
Have you ever dreamt of turning your passion for travel into a successful business? With Singapore ranking as one of the world’s most visited cities—attracting 19.1 million tourists in 2019 and generating SGD 27.7 billion in tourism receipts—starting a travel agency here is not just a business idea; it’s a golden opportunity. The Lion City’s strategic location, seamless connectivity, and status as a global aviation hub make it a magnet for both business and leisure travellers.
With the rise of personalized and experiential travel, demand for curated travel services is skyrocketing. Whether it’s luxury tours, adventure getaways, or corporate travel, Singaporean travel agencies are capitalizing on a booming market. If you’re an entrepreneur looking to tap into this lucrative sector, this guide will walk you through everything—from business registration and licensing to profitability and services.
Let’s dive into how you can establish a successful travel agency in Singapore and make your mark in the industry!
Is the Travel Agency Business Profitable in Singapore?
Singapore’s travel industry is booming, with over 19.1 million international visitors in 2019, generating SGD 27.7 billion in tourism receipts (Singapore Tourism Board, 2020). Despite the impact of the pandemic, the sector has shown strong signs of recovery, thanks to the country’s effective handling of the crisis and reopening strategies.
Key profitability factors:
- High demand for travel services: With Singapore being a top global destination and a gateway to Asia, the demand for travel-related services is consistently high.
- Diverse customer base: The country attracts both business and leisure travellers, ensuring a steady stream of clients.
- Digitalization and innovation: Online bookings, AI-driven itineraries, and personalized travel experiences allow agencies to cater to tech-savvy travellers and boost profits.
- Strategic location: As a travel hub in Southeast Asia, Singapore offers seamless connectivity, making it an ideal base for outbound and inbound travel agencies.
How to Start a Travel Agency in Singapore?
Below is a step-by-step guide for starting a travel agency in Singapore:
Step 1: Choose the Right Business Structure
Before registering your travel agency, decide on the business structure.
The most common choices include:
- Sole Proprietorship: Easy and affordable but provides no limited liability protection.
- Limited Liability Partnership (LLP): Suitable for small travel agencies with multiple owners.
- Private Limited Company (Pte Ltd): A private limited company in Singapore is the most preferred structure as it offers liability protection, tax benefits, and credibility.
Step 2: Register Your Travel Agency
To legally operate a travel agency in Singapore, you must register your travel agency with the Accounting and Corporate Regulatory Authority (ACRA) via BizFile+.
The registration procedure covers the following:
- Selecting a unique name for your travel agency.
- Submitting company details and shareholders’ information.
- Paying a registration fee.
Step 3: Obtain a Travel Agent License
All travel agencies in Singapore must be licensed by the Singapore Tourism Board (STB) under the Travel Agents Act. The requirements for acquiring a travel agent license include:
- A paid-up capital of a minimum of SGD 50,000 for general travel agents.
- A physical office in Singapore.
- A key executive with relevant experience in the travel industry.
- Compliance with the Travel Agents Regulations and consumer protection laws.
- A valid business insurance policy.
The license application is submitted via GoBusiness Licensing and takes about 1-2 months for approval.
Requirements to Open a Travel Agency in Singapore
To legally operate a travel agency, you must fulfil the following requirements:
- Business Registration: Incorporate your business with ACRA.
- Travel Agent License: Obtain approval from STB.
- Office Space: A physical or virtual office in Singapore is mandatory.
- Paid-Up Capital: At least SGD 50,000 for a standard license.
- Qualified Key Personnel: At least one person with experience in the travel industry.
- Compliance with STB Regulations: Ensure adherence to the Travel Agents Act and Code of Conduct.
- Business Insurance: Protect your agency from liabilities.
Which Travel Agency is the Best in Singapore?
Singapore is home to several top-performing travel agencies.
Some of the most reputable ones include:
- Chan Brothers Travel – One of Singapore’s oldest and most trusted travel agencies, offering a wide range of tours and packages.
- Dynasty Travel – Specializes in customized luxury and corporate travel solutions.
- CWT Travel – A leading business travel management company.
- CTC Travel – Offers budget-friendly tour packages and group travel options.
Services Provided by Travel Agencies in Singapore
Travel agencies in Singapore offer a wide range of services to cater to different travellers.
Common services include:
- Flight Bookings – Reservations for domestic and international flights.
- Hotel and Accommodation Arrangements – Partnering with hotels to provide lodging options.
- Tour Packages – Customized itineraries for leisure and business travellers.
- Visa and Travel Documentation – Assistance with visa applications and travel insurance.
- Corporate Travel Management – Business trip planning and concierge services.
- Cruise and Luxury Travel – Booking cruise packages and high-end travel experiences.
- Event and MICE Travel – Organizing Meetings, Incentives, Conferences, and Exhibitions (MICE).
Benefits of Opening a Travel Agency in Singapore
1. Business-Friendly Environment
Singapore ranks among the easiest countries to do business in due to its transparent regulations and pro-business policies.
2. Strong Tourism Market
With millions of visitors every year, there is a high demand for travel-related services.
3. Tax Advantages
Singapore has one of the lowest corporate tax rates, at 17%, making it a desirable location for companies.
4. Global Connectivity
As a major travel hub, Singapore offers easy access to global markets, making it easier to expand your travel agency.
5. Access to Skilled Workforce
Singapore has a highly educated workforce, ensuring that you can find skilled employees for your agency.
Conclusion
For entrepreneurs hoping to capitalize on the booming tourist sector, opening a Singapore travel agency is a profitable business opportunity. By following the proper registration procedures, obtaining the necessary licenses, and leveraging Singapore’s strong business ecosystem, you can build a successful travel agency.
If you’re ready to start your travel business in Singapore, consult with OnDemand International incorporation experts to streamline the process and also get assistance with post-registration compliance services.
FAQ’s
Yes, all travel agencies in Singapore must obtain a travel agent license from the Singapore Tourism Board (STB) before operating legally.
No, a physical office is mandatory as per the STB regulations.
Singapore’s business-friendly environment, strong tourism market, tax benefits, and global connectivity make it an ideal location to start a travel agency.