# data[].attributes.body
1. The group has described adequately the impact of the Pandemic on the economy.
2. Supporting statistics on the major economic indicators were highlighted well.
3. However, the group may have to discuss further the direct implications on the hospitality industry sales, employment.
4. The incentives provided by the government were highlighted well too.
5. You may also want to discuss the contribution of the hospitality industry to the economy during pandemic outbreaks.
6. You may condense the key points from micro and macro and prepare your PowerPoint Slides.
Cheers!
Josh

# data[].attributes.attachment_link.readable_text
(Updated: )
Share this content

SINGAPORE: Singapore's labour market is likely to bottom out by the end of this year, but the recovery will be uneven, said economists.

According to figures released on Friday (Oct 30), the country's unemployment rate rose to 3.6 per cent in September from 3.4 per cent in August.

The number of layoffs this year added up to 20,450 so far. Total employment shrank by another 26,900 in the third quarter after a record decline of 103,800 in the preceding quarter.

While the overall unemployment rate went up, it rose at a slowerrate compared to previous months, and local employment grew by about 50,000.

Meanwhile, advance gross domestic product (GDP) estimates published earlier in October showed that the economy shrank at a slower pace of 7 per cent in the third quarter from the same period last year, compared to the 13.3 per cent contraction in the second quarter.

On a quarter-on-quarter seasonally adjusted basis, the Singapore economy expanded by 7.9 per cent in the third quarter, rebounding from the 13.2 per cent contraction in the preceding quarter.

These figures show that the unemployment rate is close to reaching its peak - likely to be in the fourth quarter, said DBS senior economist Irvin Seah.

Labour numbers typically lag behind the growth cycle by about one to two quarters, he said.

Although unemployment has gone up, he added that the "pace of deterioration in the labour market is moderating", especially as policy measures on creating jobs and preventing job losses have been gathering momentum. Job losses in the coming months will be less than the previous two quarters, said Mr Seah.

Still, growth in the labour market may not come so soon, economists cautioned. They expect the labour market to stabilise but stay sluggish after it hits bottom.

"Until ... something like the vaccine can make a difference is widely available (then) some of these labour-intensive sectors will have a bit more confidence in hiring workers again," said Bank of America economist Faiz Nagutha.

"Employers will remain cautious in their hiring - they will only start to increase their headcount when they see more pronounced improvement in their business earnings," added Mr Seah, who thinks conditions will flatline until the middle of next year.
UNEVEN RECOVERY
The Monetary Authority of Singapore also warned on Wednesday that recovery in the jobs market would be protracted, and there would be further strain to labour demand going into 2021.

Analysts expect that the labour market will rebound unevenly - or what is known as a "K-shaped" recovery. Sectors that have been resilient will continue to hire, while the rest shed their workforce.

For instance, industries like technology, pharmaceuticals, financial services and electronics have outperformed the economy, largely due to demand for work-from-home tools and services as well as active pharmaceutical ingredients.

A DBS report released on Wednesday projected that while GDP growth for this year is expected to come in at -6.0 per cent, performance across sectors is considerably disparate, from -34.0 per cent in the hotels and restaurants sector to 7.5 per cent in financial services.

Employment data also highlighted the disparate nature of the economic impact.

Jobs were lost in nearly all industries in the second quarter of this year, but employment contracted much less in sectors that were stable, and even went up in the insurance and electronics manufacturing.

Unfortunately, the industries that are doing better right now are ones that are less labour intensive and might not be able to absorb that many workers who lost their jobs, said Mr Nagutha.

On the other hand, industries that have been badly affected mostly hire front-facing workers that command a lower salary, said Mr Seah, who called the pandemic a "highly regressive event".

He referred to a separate report he and his colleagues published in August, which looked at the income earned by 1.2 million DBS retail customers. They found that 26 per cent of Singaporeans and permanent residents aged between 25 and 70 saw their incomes fall by at least 10 per cent in May.

Those earning S$2,999 or less made up 49 per cent - the largest percentage - of customers whose income fell by at least 10 per cent. Among this group, about one in two saw their incomes declining by more than half.

Sector-wise, the bank found that 81 per cent, 76 per cent and 50 per cent of customers in the aviation, hospitality and food services sectors respectively saw their incomes cut in May as compared to the average 24 per cent of customers in other sectors.

A K-shaped recovery could cause the income gap to widen and stall gains made by low-wage workers in the past five years, said Mr Nagutha.

He noted that between 2014 and 2019, the wages of residents in the bottom 20th percentile in Singapore grew at a faster rate of 4.4 per cent than those earning a median wage, which grew at 3.8 per cent.

"This process could stagnate, or even reverse itself," Mr Nagutha said.

Even if demand for dining out or shopping returns at substantial levels, many workers may not get their old jobs back.

For one, there have been caps on capacity, he said, citing safe distancing measures in place at food outlets.

"So at best, restaurants are in fact 60 per cent of what they used to do, 70 per cent of what they used to do. So you still have the 30 per cent," he said.

"Perhaps you kept the workers because of the jobs support that the Government gave, and that's going to wind down. Do you redo your math and say 'okay, maybe do I still need the 30 per cent excess that I kept'. You may continue to shed that even as you are getting more people in."

Businesses might also be reluctant to hire for fear of a new round of restrictions if there is another surge in COVID-19 cases.

Given that the pandemic has accelerated the use of technology, these labour-intensive businesses might have adopted digital tools and services that are able to replace some workers.

But observers said authorities have taken note of the gaps in the jobs market. One of the main priorities under the S$100 billion COVID-19 stimulus package has been to save jobs and introduce new ones.

More than S$21 billion has been given out so far under the Jobs Support Scheme - a 17-month wage subsidy programme to help firms stay afloat and encourage them to keep their employees.

Another wage subsidy scheme, the Jobs Growth Incentive which is aimed at encouraging firms to hire more locals started in September.

Without these handouts, the number of layoffs could have ballooned much more than what it is today, the analysts said.

There is also the SGUnited Jobs and Skills package aimed at creating more than 100,000 job and training openings, particularly for those who have been laid off.

"If we look at the kinds of opportunities available, especially when the skills do not match those that are in line with the changing trends ... the Government is trying to address this (skills gap) with various training opportunities," HL Bank's senior treasury strategist Jeff Ng said.

Singapore also has the competitive advantage to tap global economic trends, he added, pointing to the development of 5G technology, as well as the country's position in the growing Asia-Pacific region - particularly China, which saw its GDP expand by 4.9 per cent in the third quarter while most other economies contracted.

However, he said the challenge remains in whether workers here have the right skills to cope with changes that are coming on quickly.

"I think during normal times, there could be a slow transition from the lower value-added economy towards a more higher value-added one, and definitely there's a lot of time for workers to slowly train and adapt to these changing conditions," Mr Ng said.

"But at this current moment ... the pace of change (is) at least five to 10 times more."

Mr Nagutha said that the Government could in the meantime, dole out more financial assistance to those who are unemployed so that there is better job matching.

"We certainly do not want to encourage people to stop looking for jobs and stay unemployed, but we also want to make sure that people don't feel rushed into taking anything and everything that comes along," he said.

Download our app or subscribe to our Telegram channel for the latest updates on the coronavirus outbreak: https://cna.asia/telegram
"If you wait for one more month, and you can get a better job, a better fit, you should be waiting for one more month," he added, suggesting that such a policy could be time-bound to prevent abuse.

