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Continued growth is
expected in Singapore’s
hotel industry after a slump in the wake of the global financial crisis.
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According
to Timetric, Singapore’s hotel market
value has expanded at a CAGR (Compound Annual Growth Rate) of 10.96% since
2008. This is due to a recovery in tourist inflows during 2010-2011. Timetric
forecasts that revenue in the Singaporean hotel industry is expected to reach
US$6.7 billion by 2017. This is due to an increase in tourism volumes, rising
levels of disposable income and more competitive prices for accommodation.
As
a major business hub, Singapore
is especially exposed to the global business cycle, experiencing surges in
business travel during high growth periods and suffers declines during crisis
periods. In the wake of the global financial crisis Singapore
experienced a decline in the number of tourists. According to the World
Travel and Tourism Council in 2012, it accounted for 11.3% of the
country’s GDP and comprised 9.1% of its total employment. Key growth drivers
for tourism to 2017 will be sound economic conditions, rising levels of
consumer confidence and government initiatives to increase domestic tourism.
New innovative initiatives will drive
tourism in the future
“We
have to look beyond mere numbers and make a strategic shift towards quality
tourism,” says Chew Choon Seng, chairman of the Singapore Tourism Board
in its 2012 annual report. “This will emphasize hospitality, service
standards, innovative developments and rejuvenation of older attractions,
with the aim of offering visitors and experience that will commensurate with
higher expectations.”
