Chart of the Day: Tourists could account for a fifth of retail sales by end-2019

Tourist expenditure on shopping grew at a 10-year CAGR of 3.4%.

This chart from UOB Kay Hian shows spending by tourists over the past 18 years and projects that the sector will account for 21.5% of total retail sales by end-2019.

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The headline figure is higher than 16.7% seen in 2000, but is lower than its peak of 23.6% in 2016.

Furthermore, tourist expenditure on shopping and F&B grew at a 10-year compound annual growth rate (CAGR) of 3.4% and 3.1% respectively, which was faster than the 1.4% for retail sales excluding motor vehicles.

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The report noted that tourists are becoming a bigger driver of retail sales relative to domestic consumption.

This will be further driven by the expanding number of tourist visits as well. UOB Kay Hian stated that visitor arrivals has consistently surpassed population growth, with the former growing at a CAGR of 6.2% over the past ten years compared to the latter’s 1.5% growth.