[SINGAPORE] A well-stacked calendar of meetings, incentives, conferences and exhibitions (Mice) and exclusive sell-out concerts greatly benefited Singapore’s hospitality sector and drove up room rates last year, but the impact on tourist footfall in malls is “more nuanced”, a recent consultancy report said.
Tourism receipts hit an all-time high last year, chalking up S$22.4 billion in the first nine months of 2024, amid a robust calendar of events.
But tourist foot traffic at malls near event venues varied, revealed an in-depth study by CBRE, which examined pre and post-event tourist footfall at malls.
Concerts contributed to the foot traffic of nearby malls, while other Mice events did not have a similar impact.
And during periods when there were events and concerts, there was “no significant impact on footfall in malls in tourist-centric areas, such as Orchard”.
Kallang Wave Mall and Leisure Park Kallang, which are situated closest to the National Stadium and Singapore Indoor Stadium, generally saw the highest footfall from tourists during concert periods, compared with before and after these periods, and versus a year ago.
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“The largest difference can be observed during the Taylor Swift concert, with footfall increasing 50 (times) from the same period a year ago,” the CBRE report noted.
Harbourfront Centre and VivoCity also observed higher tourist footfall during events held in Resorts World Sentosa (RWS). Events hosted by RWS in 2024 include Adventure Cove Waterpark Bubble Fiesta and the HSBC Women’s World Championships.
Meanwhile, other Mice events did not correspond with a similar surge in footfall in nearby malls as concerts. This is because attendees often remain at the event venue, coming from and returning directly to work, noted the consultancy.
“Even Formula 1, arguably one of the most major events in Singapore, saw lower tourist footfall in nearby malls before and during the race,” the report said.
“This is likely attributable to the sharp increases in hotel prices during the Formula 1 period, which deters some tourists from visiting the country, and road closures, which diverts traffic away from the malls.”
That said, CBRE noted that Formula 1 continues to “perform well”, drawing a sold-out crowd of more than 269,000 last year.
From 2008 to 2023, Formula 1 generated around S$2 billion in incremental tourism receipts and brought in many international business events and business travellers.
Mice events have raised Singapore’s profile and enticed retailers to set up shop in the city-state.
“Retailers also view Singapore as a key gateway to South-east Asia, and seek to expand here to diversify concentration risks in their home market, especially amid the uncertain economic climate,” said CBRE.
In the first nine months of 2024, new-to-market brands made up nearly 50 per cent of the new openings or expansions tracked by the consultancy. This is up from the 34 per cent recorded in 2019.
Robust demand from retailers also pushed up rents in the Kallang, Downtown Core and Orchard planning areas, which include the concert and tourist-centric locations, CBRE said.
“Rental growth was higher in the Downtown Core and Orchard areas, as retailers sought spaces to capitalise on tourism recovery and the return-to-office arrangements.”
As the pipeline of events and concerts remains robust in 2025, CBRE expects Singapore’s Mice and hospitality sector to continue growing.
But for retailers and landlords to draw crowds, CBRE suggests that they collaborate with artistes or Mice event organisers to showcase their products and services. It also recommended that they make retail more experiential by conducting themed activities related to the events being held.
