Going Gaga for tourism that powers Singapore’s retail real estate
A symbiotic relationship between tourism and retail continues to shape market trends
[SINGAPORE] In early February this year, British band Coldplay surprised Singapore fans with the release of their music video for Man In the Moon, shot entirely in Singapore. In partnership with the Singapore Tourism Board (STB) and Warner Music Singapore, the four-minute video showcased a public housing estate and key landmarks – including Jewel Changi Airport, Sea Aquarium at Resorts World Sentosa and Fort Canning Park.
The ingenious strategic content marketing play isn’t an isolated case. Over the years, Singapore has been increasingly featured in global pop culture, from OneRepublic’s Runaway music video filmed at Marina Bay Sands SkyPark in 2024 to Billie Eilish’s live performances recorded at Gardens by the Bay in 2022. Even alternative rock legends such as Beastie Boys and Pearl Jam have incorporated Singapore into their videos for The Gala Event and Nothingman.
Kudos to STB for maintaining Singapore’s status as a global tourism powerhouse, combining entertainment-driven content marketing featuring new attractions with a robust calendar of events.
Tourism’s ripple effect on retail real estate
Visitor arrivals in 2024 posted a remarkable 21 per cent year-on-year increase, reaching 16.5 million. Visitors from China, Indonesia and India remained the major markets, while Japan, Taiwan, the UK and US all recorded impressive growth.
Mega events – from blockbuster concerts by Coldplay, Ed Sheeran and Taylor Swift, to top gear race action at the Formula 1 Singapore Grand Prix – have solidified Singapore as a hub for world-class entertainment and tourism.
Singapore seems to be hitting the right notes in catering to tourists with relative higher spending power. The surge in visitor numbers, which includes the millennial demographic (aged 25 to 44) who are financially independent and typically favour experiential shopping and dining, sporting and cultural events, helped bolster both retail sales and food and beverage (F&B) spending.
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Tourism receipts are expected to hit an all-time high in 2024, when they are likely to reach the upper bound of STB’s forecast of S$27.5 billion to S$29 billion. Having already hit S$22.4 billion within the first nine months of 2024, spending is expected to surpass the pre-pandemic high of S$27.7 billion recorded in 2019.
Retail sales have generally tracked tourism growth, while domestic consumer spending underpins the retail trade. Government initiatives such as Budget 2025 payouts and SG60 celebration perks are expected to help lift buying.
The Food & Beverage Services Index (F&BSI), on the other hand, has remained stable, supported by domestic expenditure and government-issued Community Development Council (CDC) vouchers.
Nevertheless, rising occupancy costs and manpower woes continue to challenge F&B operators. It was reported that more than 3,000 F&B establishments in Singapore closed in 2024 alone – the highest in almost two decades since 2005. However, it should be noted that this was offset by 3,793 new openings, signalling continued market dynamism.
Despite high-profile closures of brands including Eggslut, Tigerlily Patisserie and Burger and Lobster, Singapore’s position as a premier shopping destination and a regional tourism hub is intact.
Luxury brands, international retailers and F&B operators continue to vie for exposure and space in our limited retail market, drawn by the city’s tourism ecosystem and high consumer spending power.
Strong leasing sentiment and tight retail vacancy are expected to support stable rental growth. Landlords are adopting a more curated tenant mix, incorporating experience-driven concepts such as immersive flagship stores, luxury pop-ups and themed dining experiences to attract footfall.
The future of retail real estate in a tourism-driven economy
The symbiotic relationship between tourism and retail continues to shape market trends, underscoring demand for retail space and experiential shopping. Landlords and retailers who adapt to changing consumer preferences – by blending technology, entertainment and immersive retail concepts – will be well-positioned to thrive.
Tourism receipts are expected to surpass the pre-pandemic levels with the slew of events and new attractions in the pipeline. New attractions, such as Rainforest Wild Asia at Mandai and Minion Land at Universal Studios, are poised to drive sustained visitor interest.
The events calendar for 2025 is equally promising. Having already hosted the HSBC Women’s World Golf Championship and Liv Golf Singapore, Singapore is set to welcome the World Aquatics Championships in July, cementing its reputation as a top-tier destination for international sports events.
On the entertainment front, major concerts – including performances by Black Eyed Peas, Elton John and Lady Gaga’s Mayhem Tour (her only Asian stop in 13 years) – are expected to generate substantial tourism-driven spending. The “Swiftie effect” in March 2024 showcased the power of music tourism, with Taylor Swift’s concerts contributing significantly to travel, hospitality and retail revenues. Now, the anticipation shifts to what Lady Gaga’s “Little Monsters” will bring to Singapore’s economy in May 2025.
The challenge for Singapore’s retail real estate players lies in balancing innovation, cost efficiency and evolving consumer behaviour. One thing is certain: in the interplay between tourism and retail, there will be no Bad Romance – only opportunities for sustained growth and success.
Desmond Sim is group CEO of Realion and CEO of ETC
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