Bookmark & Share
Data from Singapore’s tourism board showed that average occupancy rates of Singapore hotels reached 93.8 percent in July, the highest since 2005, and up from 92.5 percent from last year.
Hotel occupancy rates in Singapore reached their highest in over a decade, as business events and travellers switched from Hong Kong, where protests have affected tourist numbers and business sentiment, reported Thomson Reuters.
Data from Singapore’s tourism board showed that average occupancy rates of Singapore hotels reached 93.8 percent in July, the highest since 2005, and up from 92.5 percent from last year.
The same data also revealed the highest revenue per room was reached in almost four years. Hoteliers and analysts said the trend was helped by conferences switching from Hong Kong, as protests that began in mid-June became increasingly violent.
“Singapore may benefit twice as much from the Hong Kong fallout as both these destinations share similar traits,” said DBS analyst Derek Tan.
The migration has been picking up as of late.
Marcus Hanna, general manager of Swissotel The Stamford and Fairmont Singapore revealed that he had a 60-member business group last month switch from Hong Kong.
He said that his hotels, which offer meeting and conference facilities, have received several inquiries from companies wanting to move events out of Hong Kong amidst the pro-democracy protests.
On the other hand, the Global Wellness Summit, a large gathering of around 600 beauty and health industry delegates scheduled for mid-October, said that it was moving from Hong Kong to Singapore.
Jefferies analyst Krishna Guha believes the events in Hong Kong was a factor in lifting Singapore’s hospitality sector.
Revenue per available room grew to $203.70 in July, up from $200.20 in July 2018 and its highest since October 2015.
He said the ongoing protests would have weighed on the summer travel plans of tourists, while other factors included a weaker Singapore dollar and tightening hotel supply within the city-state during the peak season for North Asian travellers.
Over in Hong Kong, airports suffered repeated disruptions due to the protests and hotel operators posted booking cancellations and lower occupancy rates.
“The outlook remains bleak for September and the rest of the year for destination Hong Kong. There are now spillover effects…with both leisure and business travellers opting to travel to Singapore instead of Hong Kong,” said Alicia Seah of travel agency Dynasty Travel.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email victorkang@propertyguru.com.sg
Related Articles:
Singapore trumps Hong Kong as Asia's most valued brand