Commentary: When will tourist arrivals in Singapore fully recover?


IS SINGAPORE EXPENSIVE TO VISIT?

It is not unusual for tourists these days to complain about how Singapore is an expensive place to visit. Recently, an American TikTok user lamented that she spent more than US$9,000 on a five-day trip to Singapore, including US$1,200 a night for her hotel room. 

Her post triggered a wave of criticism from netizens, who pointed out that there were a lot of cheaper alternatives. Her post may have touched a nerve, but it highlights the perception of the city as an overpriced destination.

A hotel room in Singapore now costs on average S$280 (US$211) per night, based on Singapore Tourism Board data from the first half of 2024. The average hotel room rate increased by 32 per cent compared to the same period of 2019.

This has been met with a corresponding dip in occupancy rates, which fell from about 85 per cent in the first half of 2019 to 80 per cent in the first half of 2024.

With accommodation costs climbing, Singapore risks pricing out budget-conscious travellers. Although the cost of other items typically purchased by tourists have also increased, affordable options remain for many of these including food, transport and attractions. Therefore, steep hotel rates may prove to be the main impediment to fully recovering Singapore’s tourism sector.

Singapore has announced a series of big investments this year to help its tourism sector amid intensifying global competition. For example, Singapore will get its own Porsche Experience Centre near Changi Airport by 2027 and plans are also in place for a four-hectare waterfront wellness enclave at the Marina South Coastal site.



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