# data[].attributes.attachment_link.title
Singapore's labour market could bottom out by end-2020, but uneven recovery may widen income gap: Analysts

# data[].attributes.attachment_link.description
(Updated: ) Share this content SINGAPORE: Singapore's labour market is likely to bottom out by the end of this year, but the recovery will be uneven, said economists. According to figures released on Friday (Oct 30), the country's unemployment rate rose to 3.6 per cent in September from 3.4 per cent in August.

# data[].attributes.body
- When covid has not hit Singapore, there were just under 75,000 unemployed Singaporeans and Permanent Residents at the start of 2020.
- In 2020, the number of layoffs reached 20,450, more than tripling from 3000 in the first quarter of 2020 to more than 9000 in the third year.
- By September 2020, the figure had risen to more than 110,000 as a result of unemployment. The unemployment rate in Singapore increased to 3.6 percent in September, up from 3.4 percent in August 2020.
- In August, They found that 26 percent of Singaporeans and permanent residents aged between 25 and 70 saw their incomes fall by at least 10 percent in May 2020. Among the income earned by 1.2 million DBS retail customers.

- Employers will be cautious in the face of the ongoing pandemic, and will only begin to increase headcounts/employees when they see more pronounced improvements in their business earnings. Mr. Seah, a senior economist at DBS, stated. This is especially true for industries that have taken the brunt of the pandemic's toll. For instance, consider the hospitality and aviation industries.
- According to DBS, economic growth in the hotel and restaurant sector fall by 34% in 2020.
- In May, 76 percent of customers in the hospitality sector saw their incomes cut, compared to an average of 24 percent of customers in other sectors, according to DBS bank.
- According to Ministry of Manpower data from the second quarter of 2020, the accommodation industry saw a 4.5 percent decrease in employment.
- Based on these statistics, we can conclude that the COVID-19 pandemic had a significant impact in such sectors especially the hospitality industry, resulting in employment laid off and pay cut.

- Despite the ongoing pandemic, the technology and electronics sectors have outperformed the economy due to increased demand for work-from-home tools and services. Such sectors will result in an increase in the GDP of the respective sectors.
- However, because these industries are less labor-intensive, they may be unable to absorb as many workers who have lost their jobs. "Mr. Nagutha," he said.
- If labour market were to recover in a disparate manner with covid-19 worsen, This may result in greater income equality.
-According to analysts, the labor market will recover unevenly, resulting in a "K-shaped" recovery. Sectors that have proven to be resilient will continue to employ, while others will reduce their workforce.
- People earning S$2,999 or less made up 49 percent - the largest percentage - of those whose income dropped by at least 10%. One in every two people in this group saw their income fall by more than half.
- Despite the fact that lower-wage income residents in Singapore grew at a faster rate than the average Singaporean from 2014 to 2019. However, because this group of workers is more likely to work in front-facing jobs with lower pay in affected industries, covid-19 will have a greater impact on them. Income equality will reflect this.

To summarize, Covid-19 has caused a significant economic downturn, resulting in cyclical unemployment. With a lack of jobs during the lockdown due to businesses closing, jobs disappearing, and fewer jobs were available during the pandemic, the business cycle is at a recession state with the unemployment rate rising in 2020 after the pandemic hit Singapore, particularly in the hospitality industry.

Part-time, discouraged, and underemployed workers, on the other hand, would be unaccounted for in the unemployment figures. As a result, the number of unemployed individuals may have been higher. Hence, the government is implementing measures in order to assist the citizens who are unemployed in Singapore.

# data[].attributes.headline
4. Government support: Singapore Resilience Budget

# data[].attributes.subject
4. Government support: Singapore Resilience Budget

# data[].attributes.body
Below are some of the supports given by the Singapore government under Singapore Resilience Budget which directly benefit the hospitality industry and help them to survive during the pandemic.

a) Property Tax Rebate:
- Certain qualifying commercial properties which includes hotels, restaurants, recreation centers, serviced apartments, will pay no property tax throughout 2020.
- Landlords are to pass on the full rebate to tenants by reducing rentals, ease the pressure faced by the tenants.
- This is considerably increase Property Tax Rebate.

b) Defraying of Enhanced Cleaning Cost of Qualifying Hotels with suspected or positive COVID-19 cases:
- Singapore Tourism Board cover up to 50% of third-party professional cleaning fees for Singapore-licensed hotels that provided accommodation to suspected and confirmed COVID-19 cases.
-There will be an amount of S$20,000 for each hotel with confirmed cases, and S$10,000 for each hotel with suspected cases.

c) Enhanced Jobs Support Schemes:
- Singapore Government will provide further JSS to cover 75% of the first SGD4,600 of wages paid to local employees.
- 25% of gross monthly wages for all local employees, with higher threshold of 75% only for licensed hotels, travel agents, MICE operators, airlines and 50% for licensed F&B venues.

d) Enhanced Training Support Scheme:
- STB has enhanced support under the Training Industry Professionals in Tourism program for certified courses and courses for tourism-related skills, by increasing the support to a 90% cost-reimbursement for courses that commence between 1 March 2020 to 31 December 2020.
- This is to encourage companies to continue to innovate and train to upgrade their skills even though they are significantly affected by the pandemic.

# data[].attributes.attachment_link.title
COVID-19: Government support measures and risk management arrangements for the hotel industry

# data[].attributes.attachment_link.description
3) However, the COVID-19 Act does not affect other contractual rights of the banks or the financiers. For example, a bank may still be entitled to charge fees and interest for non-payment under the loan agreement.

# data[].attributes.attachment_link.title
Singapore's core and overall inflation rates stay negative in July; core inflation falls to decade low

# data[].attributes.attachment_link.description
Core inflation fell deeper into negative territory due to a steeper decline in the cost of electricity and gas, and lower inflation for non‐cooked food. . Read more at straitstimes.com.

# data[].attributes.body
- Falling price observed with the negative figure in the latest quarter as Singapore’s inflation has turned negative of -0.4 percent for the first time since end-2016.
- The consumer price index for all items = -0.4%
- Domestically, economic downcast and weak labor market conditions will decrease consumer demand, therefore limit price increases for discretionary goods and services.
- Demand-pull inflation pressures should remain soft through the rest of this year.
- Services cost also eased in July, at negative 0.8 percent compared with minus one percent the month before, as holiday expenses and airfares fell at a slower pace while the cost of telecommunication services rose more rapidly.

# data[].attributes.body
- The accommodation industry contributed 0.4% of Singapore's nominal GDP in 2020, according to the Department of Statistics Singapore.
- Real GDP actual growth contracted by 5.4% in 2020, however, recovery is expected in 2021 with an expansion of 5.1% as economic activities slowly resume when a city-wide immunization program is implemented which may result in increased consumer sentiment.

- Fall in Singapore's overall economy due to the impact of the Covid-19 pandemic which has resulted in stricter transactions of goods and services, traveling restrictions, and work-from-home.
- Due to the circuit breaker being launched, industries such as the hospitality industry had to face temporary closure as it was deemed as a non-essential workplace. This has led to a setback in domestic consumption as Singaporeans were not able to organize staycations.
E.g. On 7 April 2020; the government of Singapore implemented circuit breaker measures which was a stay-at-home order and cordon sanitaire as a preventive measure in response to the Covid-19 pandemic in the country.
- There was a notable fall in domestic consumption due to a domestic outbreak which has led to a lockdown.
- Based on the article written by the Ministry of Trade and Industry, it was shown that industries that relied heavily on international travel were the ones that were the most affected.
-To infer based on the article, many other services residing in the hotels also suffer huge losses such as the fnb in the hotels and the private hire sector as well.
-Due to the underwhelming amount of visitors, FnBs which offers banquet services, fine dining or dining within the hotel were forced to shut down as there was no foreign visitors and there were no weddings or mice events as well.
-The private hire sector suffered a huge loss as well as there was only domestic demand and there were no foreign demand from the airports to the various hotels.

