SINGAPORE: Hotels in Singapore suffered a 1.9% decline in average daily rate due to an overall slowdown in the economy according to STR’s preliminary data for May.
However, hotel occupancy was steady, but it came at the expense of lower rates.
Singapore’s tourism remains buoyant driven by Chinese arrivals. Tourism growth so far this year is in the 14% bracket.
inside no 5Business travel has suffered possibly due a drop in demand in key support industries linked to oil and gas, a slowdown in logistics and retail consumer goods.
Based on daily data from May, Singapore reported the following in year-over-year comparisons: Increases in supply (+2.3%) and demand (+3.0%); 0.7% increase in occupancy to 80.5%; 1.9% decrease in average daily rate (ADR) to SGD274.63; and 1.2% decrease in revenue per available room (RevPAR) to SGD221.05.
According to STR analysts, Singapore’s decline in ADR can be attributed to an overall slowdown in economic growth.
However, arrivals to the market remain strong, up 14.1% year to date through April, according to the Singapore Tourism Board. As a result, occupancy levels continue to grow, albeit marginally.
