TB05 economics project (Hotel Industry) Group 1 by You Le Skylar Choo https://padlet.com/s10222161/251mls775pw68tzn Skylar Choo You Le S10222161D Constance Sim S10227777B Shafinaz sharifuddin S10228055k Tee yi fong, Kingston S10227746D en-us 2021-11-11 05:38:58 UTC 2022-06-20 13:48:21 UTC hello@padlet.com STAGE 1 s10227746 https://padlet.com/s10222161/251mls775pw68tzn/wish/1884182292                                                                                                                                      MICROECONOMIC PRELIMINARY ANALYSIS ]]> 2021-11-11 13:41:01 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1884182292 Microeconomics Prelim Analysis [Based on 4 key sources of information] https://padlet.com/s10222161/251mls775pw68tzn/wish/1888410063 1. Market structure of the hotel industry. Monopolistic competition is visible. [Skylar]
Support from key sources:
There is a difference in marketing. In Singapore, it is clear that Marina Bay Sands and Resort World Singapore has better marketing strategies than the other hotels in Singapore. Advertisements for staycation with bundles are often spotted on social media.

Product differenciation is highly visible. location wise, and structure of hotel buildings and interior. For e.g.
- MBS (known for the ship on top)
- RWS equarius hotel with themed rooms for halloween this year and is at harbourfront 
- Four seasons hotel has elegant furnishing and the hotel rooms are surrounded by Asian antiques

2. Availability of Substitutes: High price elasticity of demand [Shafinaz]
- There are plenty of substitutes for hotels in Singapore. When the price of their desired hotel increases, consumers can simply look for a cheaper alternative using hotel booking platforms.

- “A lot of those travellers are looking for a mid-scale to budget type property more so than a luxury one."

- This suggests that consumers are price sensitive

- Example: A luxury hotel such as Marina Bay Sands hotel can be substituted with a mid-ranged hotel such as Fragrance Hotel. Hence, high price elasticity of demand.

3. Price Determinant: Demands of staycation will increase within the years due to the distribution of Singapore Rediscover Voucher [Kingston + Constance]
- STB announced on Sep 26 2020, all Singaporeans above 18 will receive RDV which will boost hotel stays during covid period.

- With the vouchers, the price of the hotel room per night will be reduced. Hence there would be an increase in demand.

- It is estimated that 50% or more of young adults will spend their SRV on staycation to replicate overseas travelling amidst the covid-19 period.

4. Demand of hotels increase as more people are receiving SHN for contracting covid-19 [Skylar]
- Due to the increase in number of cases, the government has worked with hotels for people with SHN to stay

- Hence, there was an increase in the demand of hotels as rooms are needed to be allocated to the increasing number of covid patients

- It was seen that in 2020, 67,000 hotel rooms (more than half of the number of hotel rooms in Singapore) were allocated for people to stay after they had contracted covid.

5. Number of Buyers: The demand for hotel rooms dropped as Singapore sees less travellers [Shafinaz]

  • Due to the pandemic, Singapore has imposed a travel ban. Hence, the decrease in the number of travellers. 
  • This affected the demand of the hotel rooms heavily


]]> 2021-11-13 17:18:02 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1888410063 Additional references for presentation s10222161 https://padlet.com/s10222161/251mls775pw68tzn/wish/1891586806 https://www.straitstimes.com/singapore/consumer/hotels-stay-resilient-amid-covid-19-pandemic-hospitality-staff-honoured-for


]]> 2021-11-15 15:25:58 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1891586806 Key Info. Source [1] s10222161 https://padlet.com/s10222161/251mls775pw68tzn/wish/1891612144 https://www.timeout.com/singapore/hotels/best-luxury-hotels-singapore]]> 2021-11-15 15:34:34 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1891612144 Introduction of the hotel industry s10222161 https://padlet.com/s10222161/251mls775pw68tzn/wish/1891782663 With over 400 hotels and 64,00 rooms available in Singapore, the hotel industry is expected to grow with newer hotels despite the covid-19 pandemic as they expect an increase in demand for hotels soon. Big competitors such as JW Marriott Singapore South Beach and The Fullerton Hotel are affordable and luxurious, which keeps the industry rolling. As of 2016, the hotel industry was $3.5b value-added.


 https://www.myskillsfuture.gov.sg/content/portal/en/industry-insights/industry-detail.Hotel-and-Accommodation-Services-15631.html
https://mothership.sg/2021/04/new-hotels-singapore-pandemic/

]]> 2021-11-15 16:37:42 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1891782663 Key Info Source [2] https://padlet.com/s10222161/251mls775pw68tzn/wish/1891799078 2021-11-15 16:43:40 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1891799078 Key Info Source [3] https://padlet.com/s10222161/251mls775pw68tzn/wish/1892623710 https://www.channelnewsasia.com/singapore/singaporediscovers-vouchers-local-tours-hotels-offers-595646]]> 2021-11-16 00:30:51 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1892623710 Reflection [Shafinaz] https://padlet.com/s10222161/251mls775pw68tzn/wish/1892870912 I like how our discussions are kept short but at the same time. This gives us more time to do our individual researches. 