- According to the Singapore Tourism Board (STB), international visitor arrivals increased for four consecutive years, hitting a peak of 19.1 million in 2019, before dropping by 85.7 % to 2.7 million in 2020 as a result of Covid-19 travel restrictions.
- The majority of international visitors travel to Singapore for vacations, making for 58% of all visitors in 2019. Following that are visits to friends and relatives 15% and general business purposes 9% and MICE 4%.
More over half of all visitors to the island state 51% are returning visitors.
- The performance of Singapore's hotel market is expected to decline in 2020. This can be attributed to Covid-19's lockdowns and travel disruptions. The market's overall occupancy fell by 30.1 percentage points, while the average room rate fell by 30.2 percent.
- Due to worldwide travel limitations, Singapore has pushed domestic tourism inside the island state through a variety of programs, including SingapoRediscovers coupons and other marketing efforts.
- Singapore has maintained a healthy pipeline of events in recent years, ranging from international congresses to regional conferences, as a key corporate events destination in Asia Pacific. Singapore has been chosen to host many high-profile events in 2021, despite the Covid-19 epidemic. This includes The ATP World Tour 250 events in February, the IISS Shangri-La Dialogue, and the World Economic Forum in August.
- This demonstrates event organizers' confidence and faith in Singapore's handling of the Covid-19 outbreak; moreover, Singapore is one of the fastest-growing countries in the Asia Pacific area in terms of vaccines administered per dosage.
- In terms of supply, HVS estimates that by 2022, there will be 10 branded hotels and serviced apartments in the pipeline, adding 2,276 rooms to the market. The hotel industry in Singapore is expected to benefit from robust supply and demand fundamentals, as well as a limited injection of supply, as the travel market recovers over the next several years.

# data[].attributes.attachment_link.readable_text
Key Highlights in 2020

The Republic of Singapore is a metropolitan city-state and island country in Southeast Asia with a total land area of an estimated 714.3 square kilometres. It is situated at the southern tip of the Malayan Peninsula, between Malaysia and Indonesia. With an economy supported by its growing population of approximately 5.7 million people, Singapore has witnessed remarkable record of sustained economic growth throughout the years and bolsters its role as a global commerce, finance and transportation hub.

Due to the impact of the Covid-19 pandemic, Singapore's overall economy contracted by 5.4% in 2020. Although the services sector contracted by 6.4% in 2020, the services sector is forecasted to remain the largest contributor to Singapore's Gross Domestic Product (GDP) from 2021 to 2025. The recovery is projected to be led by financial services and logistics activities.

Tourism remains an important pillar in driving economic growth in Singapore. According to the Department of Statistics Singapore, the accommodation sector contributed 0.4% to Singapore's nominal GDP in 2020.

In 2020, tourism arrivals have slumped to 2.7 million from 19.1 million in 2019 due to the travel disruption caused by Covid-19. Activity in the hotel investment has also been soft in 2020, with only two inbound hotel transactions, contributing to an investment volume of 539 million amidst the global economy uncertainty.

Economic Outlook

In 2020, the global economic growth was impacted by the Covid-19 pandemic which has resulted in countries going on lockdown and stock markets to plunge. Activities around the world had seemingly come to a halt with travelling restricted and work-from-home becoming a new normal. US-China political tension continues to be uncertain, along with the plans for Brexit. With growing uncertainties in the geopolitical landscape and global market pressures, international trade and investment activities have softened and is expected to remain subdue. According to the World Bank, global economic growth is projected to expand at 4% in 2021, albeit a slow recovery from 4.3% contraction in 2020.

Figure 1: Economic Outlook
Economic Performance & Outlook

Given the reliance of Singapore's economy on global economic outlook, the weakening of the global economy due to the Covid-19 pandemic has resulted in a 5.8% contraction in real GDP in 2020. Recovery is expected in 2021 with an expansion of 5.1% as economic activities gradually resumes and consumer sentiment improves with the implementation of a city-wide vaccination programme. Nonetheless, external demand is likely to remain weak as access to vaccine remains uneven in other parts of the world.

Currency Exchange Outlook

In April 2020, the Monetary Authority of Singapore (MAS) has set the rate of appreciation of the nominal effective exchange rate (NEER) policy band at zero percent per annum, starting at the then-prevailing level of NEER. Economist Intelligence Unit (EIU) expects the Singapore dollar to experience a marginal appreciation in 2021 on the back of a weaker greenback, reaching S$1.36:US$1 in 2021 compared to S$1.38:US$1 the year before.

Due to the pandemic, consumer price inflation has declined marginally by 0.2% in 2020. Moving forward, EIU expects inflation rate to increase to 1.6% in 2021, owing to partial recovery in consumer demand, as well as global energy and non-energy prices. EIU forecast that inflation will rise by an annual average of 1.3% in the next four years from 2022 to 2025. However, inflation for tourism-related services is projected to remain weak as restrictions on international travellers stays.

Interest Rates

As at December 2020, the 3-month Singapore Interbank Offered Rate (SIBOR) was recorded at 0.41%, a significant decrease from the previous year which recorded at 1.77% as of December 2019. According to EIU, the lending interest rate remained stable at 5.3%. The reduction in SIBOR is attributable to the rate cuts by the US Federal Reserve (Fed). In 2020, the Fed cut interest rates to near zero, and has brought about USD120 billion in government-backed debt to cushion the pandemic's impact on businesses.

Infrastructure Developments

2021

TEL Phase 2: Addition of 6 new stations from Springleaf to Caldecott.

New Museum of Ice Cream Singapore in Dempsey area will feature multi-sensory installations themed around the dessert. The attraction is slated to open in the second half of 2021.

New adrenaline ride, Slingshot, located in Clarke Quay next to current attraction GX-5 Extreme Swing. The Slingshot will be the tallest in Asia and see riders being catapulted almost 70-metres into the air, reaching a speed of 160-kilometres per hour.

2022

TEL Phase 3: Addition of 13 stations to provide direct access to the CBD and Marina Bay, from Mount Pleasant to Gardens by the Bay.

Sentosa-Brani Master Plan Phase 1: Addition of Sentosa Sensory, a linkway connecting Resorts World Sentosa and the southern beaches.

Mandai Eco-Tourism Phase 1: Opening of the new Bird Park.

New SkyHelix Sentosa, an open-air rotating gondola that will ascend 35-metres above ground and offer views of Singapore's southern coast.

2023

TEL Phase 4: Addition of 8 stations connecting Founders' Memorial to Bayshore.

2024

Extension of Downtown Line with two stations - Xilin and Sungei Bedok. Enable direct connection to East-West Line and TEL.

Mandai Eco-Tourism Hub: new Rainforest Park and eco-resort.

NEL: Addition of New Punggol Coast Station.

Beyond 2024

CRL Opening: Including 12 stations from Aviation Park to Bright Hill.

Greater Southern Waterfront (Next 5-10 years).

Ongoing revitalization of Orchard Road to enhance its attraction as a lifestyle destination.

4-km RTS Link from Woodlands North to Johor Bahru, Malaysia expected to be operational in 2026.

