Singapore sees 12.3 million international tourists as of Nov 2023

• Singapore recorded more than 12.3 million foreign visitors between January and November 2023, reaching the target forecast by Singapore Tourism Board of 12 to 14 million for the full year, albeit only reaching 71% of the pre-pandemic level. Demand was driven by Indonesia, which continued to be the main source market.
• Despite significant growth since the beginning of the year, Chinese tourists in Singapore only represented 37% of the 2019 level as of YTD November 2023, a slower return than initially expected.

New supply in 2023 from refurbishment and rebranding

• In the last quarter of the year, Singapore counted 1,932 new hotel rooms, of which 51% are the result of rebranding after extensive refurbishment; for example, the 543-key Novotel Singapore on Kitchener (formerly PARKROYAL on Kitchener Road) and the 445-key Conrad Singapore Orchard (formerly Regent Singapore).
• The Luxury segment dominated the newly-opened supply in 4Q23 (40% of the new supply), followed by the Upscale (31%) and the Midscale (29%).

Singapore hotel guests willing to pay higher rates in 2023

• Singapore hotel trading performance experienced a continued recovery in all segments, mostly driven by higher average daily rates. This positive trend was supported by guests’ willingness to pay higher rates and an influx of international tourists on the back of improved air traffic.
• In addition, Luxury hotels registered the strongest y-o-y growth in occupancy in 2023, reaching 74.5%, just 4.2 percentage points below the pre-pandemic level.

Outlook: Demand continues to grow and support improved RevPAR

• The projected growth in visitor arrivals to Singapore in 2024 is anticipated to be a steady climb rather than a sudden surge, with Chinese visitation expected to grow steadily.
• Trading performance is expected to continue growing, although at a subdued pace compared to the current record levels, mainly due to increasing competitive pressures. However, this effect should be partially offset by the ongoing recovery in tourism arrivals, supported by improved air traffic.