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The increase is buoyed by “significant” investments into the travel market.
American Express Global Business Travel (GBT) expects hotel room rates in Singapore to increase by two percent in 2020, after the entry of “significant” investments into the travel market, reported The Business Times.
In its Hotel Monitor 2020 report, the travel management company noted that these investments – which include the multi-million dollar expansions of Resorts World Sentosa and Changi Airport – are forecasted to increase tourism as well as the meetings, incentives, conferencing, exhibitions (MICE) business into the country.
GBT Singapore and Thailand general manager Sanghamitra Bose expects room rates to “remain stable”, with the forecasted two percent hike accounting for inflation.
Meanwhile, hotel room rates in the Asia-Pacific region are also predicted to grow, with Ban galore witnessing the biggest hike at five percent, followed by Tokyo and Hong Kong at four percent and three percent, respectively.
Other market expected to post a two percent increase include Ho Chi Minh City, Bangkok, Melbourne, Shanghai and Kuala Lumpur.
GBT also noted a rise in domestic travellers, offsetting the drop in international visitors due to a less optimistic global economic outlook.
And despite signs of the global economy facing challenges, the number of people travelling for leisure and business remain on the uptrend, said GBT vice president of global business consulting Joakim Johansson.
“But, in most cities, a full hotel development pipeline means this sustained level of demand will not feed into big rate rises,” he added.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
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