4-km CCL6 will close the loop with the addition of 3 stations, connecting Harbourfront to Marina Bay.

Jurong Lake District Tourism Hub will feature a commercial node, mixed use precinct, complementary leisure and recreational precinct, and International Business Park.

24-km JRL to complete in 2028.

Marina Bay Sands expansion to add 15,000-seat indoor entertainment arena and a fourth tower which will feature about 1,000 all-suite hotel rooms and other facilities.

Resort World Sentosa to add Minion Park and Super Nintendo World to Universal Studio. It will also add a new waterfront lifestyle complex and two new destination hotels with up to 1,100 rooms.

Sentosa-Brani Master Plan will roll out in phases over two to three years, featuring five distinct zones: Vibrant Cluster, Island Heart, Waterfront, Ridgeline and Beachfront.

Changi Airport Terminal 5 with a handling capacity of 50 million per annum (delayed beyond 2030 due to COVID-19).

Figure 2: Infrastructure Developments
Source: HVS, Land Transport Authority

Singapore Tourism Landscape

International Visitor Arrivals

According to Singapore Tourism Board (STB) figures, international visitor arrivals has increased for four consecutive years to reach a record of 19.1 million in 2019 before decreasing by 85.7% to 2.7 million in 2020 due to the travel restrictions brought about by Covid-19.

In 2020, overnight visitors number decreased by 85.1% from approximately 15 million visitors to 2 million visitors. Exhibiting a similar trend is the number of visitor days, which has decreased by 81.7% from approximately 64.1 million days to 11.8 million days.

Figure 3: International Visitor Arrivals (2015-2020)

Purpose of Visit

With favourable weather all year round and the range of tourism offerings, majority of the international travellers visit Singapore for holiday purposes, making up 58% of the visitors in 2019. This is followed by visiting friends and relatives (15%) and for general business purposes (9%). More than half (51%) of the total travellers are repeat guests to the island state.

Figure 4: Purpose of Visit (2019)
Source: STB
*2020 data is not available at the timing of writing

International Source Market

In 2020, Indonesia overtook China as the top international source market. This may be attributed to the restrictions imposed on Chinese visitors when the Covid-19 strain was first recorded in China in December 2019. All international source markets recorded double digit decline in arrivals, marking 2020 as the lowest performing year in terms of visitor arrivals to Singapore.

The top five international source markets to Singapore in 2020 were: Indonesia (16.6%), China (12.9%), Australia (7.5%), India (6.4%), and Malaysia (5.6%). The five markets made up almost half of the total visitor arrivals to Singapore in 2020.

Due to the travel restrictions imposed globally, Singapore has encouraged domestic tourism within the island state through several initiatives, such as the SingapoRediscovers vouchers, and other marketing campaigns.

Figure 5: Top Five International Source Markets (2020)
Average Length of Stay (ALOS) increased by 1.3 nights, reaching 4.7 nights in 2020 due to the 14-day quarantine requirement as a result of Covid-19. As of YTD Q3 2020, tourism receipts stands at SGD4.4 billion, a 78.4% decrease from last year.

Figure 6: Average Length of Stay and Tourism Receipts (2019-2020)
Singapore Hotel and Branded Service Apartment Market

2020 is a quiet year for Singapore's hotel supply growth, the room supply only grew at 0.5%. HVS noted the opening of Dusit Thani Laguna Golf Resort, which added 198 rooms to the market. Properties such as lyf Farrer Park Singapore and The Clan Singapore which were supposed to open in the year were delayed due to the pandemic.

Moving forward, HVS tracks the opening of three branded properties in 2021, which will inject 638 rooms into the market. Between 2022 and 2025, an additional 2,334 branded rooms are expected to be added to Singapore's accommodation supply. The hotels slated to open are mainly positioned in the luxury and upscale segments.

In a bid to provide ample opportunities for developers to initiate additional supply of hotel rooms, the government periodically updates the list of hotel sites available for sale under the Government Land Sales (GLS). Only one site is available for hotel development under the 1H2021 GLS programme. The 1.02ha River Valley Road could yield up to 530 rooms and is estimated to provide 2,000 square metres of commercial space.

Hotels Opening in 2021:

Citadines Raffles Place Singapore, 299 keys

MGallery by Sofitel Bideford Hills Singapore, 166 keys

Citadines Connect City Centre, 173 keys

Hotels Opening in 2022:

Pullman Singapore City Hall, 350 keys

Raffles Sentosa Resort & Spa, 62 keys

Citadines Connect Rochester Singapore, 135 keys

Hotels Opening beyond 2022:

Edition The Singapore, 190 keys

Banyan Tree Mandai Park, 400 keys

Marina Bay Sands Resort, 1,000 keys

Notable Changes in the Hotel Landscape

Rebranding of 575-key Marina Mandarin to PARKROYAL COLLECTION on Marina Bay in late 2020

Former Le Meridien to reopen as 191-key Oasia Resort Sentosa in Q2 2021

Redevelopment of Pan Pacific Orchard, offering 347 rooms upon completion in 2021

Rebranding of 1,077-key Mandarin Orchard to Hilton Singapore Orchard by 2022

Figure 7: Singapore Hotel Rooms Pipeline (2021 to >2024)
Source: Urban Redevelopment Authority
*Planned refers to projects that are not yet under construction but have planning approvals, written and provisional

Singapore Hotel Market Performance

Singapore's hotel market performance has recorded a decline in 2020. This is attributable to the lockdowns and travel disruptions caused by Covid-19. Marketwide occupancy declined by 30.1 percentage points (p.p.) and Average Room Rate (ARR) decreased by 30.2%. Overall, RevPAR fell by 55.2%, the largest decline in the past four years.

Moving forward, with many countries still implementing travel restrictions, the tourism sector in Singapore is likely to be negatively impacted in the short-term due to its reliance on international visitors. Until a fully effective vaccine is proven, the uncertainty of resurgence in infections and reimposition of lockdowns will remain.

Figure 8: Singapore Overall Hotel Performance (2016-2020)

Source: STB
Note: On 29 January 2018, STB's hotel performance statistics from 1 January 2007 onwards have been updated based on the revised methodology. Therefore, the above chart should not be compared with previously published data.

Figure 9: Singapore Hotel Segment Performance (2020)

Though Singapore is not spared from the negative impacts of Covid-19, the industry managed to sustain itself by hosting essential travellers from regional green lanes, foreigners with air travel pass, quarantine guests and local staycation business.

Hotel Transactions and Investment

Hotel Investment Market Slowed in 2020

The Singapore hotel investment market has mostly been dominated by local investors. While no transactions were recorded in 2016, transaction volume picked up from 2017 to 2019. In 2019, the number of hotels transacted increased to twelve, with transaction volume spiking up to SGD2.57 billion, the highest over the past years.

However, in 2020, as the global economy has slowed, consumer sentiments have weakened, and the accommodation market was hit hard by travel disruption, the hotel investment market has been subdued with only two transactions in 2020.

Notable transactions in 2020:

403-key Novotel Clarke Quay at SGD375 million (SGD933,000/key)

197-key Somerset Liang Court at SGD163 million (SGD829,000/key)

Moving forward in 2021, the hotel investment market will possibly see more investment volume due to the recovery of investors' sentiments and the growing interest in hotel investment post-Covid.

