The growth of hotels and restaurants in Singapore is slowing as room lettings fall, but hotels are still enjoying double-digit growth in room rates, according to the Ministry of Trade and Industry (MTI).
The hotels and restaurants sector grew 2.1% year-on-year in the second quarter, compared to 2.9% the previous quarter, according to a report in the Straits Times.
“The slower Q2 growth was largely due to the hotels segment of the sector,” MTI was quoted saying in its quarterly economic survey review.
Room lettings by gazetted hotels – a proxy for the real growth of the hotels segment – have been in decline since Q4 2007, the report said.
Still, hotels are seeing double-digit growth in revenue per available room (revPAR) across all segments.
In the first half of this year, the average room rate (ARR) rose 30%, which led to revPAR growing 25%. All types of hotels – luxury, upscale, mid-tier and economy – saw strong revPAR growth.
Looking ahead, the outlook for the hotel industry remains positive, according to MTI. It said expectations remained high among hoteliers.
The hotel industry will also benefit from major events such as the Formula One Grand Prix, the opening of the two integrated resorts and the Youth Olympic Games, MTI was quoted saying.
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