Hotel room crunch looms in Singapore
THERE is an imbalance between the forecast for tourist arrivals and the supply of hotel rooms in Singapore, Chesterton Singapore said in a report released yesterday.
"Our projections revealed that hotel occupancy will remain extremely tight, rising from 80 per cent to 91 per cent from this year to 2018.
"We will expect hoteliers to raise room rates, given the severity of the hotel room crunch developing here," it said.
"We strongly suggest that the Government review its policy and release more hotel sites for sale under the government land sales programme sooner, rather than later."
Singapore's tourism growth trend looks set to continue in the coming decade, underpinned by new attractions - including Madame Tussauds Singapore and the Trickeye Museum in Sentosa, the Singapore Sports Hub and the National Arts Gallery - as well as events such as the Women's Tennis Association Championship from this year till 2018, and next year's SEA Games, which Singapore will host.
A strong line-up of conferences and exhibitions will also support the growth of business and Mice (meetings, incentives, conventions and exhibitions) travellers to Singapore, the consultancy noted.
But the 2014-2018 hotel pipeline is expected to be just 11,147 rooms, equivalent to 20 per cent of the existing stock of 54,962 licensed hotel rooms as of last year. Most of this new hotel supply is expected to come on stream this year and next.
"As it is, Singapore's hotels were ranked among the...most expensive in Asia... The future crunch in hotel rooms would only serve to amplify this," Chesterton said.
Incentives could be given to hotels to expand their current capacity where possible, it suggested.
THE BUSINESS TIMES