Tourist inflow slows down in November, affecting overall hotel revenue despite higher room rates.
SINGAPORE – The average room rate (ARR) for Singapore hotels edged up to S$273.11 in November, marking a 0.5% increase from October’s S$271.71, according to data released by the Singapore Tourism Board (STB) on Monday. Year-on-year (yoy), the ARR rose by 1.2%, signaling a steady recovery in hotel pricing.
However, the overall room revenue dipped to S$430.4 million, down from S$440.1 million in October, even as it posted a 7.4% yoy growth. The decline in revenue coincided with a 6.1% monthly drop in tourist arrivals, which fell to 1.2 million in November, compared to 1.3 million in October. Despite the dip, visitor arrivals were 12.2% higher year-on-year, pushing the year-to-date total to 15.1 million, surpassing the lower end of the STB’s full-year projection of 15 to 16.5 million visitors.
Hotel Metrics and Performance
Key performance indicators painted a mixed picture:
Revenue per available room (RevPAR): Increased 5.7% yoy to S$224.45, though it slipped 1% from October’s S$222.28.
Average occupancy rate: Rose to 82.2%, slightly higher than October’s 81.8%, and 3.5 percentage points above November 2023 levels.
Available room nights: Declined marginally to 1.9 million, down from nearly 2 million in October but up 1.7% yoy.
Across hotel segments, performance varied. Upscale and economy hotels saw slight gains in ARR, while luxury and mid-tier hotels experienced small declines. Notably, the upscale segment ARR rose to S$322.28 (from S$318), and the economy segment ARR climbed to S$139.65 (from S$134.46).
Tourist Arrivals by Source
In November, Indonesia overtook China as the top source of visitors, with 194,441 arrivals, up from October’s 183,714. However, other key markets saw declines:
China: Visitor numbers fell to 174,748 from 234,527 in October.
Malaysia: Recorded 101,918 arrivals, slightly down from 103,432.
India: Numbers dropped to 92,902, compared to 102,228 in the previous month.
Australia: Fell to 92,661, down from 100,935 in October.
Year-to-Date Overview
From January to November 2024:
ARR: Rose 1.9% yoy to S$279.74.
RevPAR: Increased 3% yoy to S$230.44.
Room revenue: Grew 11.8% yoy to S$4.9 billion.
Occupancy rate: Improved to 82.4%, up from 81.5% in the same period of 2023.
Outlook
While November saw slower tourist inflow from key markets, industry experts remain optimistic, citing strong overall recovery trends in Singapore’s hospitality sector. The STB’s year-end projections highlight resilience, with ARR and RevPAR consistently improving yoy. As Singapore continues to attract international travelers, the focus remains on maintaining competitive pricing and adapting to changing tourism dynamics.
