Retail sales to boost Singapore visitor arrivals by 9.9% end-2012

The 1.8% YoY growth in sales index is projected to help STB reach its visitor projection of 13.5 to 14.5 million.

According to Colliers International, retail sales will receive a boost from the expected steady flow of visitors into the city-state. Singapore welcomed some 1.2 million visitors in April, bringing arrivals to 4.8 million in the first four months of the year. Taking intoaccount the line-up of Meetings, Incentives, Convention and Exhibition (MICE) events such as the World Cities Summit 2012 in July, the Formula

One night race in September as well as the year-end festive and school holidays, Singapore should be on track to meet the Singapore Tourism Board’s projection of 13.5 to 14.5 million visitor arrivals in 2012. There is further evidence to support these targets.

Here's more from Colliers International:

Singapore’s retail sales index (excluding motor vehicles) increased by 1.8% year-on-year (YoY) in April 2012. Sales at department stores fell marginally by 0.7% YoY, but supermarkets rose 4.4%, and food and beverages increased by 2.1%. The food and beverage services index, which tracks sales at restaurants, fast food outlets and food caterers, rose 2.9% YoY in April.

Given the resilience demonstrated in 1H 2012, consumer sentiment is foreseen to stay positive in the remaining half of the year in spite of the looming spectre of inflationary pressures. And with the wider spread of shopping and dining options in and out of the prime Orchard Road shopping belt to tempt shoppers, retailers and F&B operators’ tills should stay ringing in 2H 2012.

According to the MasterCard Index of Global Destination Cities, Singapore’s visitor arrivals are expected to jump 9.9% in 2012, making the city-state the fourth fastest-growing destination city across the Asia-Pacific.

Sustained retail sales growth should continue to stoke retailers’ confidence and prop up demand for retail space. Coupled with Singapore’s steadily solidifying status as a cosmopolitan international city and a gateway to Southeast Asia, more retail brands will be attracted to make inroads into the city-state. In addition to acclaimed international brands, new-to-Singapore retailers boasting unique products and retail concepts will continue to look for suitable space in both Orchard Road
and Regional Centres.

F&B chains, like coffee joints and dessert shops, are also known to be looking to make an entry into the Singapore retail scene. Such chains would typically try to establish a presence in Orchard Road before opening branches in suburban malls or other locations.