Figure 10: Singapore Hotel Transactions (2016 - 2020)

Outbound Hotel Investment Volume Shrunk
Figure 11: Singapore Inbound and Outbound Hotel Transactions (2020)
In 2020, outbound investment by Singapore investors have shrunk in volume, decreasing from USD2.36 billion in 2019 to USD1.64 billion in 2020, representing a 30.5% decline.

Approximately 75.1% of the total outbound hotel investments were made in Asia Pacific, while 14.8% of investments were made in the Europe, Middle East and Africa (EMEA). The remaining 10.1% were made in the Americas.

Source: HVS Research & RCA

Figure 12: Outbound Hotel Transaction Market (2020)
Figure 13: Outbound Hotel Transaction Market (2020)
Covid-19 Timeline

Outlook

In 2020, Singapore witnessed its greatest decrease in international arrivals and worst hotel performance in recent years due to the travel restrictions brought upon by the Covid-19 pandemic. Singapore has recorded a decline of 30.1 p.p. in occupancy and a decrease of 30.2% in ARR, contributing to an overall dip of 55.2% in RevPAR. With many countries still implementing travel restrictions intended to control the spread of the coronavirus, the tourism sector in Singapore is likely to be negatively impacted in the short-term due to the lack of international visitor arrival. Until a fully effective vaccine is proven, the uncertainty of resurgence in infections and reimposition of lockdowns will remain.

As a prominent business events destination in Asia Pacific, Singapore has maintained a robust pipeline of events from world congresses to regional conferences in the past years. Despite the Covid-19 pandemic, Singapore has been selected to hold several high-key events in 2021. This includes the ATP World Tour 250 tournaments in February, the IISS Shangri-La Dialogue, and the World Economic Forum in August. This has demonstrated event organisers' confidence and trust in the way that Singapore has handled the Covid-19 spread, moreover, Singapore is also one of the fastest country in the Asia Pacific region in terms of vaccinated people per dose.

In terms of supply pipeline, HVS notes that there will be ten branded hotels and serviced apartments in the pipeline by 2022, which will add 2,276 rooms into the market. Hotel market in Singapore is expected to benefit from the robust supply and demand fundamentals with the limited injection of supply into the market over the next few years when travel market recovers.

In 2020, transaction volume in Singapore dipped to SGD539 million, the lowest over the past four years. This illustrates investors' reservation in hotel investment due to the ongoing uncertainty circling the global market and Covid-19 pandemic.

In a bid to bolster Singapore's tourism market, the Singapore government has established several travel green lanes. In addition, the STB has launched several initiatives such as the SingapoRediscovers vouchers to incite domestic tourism spending, and sealed marketing partnerships with companies such as Mastercard and Studio Dragon Corporation to promote Singapore.

Singapore will also see the development of new destinations such as the Greater Southern Waterfront and Jurong Lake District, and the rejuvenation of existing destinations such as Orchard Road and Mandai precinct.

Moving forward, Singapore's hotel market outlook is expected to be rocky in the short-term and will be dependent on the global recovery progress from Covid-19. Apart from measures to alleviate the immediate impacts, which include property tax waiver and license fee, the Singapore government will also continue to implement efforts to tide through the impacted periods such as the[email protected] facility being used to draw business travellers, and the topping up of SGD68.5 million into the Tourism Development Fund to support tourism enterprises amidst the pandemic. STB and relevant government agencies are also committed to fulfilling mid- to long-term tourism and national development plans to ensure that Singapore is set on the road of strong recovery when the situation improves.

# data[].attributes.attachment_link.description
The Republic of Singapore is a metropolitan city-state and island country in Southeast Asia with a total land area of an estimated 714.3 square kilometres. It is situated at the southern tip of the Malayan Peninsula, between Malaysia and Indonesia.

# data[].attributes.attachment_link.readable_text
A monopolistically competitive firm acts like a monopolist which means that the firm is able to influence the market price of its product by altering the kind of the product being offered.

Unlike in perfect competition, monopolistically competitive firms have products that are not perfect substitutes. As such a Holiday Inn Express product, which is different (or at least perceived to be different) from all other brands' product like Days Inn is available from a single producer.

Consumers have a clearly defined preferences and sellers attempt to differentiate their products from those of their competitors, the goods and services are heterogeneous. In the short-run, the monopolistically competitive hotel can exploit the heterogeneity of its brand so as to reap positive economic profit, this is a rate of return greater than the rate required to compensate debt and equity holders for the risk of investing in the hotel.

The lodging industry being a monopolistic competitive market has the following characteristics:

* Many sellers

* Differentiated products

* Multiple dimensions of competition

* Easy entry of new firms in the long run.

The characteristics are almost exactly same as in perfect competition, with the exception of heterogeneous products and that monopolistic competition involves a great deal of non-price competition (based on subtle product differentiation). This gives the hotel a certain amount of influence over the market, it can raise prices without losing all the customers, owing to brand loyalty.

Many sellers, today in the market we have different types of hotels like Days Inn, Hampton Inn, Holiday Inn Express, Baymont Inn and so on. When there are many hotels, getting them to act as one is difficult, monopolistically competitive hotels are assumed to act independently.

Since the products in monopolistically competitive markets are heterogeneous they are differentiated slightly, the product may not really be different although in trying to be a monopolist by advertising the fact the good is different it can convince people. Monopoly is fleeting, to fit the monopolistically competitive model, the hotels must make their decisions as if they had no effect on other hotels.

Multiple dimensions of competition make it much harder to analyze a specific industry, but the alternative methods of competition follow the same two general decision rules as price competition:

* Compare marginal costs and marginal benefits

* Change that dimension of competition until marginal costs equal marginal benefits

The last characteristic of a monopolistically competitive market must meet is that, long run barriers of entry must be relatively easy, there must be no significant entry barriers.

The implications of this market structure on pricing are explained as follows. In the long run equilibrium, a perfect competitor makes only a normal profit. The normal profit will attract new entrants, which would make some of the existing lodging establishment customers to defect, and its portion of the market demand curve for the existing lodging establishment would decrease. The existing lodging firm would try to protect its profits by increasing its expenditure on product differentiation and advertising to offset that entry of a new lodging establishment. These additional expenditures would shift its average total cost curve up and would continue till its profits disappeared and the new demand curve is tangent to the new average total cost curve. A monopolistically competitive firm can make no long run economic profit.

Long-run equilibrium of the firm under monopolistic competition

The lodging industry has also some unique characteristics different from the manufacturing sector that plays a role in pricing decisions. Unlike manufacturing facilities that can expand production/supply when demand increases, hotels have a set number of rooms (in the short term), and hence supply is capped (atleast in the short run). The second unique characteristic, lodging supply is perishable. Hotel stays cannot be inventoried for future use once an opportunity to rent a room has passed. Conversely tangible goods have a shelf life that is considerably longer, and can be sold at a later date. The third unique feature is that hotels have a substantial start-up capital requirement. Lastly, lodging operations encompass more complex production methods which are characterized as labor intensive, with intangible products, inseparable production and consumption functions, multiple locations, and variable levels of service quality and these service systems are less efficient than conventional industrial production methods, and hence has an impact on overall financial performance.

The concern of perishibility of lodging supply creates a sense of urgency regarding the execution of various marketing or yield management functions which reflects on pricing decisions. In order to understand the pricing, the hotel has to understand about sunk costs and subsidies, since hotels involve start up capital there is already sunk costs involved in operation. Standard & Poor, Lodging & Gaming Industry Survey states hotels typically seek to maximize revenues, profits and cash flow by finding optimal relationship between occupancy and room rates. Hence if the lodging establishment remains anchored with a fixed price it will forgo the opportunity cost of renting the rooms and will have to subsidize the empty rooms with the revenue collected from the rooms rented, thus reducing total profit.

