Singapore retail property highlights

Consumer spending in Singapore recorded S$33.1 billion (including motor vehicles) in 2007, representing a 3.8 per cent increase year-on-year (yoy).

Excluding motor vehicles, retail sales value for the same period was estimated at S$22.5 billion, posting a decade-high growth of 9.0 per cent yoy.

Between the months of November and December 2007, shoppers spent S$5.8 billion, attributable to extravagant Christmas season spending. Entering 1Q 2008, the retail sales index (including motor vehicles) posted a 1.5 per cent yoy increase, while retail sales value rose by 7.8 per cent yoy to achieve S$3.25 billion in January.

In the first quarter of 2008, strong consumer sentiments did not wane despite the uncertainties in the financial market, evident from events that fulfilled their expected sales and visitor targets.

These events included the recent Information Technology (IT) Show 2008 held at Suntec City, which drew 735,000 visitors and S$54.5 million in sales as well as the NATAS Travel Fair that attracted more than 50,000 holiday seekers and brought in close to S$50 million worth of travel deals.

Other than such fairs and events to lure huge crowds, the Singapore Flyer, which is the largest observation wheel in the world and opened to the public in March 2008, is also envisaged to maintain Singapore´s position as a key tourist spot in Asia.

Singapore´s tourism sector expanded strongly in 2007 and is expected to enjoy further growth in the coming years. On the back of record visitor arrivals and tourism receipts in 2007, the Singapore Tourism Board (STB) announced a target of 10.8 million visitor arrivals and S$15.5 billion in tourism receipts for 2008.

The year set off on a laudable start with more record numbers of tourists. In March 2008 for instance, Singapore welcomed 908,000 foreign visitors, the highest ever visitor arrivals for the month, representing a 5.7 per cent yoy growth.

More benchmark figures for visitor arrivals are expected to be achieved with eagerly anticipated leisure and business events lined up for the next few months, including the Singapore Arts Festival, Great Singapore Sale, inaugural Formula One night race, SITEX 2008, ITB Asia, and trade shows
for the Asian travel market and Biomedical Asia.

For example, the Singapore Airshow held at the Changi Exhibition Centre in February 2008 captivated an avid crowd of 90,000, with a huge exhibition and an airshow featuring the Black Knights of the Republic of Singapore Air Force (RSAF), international fighter planes and the Airbus A380.

The six-day event eventually sealed S$18.9 billion worth of deals. These events are anticipated to attract more tourist dollars to the retail sector. Boosting Singapores cruise industry, a mega cruise terminal at Marina South capable of hosting premium ocean liners, such as Royal Caribbean Cruises
Rhapsody of the Seas, will be operational by 2010 and double the capacity of Singapore´s international cruise infrastructure.

The current Singapore Cruise Centre at HarbourFront welcomed 943,000 cruise passenger throughput in 2007, a 10 per cent growth compared to 2006. STB targets to achieve 1.6 million cruise passenger throughput by 2015.

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