Singapore’s tourism sector continues to recover despite global economic headwinds and geopolitical tensions

• As of YTD November 2024, Singapore recorded 15.2 million international visitor arrivals, a y-o-y increase of 22.9%, representing substantial progress in the tourism sector’s recovery.
• This growth is supported by improved flight connectivity and the 30-day visa exemption between Singapore and Mainland China. However, Chinese arrivals, in particular, have lagged in recovery, representing only 40% of pre-pandemic levels.

New openings are led by lifestyle brands compared to traditional corporate hotels

• In 2023 and 2024, growth was driven by the Midscale and Upscale segments, with a notable shift toward lifestyle brands and rebranded hotels, especially in Singapore’s Central region, indicating a move from traditional corporate hotels.
• For the next three years (2025–2027), hotel room supply is expected to grow at a CAGR of 1.5%. Key openings include the 62-key Raffles Sentosa Resort & Spa, the 350-key W Hotel Marina View and the 338-key Mandai Rainforest Resort.

Softening of hotel trading performance due to demand challenges

• In 2024, Singapore hotels’ RevPAR had slightly moderated from its peak in 2023. Across the different segments, hotels face pressure from occupancy constraints and increased competition from new supply.
• Significantly, 2024 hotel transactions are primarily for co-living conversions, as well as leasehold properties that have more favourable yield profiles.

Outlook: Tourism growth will continued to be driven by new government initiatives and innovative attractions

• Singapore will continue to solidify its reputation as Southeast Asia’s entertainment hub by hosting high-profile international concerts and performances.
• From the corporate and MICE perspective, Singapore’s continuous investments in infrastructure, commitment to sustainability and reputation for innovation make it an attractive destination for global business events.