Strong visitor performance on the back of various concerts and events

• Singapore recorded 8.2 million visitors as of YTD June 2024, translating to a 31.2% increase y-o-y. On the back of a stronger-than-expected recovery in Q1, the Singapore Tourism Board is projecting 15 to 16.5 million international arrivals in 2024.
• Improved global flight connectivity and the 30-day visa exemption between Singapore and Mainland China are expected to drive recovery for the remainder of the year.

Muted supply growth in the short to medium term

• In the first half 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, four hotels totalling 425 rooms are expected to enter the market. Over the next three years (2024–2027), hotel room supply is expected to marginally grow at a CAGR of 1.9%.

Moderation in trading performance in the first half of the year

• As of YTD June 2024, Singapore hotels recorded a growth in RevPAR from H1 2023, mostly led by elevated ADR levels. However, luxury RevPAR growth has flattened, as visitor arrivals slowed in recent months.
• Singapore recorded almost SGD 697 million in hotel transactions completed in the first half of 2024. Notable deals include Fraser Residence River Promenade, acquired by Tuan Sing Holdings Limited in the quarter.

Outlook: MICE and corporate business to drive growth for the remainder of the year

• As regional currencies depreciate against the Singapore dollar, leisure demand from top source markets is expected to remain muted in the near term.
• 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.