What drove record travel spending by Singaporeans in Dec and Jan?

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Record Travel Spending by Singaporeans Driven by Prioritisation of Travel and Evolving Preferences

Singapore residents significantly increased their outbound spending in December and January, reaching record levels primarily driven by a strong prioritisation of travel experiences over other expenditures. This surge was further supported by a robust Singapore dollar, which enhanced the value of cross-border transactions. The data indicates a clear trend where travel is a leading expenditure for Singaporeans, even surpassing other major spending categories.
Shopping and Dining Dominate Travel Expenditure

During the December year-end travel period, shopping and dining constituted the largest share of Singapore travellers' spending, accounting for 61% of the total. Retail spending saw a notable year-on-year increase of 14%, while expenditure on restaurants and fast food experienced substantial growth, with surges of 27% and 30% respectively. This highlights the continued appeal of overseas retail and culinary experiences for Singaporean travellers.
Shifting Destination Preferences and Growth Corridors

Malaysia, Japan, and Thailand emerged as the primary destinations for Singaporeans' outbound spending in December. The introduction of visa-free travel to China significantly boosted travel to the country, resulting in an 86% year-on-year increase in spending there. Singaporean card spending in Japan, in particular, showed remarkable growth, increasing by 138% compared to pre-pandemic levels. Furthermore, Japan and Thailand experienced the highest year-on-year travel spend growth at 42% and 29% respectively, while Malaysia recorded the strongest growth in food and groceries spending at 75%.
Evolving Travel Motivations and Booking Trends

Beyond traditional leisure, healthcare has emerged as a growing motivation for travel, with South Korea and Thailand seeing increased spending in this sector. South Korea, for instance, experienced a 58% rise in healthcare-related travel expenditure. Concurrently, consumers demonstrated strategic planning by increasing spending on alternative airline carriers by 15% and online lodging bookings by 16% year-on-year in December, suggesting a proactive approach to securing travel deals and managing costs.
Lunar New Year Spending Reflects Continued Travel Prioritization

The trend of elevated travel spending continued through the Lunar New Year holiday week, with cross-border expenditure growing by 22% compared to the previous year. E-commerce spending also saw a significant increase of nearly 30% during this festive period. Malaysia remained the top travel corridor, with a 57% increase in payment volumes, and jewellery stores experienced exceptional growth exceeding 220%. Japan also saw a 36% growth in cross-border spend during the ski season, indicating sustained demand for travel during key holiday periods.

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What drove record travel spending by Singaporeans in Dec and Jan?

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