Singapore Households Estimated to be World’s 7th Top Overseas Travel Spenders by 2025
International travel amongst Singapore households are expected to double by 2025, ranking seventh in the world and third in Asia Pacific
The overall overseas travel spend by Singapore households is expected to double to almost US$45 billion by 2025, placing the country/region in the top 10 globally and in the top three in Asia Pacific, according to Visa’s “Mapping the Future of Global Travel and Tourism in Asia Pacific” report. Average annual spend on overseas travel per Singapore household is projected to hit US$30,230 by 2025, almost six times the Asia Pacific household average of US$5,230 and the global household average of US$5,309.
|Rank||Market||2015 (USD billion)||2025 (USD billion)||% increase|
|2||The United States||$101.0||$134.1||33%|
|4||The United Kingdom||$61.3||$96.9||58%|
|6||Hong Kong, China||$26.7||$47.4||78%|
In Asia Pacific, households in Mainland China (US$255 billion), Hong Kong (US$47.4 billion) and Singapore (US$44.9 billion) are likely to be the top markets with the largest outbound travel spend. However, emerging markets Indonesia (211 per cent), Vietnam (132 per cent) and India (101 per cent) are likely to experience the sharpest increases in spending.
|2||Hong Kong, China||US$26.7||US$47.4||78%|
|Asia Pacific total||US$319.6||US$568.2||78%|
Travel spend among top five Asia Pacific markets (according to 2025 values) with households earning US$20,000 or more annually by projected 2025 spend. Figures are based on constant 2015 prices.
“Travel continues to be a staple activity amongst Singaporeans. The increasing popularity of online travel portals and mobile travel apps, coupled with more convenient and secure electronic payment options, will allow travelers to book their next travel destination with greater ease and lead to continued growth in international travel,” Ooi Huey Tyng, Visa Country Manager for Singapore and Brunei, said. “Visa continues to work with our partners to ensure that consumers enjoy the convenience and reliability of electronic payments when travelling and we expect to see even more Singaporean travelers heading abroad every year.”
Global Aging: Globally, by 2025 it is estimated that travelers aged 65 and above (seniors) will make an estimated 180 million trips, more than doubling their current international travel and accounting for one-in-eight international trips taken. According to the study, it is predicted that older travelers will be able to afford longer trips that provide greater comfort, and at higher prices. Trends such as “medical tourism”, in which aging populations undertake international travel for medical purposes, will also become more popular in the future.
In Singapore, international travel amongst seniors is expected to grow by more than 300 per cent to over 3 million trips by 2025. According to the study, Singapore citizens aged 65 and above are currently taking an average of 1.31 outbound trips per person each year. By 2025, this number is expected to increase to 2.84. In Southeast Asia, the Philippines is the only market with a higher projected growth rate (360 per cent) in international travel by seniors than Singapore.
Number of international trips by 65+ year olds (thousands) in Southeast Asia.
“Many of today’s senior travelers have the time, money and interest to explore new and unique destinations in all parts of the world. As one of the fastest growing tourism sectors in the region, senior travel brings tremendous opportunities for merchants in the tourism and hospitality industries. Singapore is a key aviation hub and is an extremely well-connected city, so travelling abroad is relatively easy, driving an increasing desire for more trips and higher spending,” Ooi Huey Tyng said.
Additional Highlights of the global report include:
The Rise of a new Global Travelling Class: Growing income levels around the world are creating a new “travelling class”. The study showed that worldwide, households that make at least US$20,000 per year account for more than 90 percent of spending on international travel. By 2025, it is estimated that nearly half of all global households (945 million) will be within this income range, spurring greater international travel and spending, particularly by households from emerging markets.
|5||Hong Kong, China||5.0|
Top five Asia Pacific markets with highest average number of countries/regions visited by a Visa credit cardholder in 2015
Increasing Connectivity: The combined forces of globalization and technology are also expanding access. Construction of more than 3401 new airports across the globe is expected over the next decade, creating new routes and destinations that will make international travel easier and more convenient. At the same time, awareness of travel options is spreading with the rapid uptake in internet access and the number of mobile devices around the world. Digital connectivity is not only fostering greater spontaneity in travel, but also spurring a broader array of personalized travel and tourism options.
An executive summary along with country and region-specific data as well as interactive tools can be found on www.visa.com/travelinsights.
1 Tourism Economics analysis of CAPA data
Visa estimates the number of households travelling internationally by comparing Visa-branded cardholders in a given country/region who have made at least one face-to-face transaction abroad versus the population of all active cardholders in the source country/region. The figures were adjusted to be representative of the source country/region’s population regardless of payment methods used by households. These propensities were then used as an input in the forecasts developed by Oxford Economics for the Study.
Oxford Economics used survey data on the age and income of the international travelers from a sample of 10 countries/regions to calculate international travel frequencies and share of travel by age bracket and income class. The results were extrapolated to a broader set of countries/regions based on their classification as developed or emerging markets and key variables such as GDP per capita and total international arrivals per capita. The estimated travel shares were then compared with each country/region’s household income distribution and age distribution to develop a historical relationship from which to project international travel shares and volumes by income class and age bracket from 2005 to 2025.
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