APPD Market Report Article

Singapore

May 26, 2024

Nihat Ercan, CEO - Hotels & Hospitality Group, Asia Pacific

7.9%

SGD 374

RevPAR
Rising

Improved flight connectivity and capacity boosts tourism recovery

  • Singapore recorded 4.4 million visitors as of YTD March 2024, translating to a 49.6% increase y-o-y. Visitor arrivals are forecast to reach 15–16 million in 2024, according to a report by the Singapore Tourism Board.
  • Notably, visitor arrivals from mainland China have increased most significantly from 2023. Mainland Chinese arrivals shot up 530.9% y-o-y, while other source markets, such as Indonesia and Malaysia, also saw 33.8% and 21.4% y-o-y growth, respectively.

Muted new supply growth in 2024

  • In the first quarter of the year, Singapore counted one hotel opening, adding 989 rooms to the existing supply. The Mercure Icon Singapore City Centre, a midscale development, is located in the Raffles Place district.
  • For the remainder of the year, three hotels totalling 291 rooms are expected to enter the market. These include the 86-key Lo & Behold (Alma House), the 143-key Standard Singapore and the 62-key Raffles Sentosa Resort & Spa.

Tourist spending increases compared to 2023

  • Trading performance of Singapore’s hotels showed a sustained rebound across all segments, primarily due to an increase in average daily rates. This favourable trend was bolstered by guests’ willingness to pay higher rates and an influx of international tourists, which was facilitated by improved air traffic conditions and mega events such as the Coldplay and Taylor Swift concerts.
  • Specifically, luxury hotels in Singapore continue to ramp up in both occupancy and rates. It was a record year in 2023 for luxury hotels, as revenue per available room (RevPAR) reached a high of SGD 372. Based on YTD March 2024 data, hotels are on track to set another record year.

Outlook: Demand continues to grow and support improved RevPAR

  • MICE is expected to continue driving demand in 2024 as a full-scale return of events, conventions and concerts has been lined up for the year. This includes major events such as the World Architecture Festival and the LIV Golf Singapore.
  • Trading performance is expected to continue growing, although at a subdued pace compared to the current record levels, given the global economic slowdown and political tensions. However, this may be offset by continuous growth in international flight capacity to pre-pandemic levels for key markets.

Note: Singapore Hotels refers to Singapore's luxury hotel market.

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