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Singapore’s average hotel occupancy rate slipped by 0.7 percentage point to 83 percent in Q2 2015, reflecting its lowest level since the last quarter of 2009, according to the latest data from the Ministry of Trade and Industry.
At the same time, revenue per available room (RevPAR) fell by 6.5 percent to below S$200.
Meanwhile, gross lettings in the hospitality sector increased at faster pace of 5.4 percent versus 2.4 percent in Q1 2015 thanks to higher overall room supply, which helped push down the average cost of rooms.
The agency revealed that the lacklustre figures is due to total visitor arrivals dipping by 0.5 percent to 3.62 million in the second quarter from 3.64 million recorded in Q2 2014.
In particular, there were fewer inbound tourists from key markets like Australia, Hong Kong and Indonesia with the number dropping by 7.5 percent, 8.9 percent and 12 percent year-on-year respectively.
Nonetheless, the number of guests from Mainland China soared by 40 percent rebounding from a decline of 8.6 percent in the first quarter.
“Weighed down by weak visitor arrivals, the accommodation & food services sector contracted by a faster 0.6 percent in the second quarter, compared to the 0.1 percent decline in the previous quarter,” said the agency.
On a quarterly and seasonally-adjusted basis, the industry suffered a decline of 1.4 percent year-on-year in Q2, an improvement from the 6.5 percent contraction in Q1 2015.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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