Hotel room prices have gone down slightly in Singapore as of January 2024. According to the Singapore Tourism Board, the Average Room Rate (also known as ARR) dropped 1.4% compared to the previous month (December 2023).
At the same time, Singapore is also experiencing an increase in tourism, especially from China, gaining of hotel room revenue by 4.6%. Which in total sums up to SG$423.2 million (USD$314.6) in tourism revenue. During the previous month, December 2023, the revenue was around SG$S$404.4 million (USD$300,7).
| Feature | January 2024 | December 2023 | Change (%) |
|---|---|---|---|
| Average Room Rate (ARR) | SG $278.75 | SG $282.60 | -1.4 |
| Total Revenue (Room) | SG $423.2 million | SG $404.4 million | +4.6 |
| Revenue per Available Room (RevPAR) | SG $217.76 | SG $209.53 | +3.9 |
| Occupancy Rate | 78.1% | 74.1% | +4.0 |
Table: Statistics of ARR, TR, RevPAR and Occupancy rate of Singapore Hotels.
Source: Business Times
This is by far the largest number of tourists visiting the country, occupying rooms by 78.1% on average. In December last year, the number was 73.1%.
Still, it remains lower than the after-pandemic rate of 83%, but Singapore is slowly gaining back its former tourism glory.
While the ARR of luxury, upscale, and mid-range hotel rooms decreased, a significant increase has been noticed in the budget-friendly ones.
The luxury rooms were down by SG$631.75, the upscale rooms by SG$321.27, and the mid-range ones by SG$206.15.
Surprisingly, the budget-friendly or economy rooms saw an increase in revenue by SG$141.78.
The reason behind it could be the events that were taking place during this period. Singapore Art Week, Thaipusam Festival, Pongal Festival, Light to Night Singapore, Artbox, and Singapore International Festival of Arts were among them.
Most notably, the Chinese New Year celebration was on 24th January 2024. It is the time when Singapore gets a large number of tourists from China along with all over the world.
While luxurious and expensive hotels are in demand for upscale visitors, regular tourists prefer to stay in budget hotels. This, in return, brought in a larger revenue, even though the hotel room rates went down slightly.
So, if you are planning a budget-friendly trip to Singapore, now would be a perfect time.