The areas that can be improved on would be by being more responsive in both our group chat and during our group calls. Also, last minute work should be avoided. 

One interesting fact of the industry discovered is the way hotels are adapting and innovating during this covid-19 period. For example, they have been marketing their rooms differently such as encouraging 'Workcation'. Workcation allows one to take a break from their usual place of work. ]]> 2021-11-16 02:19:22 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1892870912 Reflection (Skylar) s10222161 https://padlet.com/s10222161/251mls775pw68tzn/wish/1892970341 What i like about our team is that we were able to decide on which member does what quickly and the call we had was quite straight forward.

I think we can improve more on showcasing our points i felt that it was hard to understand some ideas during the call, and likewise i think you all felt it was hard to understand mine too.

One thing i have learnt and felt was interesting during this research is that there are still hotels opening even despite the current covid situation. And there are many more hotels that are still planning to open.]]> 2021-11-16 03:01:25 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1892970341 Reflection[King] https://padlet.com/s10222161/251mls775pw68tzn/wish/1893080052 I like how although we don't discuss much but we are able to build on each other points and give constructive feedback to help each other

the areas that I feel needs to be improved is that we can arrange a time for meeting in advance

One thing i actually found interesting is the challenges faced and how they overcome their difficulties that i wasnt aware up until today]]> 2021-11-16 03:53:33 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1893080052 Reflection [Constance] https://padlet.com/s10222161/251mls775pw68tzn/wish/1893871610 I like how all our meetings were kept short; discuss on how to delegate the work and only had meetings when necessary. 

I think we improve more on our communication with each other.

One interesting fact that I have discovered about the hotel industry is that most of the hotels have a rich history and their revenue has been steadily increasing over the years. ]]> 2021-11-16 11:34:31 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1893871610 Key Info Source [4] s10222161 https://padlet.com/s10222161/251mls775pw68tzn/wish/1894375786 https://www.businesstimes.com.sg/government-economy/hotels-roll-with-the-punches-to-keep-rooms-occupied]]> 2021-11-16 15:01:20 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1894375786 Key source info [5] https://padlet.com/s10222161/251mls775pw68tzn/wish/1894394862 2021-11-16 15:07:39 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1894394862 Tutor's Comments: NAJ1 https://padlet.com/s10222161/251mls775pw68tzn/wish/1912019396 Glow Points:

1. A good choice of the industry chosen on the back of the lingering Covid-19 Pandemic Outbreak.
2. A good attempt has been made to analyze the industry, especially highlighting the impact of Covid-19 on the occupancy rates.

Areas for Improvements:
1. You will have to be more careful when choosing articles for analysis. Articles that have an advertising/publicity stance/focus may not be suitable to analyze the industry objectively.
2. Overall, the analysis lacks depth. One way to analyze the industry is to have a clear structure based on the requirements for the project. With the structure in mind, you will become more focused on getting relevant information. A suggested structure may include:
a. Introduction - here, after stating the market structure, you can describe the type of hotels we have in Singapore, mention some of the names, the star-category, the designer hotels, the thematic hotels, the heritage hotels, and boutique hotels. Describe their characteristics, i.e the type of guests, how do differentiate their services, besides accommodation, what other services they provide, etc
b. What are the determinants of demand for hotels in Singapore?
c. What are the determinants of the supply of hotels?
d. What factors influence the elasticity of demand for hotels.
3. Someone in the group has to facilitate the discussions and consolidate to ensure that there is a clear focus throughout. It would mean you spend more quality time getting the job done.

What is next?
There is no need to edit the Stage 1 Padlet with my comments. However, you should incorporate them when you consolidate major points for your final stage of the Powerpoint presentation.  

Next week, I will go through your project brief and share with you our expectations for the next stage of macroanalysis.





]]> 2021-11-25 07:01:29 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1912019396 STAGE 2 https://padlet.com/s10222161/251mls775pw68tzn/wish/1967964705     MACROECONOMICS PRELIMINARY ANALYSIS

]]> 2021-12-29 17:53:34 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1967964705 Key Info. Source [1] (refer to visualising data) https://padlet.com/s10222161/251mls775pw68tzn/wish/1967968797 Economy - National Accounts, Employment & Wages and Prices (eBook of Statistics)]]> 2021-12-29 17:59:22 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1967968797 Macroeconomics Prelim Analysis [Based on 4 key sources of information] https://padlet.com/s10222161/251mls775pw68tzn/wish/1967970698 1. Economic Situation from 2018 to 2020/2021 [Constance]
- Real GDP in the hotel industry has fallen quite drastically, from 7.1% in 2018 to 0.1% in 2019 and -28.7% in 2020.  This shows that the peak of real GDP is 2018. The GDP undergoes a considerable drop from 2018 to 2020, causing a recession. Hence, the GDP is negative.

