(Singapore, 1st October 2024) In August, the average room rate (ARR) of hotels in Singapore increased compared to the previous period, as per data from the Singapore Tourism Board (STB), despite a decline in international visitor arrivals. However, other key indicators in the hotel industry recorded a decrease.
ARR in August picked up 1.7 per cent to S$282.26, from the preceding month’s S$277.55. It was mostly flat on the year, down a marginal 0.1 per cent from August 2023’s S$282.52.
In contrast, overall hotel room revenue, revenue per available room (RevPAR), and average occupancy rate experienced slight declines compared to the previous month, even as these indicators were up year on year.
These came as tourist arrivals fell 3.9 per cent to 1.54 million, from July’s 1.6 million, but jumped 17.3 per cent from the year-ago period’s 1.31 million.
Overall room revenue, at S$488.1 million, was slightly lower than the year-to-date high of S$490.4 million in July. But it grew 7.9 per cent against the year-ago takings.
The RevPAR and average occupancy rate in July also retained their peak for the year.
RevPAR in August dipped to S$247.56, from S$248.72 in the preceding month. It was up 1.5 per cent from the year-ago period, where RevPAR was S$243.93.
The average occupancy rate slipped to 87.7 per cent in August, from 89.6 per cent in July. But the latest reading is still higher than August 2023’s 86.3 per cent.
Andrew Phua, Chief Representative and Executive Director of Greater China at the Singapore Tourism Board, revealed on September 11, 2024, that the rise in the number of visitors in Singapore before was led by the 30-day mutual visa-free arrangement, enabling Chinese travelers to plan trips to Singapore on short notice.
From January to July, Singapore welcomed 1.86 million visitors from the China, a year-on-year increase of 183.6 percent and reaching 84.5 percent of 2019 levels.
“July, which marks the start of summer vacation, also saw strong performance, with the number of visitors to Singapore exceeding that of 2019,” Phua said.
Rates also picked up across most hotel categories month on month. ARR increased to S$659.75 (from S$639.67) in the luxury segment, S$331.32 (from S$321.54) in the upscale segment, and S$212.28 (from S$211.97) in the mid-tier segment. In the economy segment, ARR was largely similar to the preceding month, edging down to S$148.25, from S$148.45 before.
In the year to date, Singapore’s ARR was up 2.3 per cent year on year to S$279.10. Overall room revenue, at S$3.6 billion, grew 15 per cent. RevPAR increased 3.2 per cent to S$229.96, and the average occupancy rate ticked up to 82.4 per cent, from 81.7 per cent in the corresponding period last year.
