How do you open a travel agency in Singapore: A definitive guide (2025)

Singapore's tourism industry is expected to have strong years of growth in the future. Revenue from this market is predicted to reach 4,342 million USD by 2025 and continue to grow at an average of 3,60% per year from 2025 to 2029. By 2029, the market size is expected to reach 5,001 million USD.

Package tours is expected to generate revenue of USD 1,703 million by 2025. The number of customers using package tourism services is expected to reach 4,17 million by 2029.

Market penetration is forecast to increase from 92,6% in 2025 to 103,9% in 2029. Average revenue per customer (ARPU) is expected to reach USD 770,20. In particular, the tourism segments of resort tourism, green tourism (sustainable tourism) and cultural tourism are becoming increasingly popular and loved.

By 2029, online sales are expected to account for 69% of total tourism market revenue in Singapore. Travelers increasingly prefer booking complete tours online. Sustainable tourism, wellness retreats, and cultural experiences are gaining popularity and becoming more in demand.

The license is valid for 2 years from the date of issue. The validity period is stated on the Electronic License. 

For example: 

• Issue date: 01/01/2023 - Expiry date: 31/12/2024.
• Issue date: 15/01/2023 - Expiry date: 14/01/2025.

According to Section 4 of the Travel Agents Act – Chapter 334, travel agencies can:

• Sell travel tickets and arrange transportation.
• Offer prepaid travel packages (flights, accommodation, visas).
• Buy and resell the right to travel by any means of transport.
• Organize tours in and out of Singapore.
• Operate under Singapore Tourism Board (STB) regulations.

STB (Singapore Tourism Board) currently offers 2 types of travel agency licenses:

• Niche Licence: For travel agencies selling or arranging local tours without accommodation (e.g., coach tours).
• General Licence: For agencies offering all travel services beyond Niche Licence activities.

To apply for a travel agency license in Singapore, you should follow these requirements below:

• Business Registration: Register your business with the Accounting and Corporate Regulatory Authority (ACRA) to operate as a travel agency.
• Registered capital: A registered travel agency business must have a minimum paid-up capital of SGD 50.000 (for a Professional License) or SGD 100.000 (for a General License). In addition, the net asset value of the business must also be equal to or greater than the corresponding paid-up capital.
• Business email setup: Create a separate email address for your travel agency business.
• Appointment of director: All applicants must appoint a Managing Director who is directly responsible for the day-to-day management and operations of the travel agency. This person plays a key role in ensuring the efficient and regulatory compliance of the business.
• An operating address: Specify an operating address that will be used to conduct travel agency business.

Any business that contravenes any provision of the Travel Agents Act 1975 or the Travel Agents Regulations 2017 may face one or more of the following penalties:

• Administrative penalty: Fine up to SGD 2.000.
• Fine: Up to SGD 5.000 (or half the maximum fine for the offense, whichever is lower).
• Imprisonment: Possible jail time for serious violations.

To check whether a travel company is licensed to operate in Singapore, Individuals/Businesses should visit the following website: Travel Agent.

Enter “business name” in the search box, then perform a search. If the search results show the company as “Active” and have information about the travel agency license, it means that the company is licensed and operating legally in Singapore.

• The program supports hotels, attractions, inbound travel agencies, and MICE businesses in post-pandemic recovery marketing.
• The main objective of MPP program is to support the international marketing efforts of tourism businesses, maintain Singapore's international presence, strengthen Singapore's position as a top choice destination for corporate events and boost tourism demand as the market recovers.

• Participation at Singapore Visitor Centre (SVC) Network If the tourism business wants to improve the quality of services at the facility or wants to introduce new and attractive tourism products to tourists.
• As one of the first points of contact for visitors, information desks and concierges are important opportunities to create a lasting impression of Singapore.
• STB aims to build a community of enthusiastic and dynamic travel service providers, to support excellent service and innovative experiences for travelers.

• The TSP program supports travel agencies in their sustainability journey at every stage, equipping them with the ability to build staff capacity and develop innovative solutions to seize opportunities from sustainable tourism.
• TSP Program was developed to support tourism businesses in their sustainability journey, at every stage, equipping them with the ability to build staff capacity and develop innovative solutions to seize the opportunities of sustainable tourism.

Travel agents found operating without a valid licence will be liable to a maximum fine of SGD25.000 or up to 2 years imprisonment or both.

• Tour operator: Organizes package tours.
• Travel agencies: Provide booking services for flights, hotels, visas, and travel insurance.
• MICE tourism companies: Specialize in organizing Meetings, Incentives, Conferences, and Exhibitions (MICE) for corporate clients.
• Resort & Leisure Travel Companies: Offer luxury tourism services such as spa retreats, golf packages, and high-end resorts.

The time usually ranges from 2-4 weeks, depending on the complexity of the application and the processing time of relevant authorities (ACRA & STB).

• Research the market and competitors carefully.
• Choose a reputable partner.
• Diversify products and services.
• Build a detailed business plan.
• Buy business risk insurance.