- Caused by the Covid-19 pandemic which started in late January, 2020, in Singapore. Borders were shut and international tourists were not able to frequently travel to Singapore for holidays and work. As the Hotel Industry heavily relied on foreigners to earn revenue by filling up rooms for an extended period of time, the industry has been severely impacted, causing them to have little revenue as they turn to locals.

2. General price level situation in Singapore [Shafinaz]
-Overall inflation jumped to 3.2 per cent on a year-on-year basis, up from 2.5 per cent in September.

-Tuition and other fees, as well as prices of recreational and cultural services, also saw larger increases.

Singapore's electricity and gas tariffs are set to increase in the first quarter of 2022

- The electricity tariff will grow by an average of 5.6 per cent or S$0.0133 per kilowatt-hour (kWh) from Q4 2021 levels. This is due to the price increase of oil. Hence, there is a cost-push inflation

- Hotels heavily depends on electricity. Therefore, the rise in the price of electricity will affect the hotel industry negatively.

-"SP Group attributed the rise to higher fuel costs, as around 95 per cent of Singapore's electricity is generated using imported natural gas at prices indexed to oil prices."

3. Labor market in hotel industry in Singapore [Kingston]
- Due to the ongoing pandemic, Singapore experienced the worst recession in 2020. Due to Covid-19, Singapore went into lockdown which resulted in a major drop in the visitor's arrival of 85.7% and tourism receipt by 78.4% to a total of 4.4billion in the first three quarters of 2020. Which leads to the next point on cyclical unemployment.

- Cyclical unemployment: Due to the recession, there was a total of 2,340 layoffs in the second quarter and 2,270 in the third quarter according to MOM as of 15 sept.

- Hotels now provide spaces for different purposes such as Quick Test Centres, Swab isolation facilities and even SHN. Hence, they did not have enough manpower as there was more workload.

- This led to a rise in underemployment. Due to the overwhelming number of SHN individuals, people from other industries were tasked to assist the SHN crowd.

4. Government Measures: Covid-19 impact on the hotel industry [Skylar]
- Despite the declining rate of employment, more job opportunities were created. For example, Marina Bay Sands implemented the Vaccinated-differentiated safe management measures (VDS) for stricter measures. At each hotel lobby, staffs will sit outside to count the number of people entering each hotel room. This resulted in more manpower needed to control the flow of people.

- The government gave out $320 million worth of SingapoRediscover Vouchers(SRV) to Singaporeans, which helped to boost hotel sales as hotels were eligible for the voucher use. Since there was a huge drop of people booking hotels due to the pandemic as people were afraid of the virus, the vouchers gave a boost to the hotel industry.

- The staffs were able to increase their employability. In 2020, the STB and Singapore Hotel Association funded two times more students as compared to 2019 for the Training Industry Professionals in Tourism (TIP-iT) to train the employees and prepare them for future changes. Grand Hyatt Singapore, Raffles Hotel and other hotels redesigned job initiatives to teach their existing staff and let them experience things that are outside of their specialization to have more job opportunities and flexibility as well.]]> 2021-12-29 18:02:15 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1967970698 Key Info. Source [4] s10222161 https://padlet.com/s10222161/251mls775pw68tzn/wish/1969676945 2021-12-31 13:50:16 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1969676945 key info source [2] https://padlet.com/s10222161/251mls775pw68tzn/wish/1970140101 2022-01-01 16:08:28 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1970140101 Key Info source [3] s10227746 https://padlet.com/s10222161/251mls775pw68tzn/wish/1970930114 https://www.stb.gov.sg/content/stb/en/media-centre/media-releases/Singapore-Tourism-Sector-Emerges-From-2020-With-Greater-Resilience-and-Reinvention.html]]> 2022-01-02 16:41:44 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1970930114 Reflection [Constance] https://padlet.com/s10222161/251mls775pw68tzn/wish/1971998625 I like how we can easily distribute the work and get things done.

I think we can improve on the elaboration part to deepen the analysis of the hotel industry.

One interesting fact that I have discovered was the inflation rate over the years has been steadily increasing but dropped slightly in 2020. ]]> 2022-01-03 12:05:15 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1971998625 Reflection [Skylar] s10222161 https://padlet.com/s10222161/251mls775pw68tzn/wish/1972359410 I like how we were able to connect our points this time round for a smoother flow of content.

