In 1992, British national Tony Cross first set foot in Singapore, a place then known for its glitzy shopping malls, vibrant juke nightclubs, and the famed Singapore Zoo. However, 30 years later, Singapore welcomes tourists with a completely different face. With soaring commodity prices due to its small land area and high commercial rents, shopping is no longer a primary tourist draw. The once-thriving club industry is also struggling with high costs and changing drinking habits.

Moreover, competition from cheaper Southeast Asian cities is intensifying. In response, Singapore is leveraging world-class attractions such as Marina Bay Sands, Gardens by the Bay, and the expanding Mandai Wildlife Reserve to attract both budget and luxury travelers, rather than competing on price.

Additionally, a variety of business conferences and live events, from the annual Formula One night race to concerts by famous stars like Taylor Swift and Coldplay, are drawing in tourists. Notably, this year, Lady Gaga will hold her only performances in the Asia-Pacific region in Singapore on May 18, 19, 21, and 24.

Cross, a financial consultant who has visited Singapore 20 times over 30 years, said, "Singapore established a strong position as an easily accessible Southeast Asian destination in the 80s and 90s. But now, many other cities in the region have also raised their standards."

Betting on the 'Experience Economy'

According to the Singapore Tourism Board, the number of overseas tourists visiting Singapore in 2024 increased by 21% from 2023, reaching 16.5 million. This figure does not include the hundreds of thousands of people who enter Singapore daily via the two bridges connecting Singapore and Malaysia.

This is a tremendous increase compared to 1992, when Singapore attracted less than 6 million tourists, according to the Singapore National Archives. However, it still falls short of the 19.1 million arrivals in 2019.

The Singapore Tourism Board expects tourist numbers to rise to between 17 million and 18.5 million this year, driven by lifestyle and MICE (Meetings, Incentives, Conventions, and Exhibitions) events, as well as new attractions ranging from the Rainforest Wild Asia Park, which opened last week, to the Disney Adventure cruise ship, which is scheduled to set sail in December.

The Singapore Tourism Board told CNBC Travel that it will continue to support projects that offer interactive experiences, in line with the global experiential travel trend.

Galastein Tan, former head of major events at the company that manages the Singapore Sports Hub, the venue for last year's Taylor Swift concert, said that a vibrant tourism sector is necessary for Singapore to attract and retain human capital to establish itself as a global city. This includes developing a portfolio of fixed assets like Marina Bay Sands and 'fluid' assets like concerts, sports, and cultural events.

Having a diverse range of tourist attractions will also help boost domestic consumption and create jobs locally, he said.

Singapore's retail and food and beverage sectors contracted last year, even as the overall economy grew by 4.4%, as increased overseas spending by Singapore residents offset the rise in tourism revenue.

"It remains a challenge for Singapore to stay ahead, as regional countries and cities are catching up by strengthening their own unique tourism portfolios. Tourists now have more choices," Tan said.

Expensive Hotels, Affordable Food

Expedia, a major online travel company, said that searches for flights to Singapore from China, Indonesia, and India, the top three sources of tourists to Singapore, decreased by 1% from February to July 2025 compared to the previous six-month period. Accommodation searches also decreased by 2% during the same period, the company said.

Singapore remains a popular destination for MICE events, ranking second after Paris in the International Congress Association's 2023 city rankings. However, Thailand and Malaysia are making inroads into this sector based on lower costs and improved infrastructure.

Malaysian event planner Albert Lee said that high-end convention spaces in Kuala Lumpur can be rented for about half the cost of those in Singapore, and a 40-person dinner at a high-end restaurant, including entertainment and transportation, can be arranged for a third of the cost. He added that costs in Bangkok are similar to those in Kuala Lumpur.

"Singapore is a perfect place to hold events. It's nice, safe, accessible, and the STB is very helpful. But the costs are very high," Lee said.

Lee pointed out that while Kuala Lumpur does not have iconic hotels like Singapore's Marina Bay Sands, the city's five-star hotels are much cheaper. For example, according to Hotels.com reviews, a room at the Shangri-La Singapore costs 500 Singapore dollars ($375) per night, while its sister hotel in Kuala Lumpur costs 170 Singapore dollars per night.

Finding Value

The Singapore Tourism Board has been trying to change the perception that Singapore is expensive by highlighting how much can be done in a day thanks to Singapore's public transportation system, a point also noted by Cross.

"We have worked with a variety of influencers to show how Singapore is not only value for money but also how travelers can make the most of their time in the destination," a spokesperson said.

Japanese businessman Tano Yoshihiko, who frequently visits Singapore to meet friends, said that while hotels are expensive, eating out is affordable thanks to the many hawker centers where meals and drinks can be purchased for less than 10 Singapore dollars.

"Hokkien mee is my favorite local dish," he said, adding that he enjoys nature walks in Singapore's many parks.

Singapore can count on the support of repeat visitors like Nazia Tanzim, who said that Singapore remains an object of admiration for Indians thanks to the Hindi song "Dekhoji Dekho Singapore" from a 1960 film.

Tanzim lived in Singapore for several years before moving to Bangalore, where education for her children is more affordable, but her husband still works in Singapore, she said.

"There are many people who want to visit Singapore at least once in their lifetime," she said.

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