and Sin$10.8 billion in tourist receipts recorded last year.

“Visa is contributing toward this goal by running campaigns that cater to the interests of travelers to Singapore who come here for the great shopping and entertainment. One example of this is our current shopping festival at Changi Airport, which rewards practically every traveller for shopping at one of the world’s best airport shopping arcades. Visitors to Changi can experience Singapore’s world-renowned reputation as a shoppers’ paradise even if they’re only here on transit.”

In terms of spending by region, Asia Pacific cardholders made up 52% of the inbound spend in Singapore. European cardholders accounted for 27%, US cardholders made up 15%, while cardholders from CEMEA (Central Europe, Middle East and Africa) contributed 3% and Canadians accounted for 1%.

The biggest incremental increases in spend occurred with airlines [increase of Sin$68 million (US$42 million)], hotels [increase of Sin$30 million (US$18.6 million)] and computer network and informational services [an additional spend of Sin$23 million (US$14 million)].

Visa cardholders from Switzerland had the highest average spend per sale transaction in  Singapore at Sin$433 (US$266), followed by cardholders from Russia at Sin$407 (US$250) and cardholders from the United Arab Emirates (UAE) at Sin$361 (US$227). International cardholders withdrew Sin$88 million (US$54 million) from ATMs and over the- counter and the average spend per transaction (excluding cash withdrawals) was Sin$254 (US$156).

Cooper said that it is also important for the travel industry to know what might be keeping visitors away from a destination, “Much of Singapore’s tourism success is due to how it is perceived internationally both in terms its tourist attractions and its security and safety records.”

He added, “According to a travel perceptions study we have just commissioned, Singapore is the fourth most considered Asian travel destination by international travelers, mainly because of its reputation as a safe destination in relation to other Asian destinations. Travelers felt that Singapore was either not affected or had controls in place that would protect them from both man-made and natural issues such as bird-flu, Tsunamis and security concerns.”

According to the travel perceptions study, which aimed to identify which country’s travelers were visiting countries in the Asia Pacific as well as barriers that were keeping other potential visitors away, travelers from China were most likely to consider a holiday in Singapore (56%) followed by Australians, of whom 43% said they were likey to visit Singapore.

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