India has emerged as the third biggest market for Singapore tourism, although reaching the pre-pandemic levels appears unlikely in near future, as newer destinations have started catching the fancy of Indian travellers.
Singapore has been a traditional travel hotspot for Indians but the emergence of places like Baku and Muskat has added to the options for Indian tourists. "In the last couple of years, especially after Covid, so many new destinations have emerged like Oman, Azerbaijan and Georgia. There are so much choices for Indian travellers now. The aviation landscape has changed too after Covid, the level of competition that we've seen for India has changed a lot," said Markus Tan, regional director of the Singapore Tourism Board (STB) for India, Middle East, South Asia, and Africa.
Indian tourist arrivals stands at 85 percent of the pre-Covid levels. "I don't think we'll be able to hit the pre-Covid numbers as of now.We are working towards the pre-Covid figures for next year," he said. The peak was in 2018 when Indian tourist arrivals were to the tune of 1.44 million. More Indian tourists opted for Singapore this year, taking their count past one million two months earlier than last year.
"In 2023, our key business came from Indonesia, followed by China, Malaysia, Australia, and India. Last year, India was ranked number five but, from January until October this year, the country moved up two ranks to become number three," Tan said.
For wealthy Indians, Singapore has been a traditional wedding destination. "There are a couple of Indian weddings being held in Singapore but not many as compared to other destinations like Bali, Dubai and Oman. The proposition and the type of weddings in Singapore is a little different from what we see in the traditional markets like Thailand or Oman, where it is slightly more of a domestic profile, but the weddings in Singapore tend to have a lot more international participants," Tan added.
Cruise tourism
The city-state is now betting big on cruise tourism, especially with the Disney Adventure cruise scheduled to be launched next year.
"Disney Cruise Line is making its debut in South East Asia with its launch in Singapore. The presence of Disney Cruise Line will not only boost South East Asia’s appeal as a cruise destination but also strengthen Singapore’s reputation as a preferred homeport," Tan said.
More than 101,000 Indian visitors travelled to Singapore to cruise in 2023, accounting for 24 percent of their global cruise visitor arrivals, and making India Singapore's second-largest cruise source market.
Cruising sees a tectonic shift from the Indian market with demand from younger cohorts, unlike the global norm that is centred largely around seniors, pointed out SD Nandakumar, president and country head for holidays and corporate tours at SOTC Travel Limited. "We are now seeing accelerated demand of 30-35 percent, with cruises today being the new event platform for India’s Gen Z and millennials."
Cruises have seen an impressive demand trajectory of around 40 percent annual growth rate from the company's corporate MICE (meetings, incentives, conferences, and exhibitions) segment—a top draw especially for top-performer incentive programmes of mid to large groups of 100 to 1,500 people, noted Rajeev Kale, president and country head for holidays, MICE, and visa at Thomas Cook (India) Limited.
Outbound market
An estimated 27 million Indian travellers are expected to go overseas in 2024, mirroring the pre-Covid levels, while the travel and tourism market in India is expected to generate $22.30 billion in revenue this year and reach $34.11 billion by 2029, Jyoti Mayal, president of the Travel Agents Association of India (TAAI), had said earlier this year.
Like 2023, India continues to be a key driver for many tourism boards. For destinations like Azerbaijan and Sri Lanka, Indian tourists are the key contributors. According to Azerbaijan Tourism Board chief executive Florian Sengstschmid, the number of Indian travellers surged to 1.40 lakh in the first seven months of 2024, up from 1.15 lakh in 2023, making a 2.7-fold increase. Tourist arrivals from India to Azerbaijan have been significantly higher than the pre-Covid numbers of 50,000 in 2019, thanks to enhanced connectivity, including 11 weekly flights from Delhi and three from Mumbai to Baku.
Sri Lanka too sees flow of Indian travellers. The island nation between January and the first week of August 2024, received around 2.3 million Indian visitors and India remained the largest source market for the destination.
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