Market Insights

Last Updated on: 15 November 2010

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Singapore has rebounded from last year's global economic downturn with spectacular success. The country's economy is one of fastest growing in the world and Singapore's government and many economists predict GDP growth in 2010 to be comfortably above 10 per cent.

Economy

Singapore's economy has grown at break-neck speed throughout 2010, boosting Asian economic growth that is outpacing the rest of the world.

Singapore's Ministry of Trade and Industry reported recently that GDP grew by 18.1 per cent in the first half of 2010. That was the country's biggest rise since record-keeping began in 1975, according to moneymorning.com.

Total 2010 export growth is projected at up to 19 per cent. The strength of Singapore's export sector, particularly to Asia, plus increased consumer spending, are expected to offset future risks from a weak European economy.

Singapore remains one of the most competitive economies in the world with an almost corruption-free business and Government sector. Job losses during the global recession were few, which has helped keep Singapore's consumers among those with the highest levels of income in the world.

Key Indicators

Sources:
www.economist.com (GDP Growth)
www.xe.com (Exchange rates)

Exchange Rate vs NZD SGD1 = NZD1.0 (12 Nov 10)
Expected GDP Growth +12.8% for 2010
+4.6% for 2011
(Sept 10 est.)

Outbound Travel

The strong economic recovery bodes well for outbound travel from Singapore in 2010. Overseas travel remains a priority among Singaporeans and the number of outbound flights is expected to improve on the 4.9 million recorded in 2009.

A surge in holiday arrivals to New Zealand in February was due to strong demand during the Chinese New Year, which was in January last year. A 100-strong incentive group also boosted arrivals in February.

Holiday visitor arrivals were slower than usual in March and April but have been relatively steady on last year's levels in every month since May. This is despite many locals opting to stay home to watch the FIFA World Cup, Singapore hosting the Youth Olympic Games in June, and the opening of two local resorts, backed by aggressive advertising campaigns targeting the domestic market.

Airline Update

Passenger traffic at Singapore's Changi Airport grew by 3.64 million passengers in June, continuing the positive upward trend for the first five months of the year.

Singapore Airlines has added two additional flights on its Singapore to Auckland route to cover the peak travel season, from November 2010 to January 2011. This increases the number of weekly flights to Auckland to 14 per week. Christchurch is also being served daily.

Budget airline Jetstar Asia is continuing to actively promote upcoming daily flights between Singapore and Auckland starting March 2011. The airline has been offering promotional one-way fares of S$448 on the route.

Competitor Activity

Singapore tourism agencies have joined with the Korean Tourism Organisation to promote travel between their two nations.

Tourism Australia's new brand campaign "There's Nothing Like Australia" launched in Singapore recently, with TV and YouTube activity. Australia is the sixth most popular travel destination for Singaporeans, attracting 285,300 visitors from Singapore in 2009.

Jetstar has chosen Singapore as its Asian hub for both short-haul and long-haul operations.

Taiwan Tourism, along with the tourism bodies from Japan and South Korea, are running weekly travel features on Channel NewsAsia.