Hospitality Industry in Singapore - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Hospitality Industry in Singapore - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Singapore has been recording a rising number of travelers from the past decade. In 2009, the total number of international arrivals was around 9.6 million which almost doubled in 2019 to approximately 19.1 million. According to a report by DBS Bank, there has been a gap in the supply of hotels or different forms of accommodations to match the growing number of travelers to the country. The total number of visitors per country is growing at an average of 6% from the past 10 years whereas, the hotel room supply is growing at only 4.2% especially in the past four years which is challenging the tourism industry in the country. However, in order to reduce this gap, the country is making efforts to increase its hotel project construction pipeline which holds various projects which are at different stages of construction of which more than 90% of new hotel rooms are slated for opening in 2021-2023 are upper-midscale and luxury hotels. Also according to the latest rankings of ease of doing business, by World Bank in 2019, Singapore has been ranked second in it which further explains the opportunity for hotel industry expansion.

Key Market TrendsRising Number of International Visitors are Driving the Market

The number of international tourist arrivals to Singapore has been increasing since 2000 with only 3 instances of contraction which were short-lived. Even with increasing competition from Indonesia, Vietnam and, Thailand, the number of visitor arrivals to the country is expected to be moderate and continue to grow at healthy rates in the forecast period owing to the Singapore Tourism Board’s (STB) marketing campaigns to attract tourists from various locations across the world. For instance, STB has proved successful in attracting tourists from tier – II and tier – III cities of China.

Key Players are Focusing on Innovative and Package Customisation to Attract More Customers

Singapore is greatly seen as a holiday destination and is been recording a high number of leisure travels. More than 55% of the travelers are visiting the country for leisure trips which are followed by business travel at 11%. Even with the fluctuating occupancy rates over the past 10 years the region has been recording rising revenue per room year on year which is making the region a better opportunity for investors. According to Wyndham Hotels & Resorts, the firm is going with the new strategy which focusses more on Singapore serving as a major business hub in mind. The firm is planning to host numerous group events throughout the year by fulfilling the fundamental demands of the corporate groups that are shifting drastically away from the traditional conference settings by being the one-stop- solution to provide work-related meeting space along with providing play and relaxation for visitors.

Competitive Landscape

The hotel and accommodation sector in Singapore is a combination of homegrown players and international players. Most of the hotels are strategically located in places that are highly preferred by tourists. The region holds good demand for hotels as the supply is little less than the demand. With the co-operating government policies, the region is an attractive one for the investors.

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• The market estimate (ME) sheet in Excel format
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