Growth in room rates and tourist numbers signals positive recovery for Singapore’s hospitality sector
Singapore’s hotels saw a rise in the average room rate (ARR) in February, reaching S$298.47, a 6.7% increase from January, as international tourist arrivals showed a slight improvement. The ARR growth reflected both seasonal effects from Chinese New Year and the implementation of a visa-free scheme between Singapore and China.
Tourist arrivals in February totaled 1,436,571, slightly higher than the previous month’s 1,436,411, with China overtaking Indonesia as the top source of visitors. The hotel sector also recorded a 7.3% rise in overall room revenue, reaching S$453.8 million. Other key metrics, such as revenue per available room (RevPAR) and average occupancy, also demonstrated strong performance.
For the year-to-date, the ARR has grown by 5.9%, signaling continued recovery, and the overall room revenue surged 31.3% from last year. While Chinese arrivals showed a significant jump, experts remain cautious due to China’s economic slowdown and regional competition. Nonetheless, Singapore’s tourism industry is expected to continue its upward trajectory, with the Singapore Tourism Board forecasting 15 to 16 million visitors in 2024.
