SIGNS of a global economic recovery, coupled with rate cuts at hotels and cheaper fares, seem to have slowed the steep decline in the number of tourists coming to Singapore.

July's visitor arrivals, though 4.5 per cent fewer than in the same period last year, was the smallest decline seen so far this year. In previous months until now, the industry has seen tourist arrivals shrink between 6.1 and 15.2 per cent.

'Cautious optimism' that things may be on the brink of a turnaround is starting to replace the sinking feeling travel agents and hoteliers have had since tourism went south a year ago.

Figures released by the Singapore Tourism Board (STB) on Tuesday also showed the average hotel room occupancy hitting 80 per cent, a figure not seen since November last year. Occupancy this year dipped to as low as 67 per cent.

Five of the top 15 markets for tourists also registered year-on-year growth, with another two holding steady, compared to the earlier half of the year when more than 10 of the top 15 registered falls.

The better showing was probably the result of strenuous marketing efforts by STB bolstered by the improving economic circumstances, said operators.

Ms Wendy Leong, general manager of inbound tour agent City DMC, said that cheaper airfares, more affordable hotel rooms and the plentiful deals targeting regional travellers have helped her company. She has seen Indonesian travellers come back, and bookings from India, one of the main markets, are picking up.

The fact that H1N1 did not turn out to be as dangerous as first feared, and better awareness among travellers, also helped boost travel, added National Association of Travel Agents Singapore (Natas) chief executive officer Robert Khoo.

Still, hoteliers like Mr Kellvin Ong, the general manager of Rendezvous Hotel, caution that a month's good showing does not a trend make.

He said: 'It will be some months yet before we can safely say we are out of the woods.' Others pointed out that tourism would always lag behind any economic growth, with travel being discretionary spending.

Source: Straits Time