While the Ministry of Trade and Industry (MTI) expects the Singapore economy to grow by 0.5 to 1.0% in 2019 and by 0.5 to 2.5% in 2020, the number of international visitor arrivals is expected to grow by about 3.1% to almost 19.1 million in 2019 and by 4.6% in 2020 to 19.9 million as illustrated in the graph below.
The number of international arrivals to Singapore has grown at a CAGR of 7% since 2009. With increased competition from Thailand, Vietnam and Indonesia, the number of visitor arrivals is expected to moderate but continue to growth at healthy rates in the foreseeable future
Historical & Forecast International Visitor Arrivals to Singapore 2010-2020
The number of gross lettings (room nights) is forecast to grow by 3.7% in 2019 to 19 million and 6.8% in 2020 to 20.2 million. Since 2009 room nights sold in Singapore’s hotels has grown at a CAGR of 8.2%.
Average room occupancy increased 1.2 percentage points from 86% in 2018 to 87.2% in 2019. We forecast room occupancy to grow to 89.1% in 2020 as illustrated in the following graph.
Historical & Forecast Growth of Room Occupancy in Singapore Hotels 2007-2020
Luxury hotels are expected to post an average occupancy of 87.3% in 2019, the same as 2018. We forecast an increase of 0.7 percentage points in average occupancy for luxury hotels in 2020 rising to 88.1%.
Historical & Forecast Room Occupancy for Luxury Hotels in Singapore 2008-2020
The average room rate is forecast to grow to $220.18 in 2019, an increase of 0.5% on the rate for 2018. The average room rate for 2020 is forecast to rise by 1.9% to 224.26.
Historical & Forecast Average Room Rate for Singapore Hotels 2007-2020
The average room rate for luxury hotels is forecast to grow to $454.64 in 2019, an increase of 1.3% on the rate for 2018. The average room rate for 2020 is forecast to rise by 2.4% to 465.55.