The application of variable pricing and price discrimination is widely applied in the lodging industry to maximize revenue and profits since whatever distinguishing characteristic that enables one hotel to reap monopoly profits will be duplicated by competing firms. The competition will drive price down and, in the long run, the monopolistically competitive firm will make zero economic profit.

The non - price strategies to maintain or increase revenue for lodging products would be 'Barriers to Entry'. The economic theory behind barriers of entry postulates that in every market various structural constraints can impose disadvantages to entrants relative to incumbents. That is, the presence of barriers to entry result in fewer entries and there allows incumbent lodging products to enjoy above average profitability.

Barriers of entry can be classified as structural or behavioral. Structural barriers can be due to environmental factors and behavioral can be termed as controllable factors. Structural barriers include factors such as government approvals, capital requirements, technology levels and industry requirements. Behavioral barriers are mainly purposeful acts carried out by incumbent firms to prevent entry of potential competitors, the strategies could include such issues as patents, price undercutting, lobbying, lawsuits, product proliferation, exclusivity agreements with suppliers and distributors.

The presence of high entry barriers inhibit competition from entering the market, increase and incumbent lodging products rate of growth, improves the lodging products market share, and increase the incumbent lodging firm's profits by allowing then to charge higher prices or achieve greater asset efficiencies.

If the lodging firm has to remain competitive in this market structure, it will have to differentiate itself by making use of its existing and most expensive resource labor, more productive, lets take the example of Fairfield Inn a lodging product by Marriott which can be used by individual lodging firms to succeed. In 1987 Marriott launched Fairfield Inn into the economy limited-service motel industry, a sector saturated with excess rooms and with low 55% occupancy rates. Marriott wanted to gain market share quickly by creating an enhanced service focus - a focus somewhat foreign to this segment of the industry. Marriott was faced with higher break-even costs than its competitors and a requirement for much higher occupancy levels.

Marriott implemented this focus with the support of very selective hiring - an approach used by Southwest Airlines, and a new customer feedback mechanism for evaluating staff and unit performance. The guests would rate three aspects of service: cleanliness, friendliness, and efficiency. The three individual scores were aggregated to give an overall guest score, the scores were publicized across the firms to allow for easy comparison and monetary incentives were tied to the performance at individual lodging properties. Thus there was considerable motivation for all unit members to investigate opportunities and effect improvements.

Fairfield Inn won awards for the best hotel in segment only two years after opening. It has continued to win awards over the last decade. This has translated into more growth of Fairfield Inns' in secondary and tertiary market segments of the lodging industry.

References
Microeconomics by David C. Colander
The Competitive Market Structure of the U.S. Lodging Industry and its Impact on
the Financial Performance of Hotel Brands by Dragan Matovic
Strategic Human Resource Management, by Jeffrey A. Mello.

About the Author
Manmohan Shetty MBA, CHA
Director, Business Development
Days Inn Worldwide Inc.
(Division of Wyndham Hotel Group)

Experience of 15 years in the hotel business - Worked in the hotels in Dubai, Abu Dhabi, Switzerland & United States involved in operations.

Presently working for Wyndham Hotel Group based out of Overland Park, KS
email: mshetty1999@gmail.com
phone: (913) 702-4593

Logos, product and company names mentioned are the property of their respective owners.

# data[].attributes.attachment_link.title
The Lodging Industry Market Structure - by Manmohan Shetty

# data[].attributes.attachment_link.description
A monopolistically competitive firm acts like a monopolist which means that the firm is able to influence the market price of its product by altering the kind of the product being offered. Unlike in perfect competition, monopolistically competitive firms have products that are not perfect substitutes.

# data[].attributes.headline
                                                                                                                       STEP 2: MACROECONOMICS PRELIM ANALYSIS 

# data[].attributes.subject
                                                                                                                       STEP 2: MACROECONOMICS PRELIM ANALYSIS 

# data[].attributes.body
HOSPITALITY INDUSTRY IN SINGAPORE 🏨

# data[].attributes.body
Thank you for your analysis and findings. I found the articles to be interesting and informative for your microanalysis. The first article, however, is incomplete.
A good attempt has been made to analyze the hotel industry.
I appreciate your candid reflections.

Areas for Improvements:
1. More analysis could have been done in discussing about the determinants of demand and supply of hotel rooms, such as the type of customers (locals, tourists, business visitors, etc, the price elasticity of demand will vary according to the profile of the visitors)
2. Bigger hotels compete with factors like location, F & B, and convention & conferences, and suitable meeting facilities.
3. Although research material covered the impact of Covid-19, it was not covered in your analysis. More recent articles could have been added to this as part of your research.

Wishing you all the best for your next stage of analysis.

Cheers!

Josh Nathan

# data[].attributes.body
Thank you guys for being wonderful teammates and it is my pleasure to be in this team!!! We faced many challenges but we made it and that is what is most important!

One point of improvement is we should stop rushing and give ourselves more time to relax instead of finishing the project so fast.

# data[].attributes.body
The whole team contributed equally in this group project and I am thankful to have them as my teammates.

One improvement: We should have clarify with our lecturer on the industry we chose before jumping into our research.

In all, I have to say we managed to overcome our first obstacle professionally and hopefully we can score well for this module. <3 <3 <3

# data[].attributes.body
Having given the opportunity to be able to work with these amazing people,  it gave me a chance to learn a great deal about the topics being discussed and in addition,  helping to illuminate my weaknesses when working with new people. The process of our project had many uncertainty due to the nature of us being unfamiliar to this new environment. Nevertheless we were able to overcome  this obstacle as a team with everyone being so patient and understanding. I would definitely love to collaborate with you guys again!!

One suggestion for improvement would be that we should have seek for our lecturer advise first about the industry we chose before having done all the research.

I believe that with everyone hard work and dedications towards this project,  getting good grades will certainly not be a problem.

# data[].attributes.body
It was my pleasure to be a part of this team. I like how we equally contributed, how productive we were throughout the process and what I'm most impressed was how respectful we were towards each other as I believe respect is one of the key factors in group project. This is our first time working with each other but I was so proud of how we overcome the challenges together and I would love to work with you guys again for the upcoming projects :)

The one and only improvement I would suggest is we should take a break in between while doing the project so that we won't be overloaded or stressed out and thus give better quality work.

# data[].attributes.body
I cannot ask for a better group and I am thankful to be part of this team.
Although It took me more time to process and research, everyone was patience and kind towards me. Let's keep up the good work and continue to strive for even better.

One area our team could improve on would be to maintain this level of productivity and work ethic throughout this module.
I believe everyone is able to achieve good grades when we work put in the hard work.

# data[].attributes.headline
                                                                                                                                      TEAM MEMBERS REFLECTION 

# data[].attributes.subject
                                                                                                                                      TEAM MEMBERS REFLECTION 

# data[].attributes.body
STEP 1: MICROECONOMICS PRELIM ANALYSIS

# data[].attributes.attachment_link.readable_text
Today's era of infinite data empowers revenue managers with ever-deeper insights into market dynamics. Monitoring competition and adjusting rates in near real-time has become a bare-minimum activity. Dynamic pricing and data-based personalisation are now tools of the trade, leading to stronger performance for hotels that use data to track rates and react competitively.