I think that there is still room for improvement on the responsiveness when we review each other's work

One interesting fact that i learnt was that it is possible to learn things outside of your job scope even with a stable job, as i always thought it would just be an enhancement of what you already know.]]> 2022-01-03 15:20:41 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1972359410 Additional references for presentation https://padlet.com/s10222161/251mls775pw68tzn/wish/1972505934 -  Affected local and international hotels; especially SMEs, going out of business, therefore affecting the livelihood of Singaporeans as they are left without a job while some choose to retrench workers to save cost while the business operations still continue. Leading to the next point. 

- The unemployment rate for Singaporeans and permanent residents (PR) in 2019 are 3.1% and in 2020, 3.9% and in 2021, 3.5%. On the other hand, the unemployment rate for non-Singaporeans are 0.9 in 2019, 1.1 in 2020 and 0.8 in 2021. 

- This indicates that the pandemic has caused by hotels to retrench locals as they cost more to hire, showing an increase in unemployment rate of locals and PR at 0.8% from 2019 to 2020 and a considerable drop of 0.4% from 2020 to 2021. While for foreigners, the unemployment rate increased slightly from 2019 to 2020 is 0.2% and from 2020 to 2021, a slight drop of 0.3%. 

- As seen from above, even though both unemployment rate dropped from 2020 to 2021, more locals and PR are still out of job than foreigners. Showing that employers prefer foreigners to Singaporeans or PR, might be due to cost cuttings and current employees taking on more tasks to replace the retrenched workers. 

- Hotels choose to focus more on sanitizing rooms and the laundry after each use which adds a burden to their expenditure, therefore, retrenching workers, to save cost. Coupled with the government measures to abide by the social distancing rules, this means lesser workers are required to be on-site. Leading to the next point of workers wages. 

- Based on the monthly income earned for those employed before deduction of CPF, their salary decreased from $2,457 in 2019 to $2,340 in 2020. 

- The Covid-19 pandemic may have contributed to this hotels cut costs by lowering workers' salary or retrenching. With this, it leads to the next point. 

- Inflation in Singapore has been generally increasing over the years with only a small dip in 2020. In 2018, it was 99.438%, increased to 100% in 2019 and a small drop to 99.818% in 2020. 

- Singaporeans reaction to the Inflation was that they spent lesser on the different categories, in 2018, it was 0.4%, in 2019, it increased to 0.6% and dropped significantly to -0.2% in 2020.

- Linking back to the income earned, Singaporeans earned lesser in 2020 than 2019, therefore, they would want to save more and avoid spending; spending on staycations and recreational activities. Also, given that inflation is bound to increase yearly, the goods and services would get more expensive each year. Singaporeans would want to switch to cheaper alternatives or consume lesser of the same goods and services; instead of a 3 days staycation in a hotel, they would cut it down to a day or two. ]]> 2022-01-03 16:29:53 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1972505934 Reflection [Shafinaz] https://padlet.com/s10222161/251mls775pw68tzn/wish/1972544540 Everyone managed to complete their allocated parts before the deadline which I really appreciate. Also,  everyone  was receptive to feedbacks. 

I think it would be good if all of us try to be more participative and involved during our meetings. We can do so by unmuting our mics.

One interesting fact that i have discovered is Singapore's quick response in providing help to individuals who are/were affected by the pandemic. For example, coming up with SkillsFuture for retrenched individuals to allow them to upskill.]]> 2022-01-03 16:49:18 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1972544540 Reflection [Kingston] s10227746 https://padlet.com/s10222161/251mls775pw68tzn/wish/1973607988 Everyone was able to work better and more smoother with better communication and get the work done.

i think that we can still improve on is to take initiative or be more responsive.

One interesting fact that i have learnt is that despite the ongoing pandemic, singapore is still able to keep afloat despite the small country]]> 2022-01-04 06:29:40 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1973607988 Tutor's Comments NAJ1 https://padlet.com/s10222161/251mls775pw68tzn/wish/1994811185 Glow points:
Thank you for giving me the editing right.
A good attempt has been made to analyze the industry which was badly hit during the pandemic outbreak.

Areas for Improvements:
The description of economic indicators must be based at least two years so that you are able to understand analyze the trends and the underlying reasons.

The government support in terms of monetary incentives and handouts need to be stated too.

What is the significance of the hotel industry to Singapore's economy? This requires further discussion.

What is Next? 
Work on the points mentioned and reflect them in your PowerPoint Slides.

Collate the key points from both analyses and prepare your PowerPoint Slides. 

Cheers!
Josh Nathan ]]> 2022-01-17 00:11:59 UTC https://padlet.com/s10222161/251mls775pw68tzn/wish/1994811185