Yet, within this stream of bits and bytes of supply and demand, we can forget that human psychology underpins each and every booking. And when it comes to pricing, not every consumer sees the lower price as the better deal.

Enter the concept of price elasticity.

Simple in theory but complex in practice, price elasticity is the notion that consumers react to price in an individualised manner. Rather than only external demand factors such as seasonality and event, price elasticity puts consumer behaviour at the centre of pricing decisions. In other words, consumer behaviour is not always rational; a lower room rate doesn't always increase bookings.

While we're not going to dive (too) deep into the economic theory, here's a primer on price elasticity and how it should influence your hotel's room rates and overall revenue management.

Individual versus market demand

The most relevant part of price elasticity for hotels is the difference between individual and market demand. In the broader sense, a hotel's market might see a correlation where lower prices increase demand.

Put differently, higher room rates reduce demand.

When hotels increase rates in anticipation of higher demand, some customers are priced out. The overall revenue of the hotel is improved by better matching rates to demand.

However, at the individual level, there can sometimes be an opposite effect, whereby a lower room rate actually results in less demand, or a higher rate creates greater demand. In these instances, the inverse correlation is because travellers react to price in different ways.

For example, travellers at the lower end are more price-sensitive than those at the higher end. Dropping the price of the low- to mid-market hotel will generally result in increased demand, while lowering the rate at an upscale hotel doesn't always have the same effect.

Since a lower price may signal lower quality, hotels must be especially careful to understand the correlation between price and demand at the property, market and category level.

Short- versus long-term

In an academic paper exploring the effects of elasticity on hotel demand curves, researchers found a difference in elasticity between a short booking window and one further out.
"In the short run, buyers have little time to find alternative accommodations or change their destination and therefore are not highly price-sensitive. Conversely in the long run, assuming a price change is permanent, buyers have time to react to new pricing."
In other words, changes to rates for close-in booking windows are more likely to impact demand. Therefore rate adjustments should be made further in advance if a revenue manager wants to lessen effect on demand.

Category versus property

Price elasticity matters most at the category level. That's because potential guests are usually comparing hotels within the same category. At the individual property level, revenue managers have more control, as price drops can attract demand from competing hotels in their market.

As the authors above explain (emphasis ours):
"At a property level, a hotel that significantly lowers its price could potentially take demand away from competing hotels and capture more demand than could be captured by lowering price at a city-wide or chain-scale level. Hence, [our analysis is] useful for interpreting differences in demand responsiveness to price changes among types of hotels. For example, we estimate the price elasticity of luxury hotels to be four times the price elasticity of economy hotels."
Revenue managers should also know that price elasticity at the national level is less accurate. That's because demand doesn't budge much if everyone in a domestic market raises their prices. As the group of hotels analysed becomes more narrowly defined - whether by category or market - there's more price elasticity.

How to calculate price elasticity

Price elasticity is the positive or negative correlation between how a change in price affects the demand. The higher the number, the more a price change reduces demand. The lower the number, the more a price change increases demand.

Generally, calculate price elasticity by dividing the change in demand over the change in price. This formula empowers revenue managers to understand how a particular change in price affects demand.

Whenever prices change in your revenue management software, the effect on demand can be calculated. The most active revenue managers will create experiments to gauge the correlation between price and demand at the property, market, and category level.

Such analysis is possible today thanks to the sheer amount of accessible demand data. As Rhett Hirko, at the time the Director of Revenue Analytics at Hyatt, presciently observed in 2012, "price elasticity is an important tool but should not be used in isolation; an understanding of a hotel's market is critical to understanding the total impact of price elasticity."

In other words, the most effective revenue strategy monitors not only how competitors react to pricing, but also how consumers react to that pricing.

Predictive demand intelligence tools are useful tools to see how pricing decisions will affect demand at the behavioural level. By offering a clear view into both historical and forecasted demand, revenue managers have a more granular understanding of how a property's demographics respond to variations in rates.

Once price elasticity is understood, the fundamental tenets of revenue management still apply:

But with consumer psychology, it's not always the low price that wins.

# data[].attributes.attachment_link.title
Price elasticity and how it can influence room rates

# data[].attributes.attachment_link.description
While dynamic pricing and data-based personalisation have become common tools for revenue managers, we can forget that human psychology underpins bookings, and not every consumer sees the lower price as the better deal. Enter the concept of price elasticity, the subject of this blog post.

# data[].attributes.attachment_link.title
Topic: Tourism and hotel industry in Singapore

# data[].attributes.attachment_link.description
To compete and distinguish itself from the internationally-popular beach holiday destinations right at its doorstep, such as Thailand and Bali, Singapore has invested heavily in marketing itself as a must-visit city destination offering a variety of unique experiences and tourist attractions.

# data[].attributes.headline
3. The likely price elasticity of demand/service of the produce and/or its determinant(s) based on your research. 

# data[].attributes.subject
3. The likely price elasticity of demand/service of the produce and/or its determinant(s) based on your research. 

# data[].attributes.body
Support from key sources:

The price elasticity of the hospitality industry is very elastic as hotels are a luxury and not a necessity.

The demand for necessities is price inelastic and the demand for luxury is price elastic.

Lower prices of room rates will increase the quantity demanded and higher prices will decrease the quantity demanded.

One of the main determinants affecting the price of elasticity of demand is the availability of substitutes. Many consumers will usually compare hotels of the same category to find the cheapest and best options of the same classification ratings.

This is shown in the article as they mentioned that "At the individual property level, revenue managers have more control, as price drops can attract demand from competing hotels in their market".

# data[].attributes.attachment_link.readable_text
Market Snapshot

Study Period:

2016 - 2026

Need a report that reflects how COVID-19 has impacted this market and its growth?

Download Free Sample

Market Overview

Singapore has been recording a rising number of travelers from the past decade. In 2009, the total number of international arrivals was around 9.6 million which almost doubled in 2019 to approximately 19.1 million. According to a report by DBS Bank, there has been a gap in the supply of hotels or different forms of accommodations to match the growing number of travelers to the country. The total number of visitors per country is growing at an average of 6% from the past 10 years whereas, the hotel room supply is growing at only 4.2% especially in the past four years which is challenging the tourism industry in the country. However, in order to reduce this gap, the country is making efforts to increase its hotel project construction pipeline which holds various projects which are at different stages of construction of which more than 90% of new hotel rooms are slated for opening in 2021-2023 are upper-midscale and luxury hotels. Also according to the latest rankings of ease of doing business, by World Bank in 2019, Singapore has been ranked second in it which further explains the opportunity for hotel industry expansion.

Scope of the Report

A complete background analysis of the Hospitality Industry in Singapore, which includes an assessment of the industry associations, overall economy, and emerging market trends by segments, significant changes in the market dynamics, and market overview is covered in the report.

Report scope can be customized per your requirements. Click here.

Key Market Trends

Rising Number of International Visitors are Driving the Market

The number of international tourist arrivals to Singapore has been increasing since 2000 with only 3 instances of contraction which were short-lived. Even with increasing competition from Indonesia, Vietnam and, Thailand, the number of visitor arrivals to the country is expected to be moderate and continue to grow at healthy rates in the forecast period owing to the Singapore Tourism Board's (STB) marketing campaigns to attract tourists from various locations across the world. For instance, STB has proved successful in attracting tourists from tier - II and tier - III cities of China.

To understand key trends, Download Sample Report

Key Players are Focusing on Innovative and Package Customisation to Attract More Customers

Singapore is greatly seen as a holiday destination and is been recording a high number of leisure travels. More than 55% of the travelers are visiting the country for leisure trips which are followed by business travel at 11%. Even with the fluctuating occupancy rates over the past 10 years the region has been recording rising revenue per room year on year which is making the region a better opportunity for investors. According to Wyndham Hotels & Resorts, the firm is going with the new strategy which focusses more on Singapore serving as a major business hub in mind. The firm is planning to host numerous group events throughout the year by fulfilling the fundamental demands of the corporate groups that are shifting drastically away from the traditional conference settings by being the one-stop- solution to provide work-related meeting space along with providing play and relaxation for visitors.

Competitive Landscape

The hotel and accommodation sector in Singapore is a combination of homegrown players and international players. Most of the hotels are strategically located in places that are highly preferred by tourists. The region holds good demand for hotels as the supply is little less than the demand. With the co-operating government policies, the region is an attractive one for the investors.

Table of Contents

1. 2. RESEARCH METHODOLOGY

2. 3. EXECUTIVE SUMMARY

3. 4. MARKET INSIGHTS AND DYNAMICS

1. 4.1 Market Overview

2. 4.3 Impact of COVID - 19 on the Hospitality Industry

3. 4.4 Insights on Revenue Flows from Accommodation and Food and Beverage Sectors

4. 4.5 Leading Cities in Singapore With Respect to Number of Visitors

5. 4.6 Investments (Real Estate, FDI and others) in the Hospitality Industry

6. 4.7 Technological Innovations in the Hospitality Industry

7. 4.8 Insights on Shared Living Spaces Impact on the Hospitality Industry

8. 4.9 Insights on Other Economic Contributors to the Hospitality Industry

9. 4.10 Value Chain Analysis

10. 4.11 Porter's Five Forces Analysis

4. 6. COMPETITVE INTELLIGENCE

1. 6.1 Market Concentration

2. 6.2 Company Profiles

1. 6.2.1 Accor S A

2. 6.2.2 Marriott international

3. 6.2.3 Far East Hospitality

4. 6.2.4 Forward Land

5. 6.2.5 InterContinental Hotels Group Plc

6. 6.2.6 Pan Pacific Hotels Group

7. 6.2.7 Millennium & Copthorne International Limited

8. 6.2.8 Hotel 81

9. 6.2.9 Shangri-La hotels & resorts

10. 6.2.10 Marina Bay Sands

3. 6.3 Loyalty Programs Offered by Major Hotel Brands

5. 7. INVESTMENT ANALYSIS

6. 8. FUTURE OUTLOOK OF THE SECTOR

**Subject to Availability

Frequently Asked Questions

80% of our clients seek made-to-order reports. How do you want us to tailor yours?

# data[].attributes.attachment_link.keywords[]
hospitality industry in singapore market size

# data[].attributes.attachment_link.keywords[]
hospitality industry in singapore market share

# data[].attributes.attachment_link.keywords[]
hospitality industry in singapore market analysis

# data[].attributes.attachment_link.keywords[]
hospitality industry in singapore market forecast

# data[].attributes.attachment_link.keywords[]
hospitality industry in singapore market overview

# data[].attributes.attachment_link.title
Hospitality Industry in Singapore - Growth, Trends and Forecast (2020-2025)

# data[].attributes.attachment_link.description
Study Period: 2016 - 2026 Download Free Sample Singapore has been recording a rising number of travelers from the past decade. In 2009, the total number of international arrivals was around 9.6 million which almost doubled in 2019 to approximately 19.1 million.

# data[].attributes.body
2.1 Changes in Consumer's income affects demand for hotels.
Support from key sources:

With rising wealth, consumers are changing their preferences from budget hotels to luxury hotels.

In 2019, 53 percent of tourists choose to stay in hotels. The tourism industry plays an important part in Singapore, accounting for roughly 4% of its gross domestic product in 2019.

In addition, Singapore recorded the highest number of international tourist arrivals with 19.1 million visitors in 2019.

To support local businesses affected by the impact of the covid19 pandemic,  the Singapore government invested 320 million Singapore dollars to promote domestic tourism through the initiative of the SingapoRediscovers campaign.

Every Singaporean citizen was given $100 worth of vouchers that can be used for hotel bookings,  activities, and tours

As a result, as consumer confidence increases, so will the demand for hotel rooms. Hotel demand will shift to the right.

2.2 Changes in the Number of Buyers affects the demand for hotels.

Support from key sources:

Singapore is seen as a holiday destination with a high number of leisure travels throughout the years.

In 2009, the number of international arrivals hit 9.6 million which doubled in 2019 to approximately 19.1 million.

The increasing number of international tourists' arrival in Singapore from 2012 to 2018, corresponds to the revenue generated by hotels in Singapore shown in the chart.

Singapore is anticipated to increase the number of hotel rooms. More than 90% of new hotel rooms, both upper-midscale and luxury, are expected to open by 2021-2023.

As a result, as the number of travelers grows, so will the demand for hotel rooms. Hotel demand will shift to the right.

# data[].attributes.headline
2. Demand and/or supply determinants that are applicable to the product/service/industry.  

# data[].attributes.subject
2. Demand and/or supply determinants that are applicable to the product/service/industry.  

# data[].attributes.body
Support from key sources:

The number of travelers to Singapore has been rising over the decades. This shows us the high demand for Singapore’s hospitality and visitor arrivals to Singapore has always been a market strength.

Visitor arriving to Singapore have grown significantly over the past 10 years, reaching an estimated 18.5 million visitor arrivals in 2018.

From 2004 to 2018, the demand changes have caused a structural shift in Singapore's market line-up. China officially make up 19 percent of the demand whilst Indonesia fell to 16 percent.

Due to newly introduced technologically-advanced aircrafts which shorten the flight duration from US to Singapore, US have raised 2 positions to get in the top ten source market in 2018.

Vietnam also ranked 9th position in the source market due to their economic development as well as expansion of its national career which allow them to travel abroad more frequent.

The top ten source market continue to contribute 74 percent of total demand. However, demand now relies more heavily on emerging economies, contributing to a new issue: lower per capita spending.

# data[].attributes.headline
                                                                                                                       STEP 1: MICROECONOMICS PRELIM ANALYSIS 

# data[].attributes.subject
                                                                                                                       STEP 1: MICROECONOMICS PRELIM ANALYSIS 

# data[].attributes.body
HOSPITALITY INDUSTRY IN SINGAPORE 🏨

# data[].attributes.headline
1. Market Structure of the Hospitality Industry: Monopolistic Competition  

# data[].attributes.subject
1. Market Structure of the Hospitality Industry: Monopolistic Competition  

# data[].attributes.body
Support from key resources:

Product Differentiation; Developing new products or services such as better accommodation facilities, bar, and restaurant facilities in terms of quality and branding in order to look different from other competitors. Due to brand loyalty, the hotel gains a certain level of market power and may raise prices without losing most of its customers.

Number of Buyers and Sellers; The Hospitality Industry market includes many different types of hotels like Days Inn, Hampton Inn, Holiday Inn Express, Baymont Inn and so on. When there are numerous hotels, it is impossible to persuade them to behave as one; hence, monopolistically competitive hotels are believed to behave separately.

Ease of Entry and Exit; long run barriers of entry must be relatively easy, there must be no significant entry barriers.

E.g. Marina Bay Sands differentiated its quality and branding through its ability to host large-scale Mice events and getting featured in movies like Crazy Rich Asians.