Data released by the Singapore Tourism Board on Monday showed that the common hotel occupancy rate within the state was 93.8% in July, the best level on record since 2005, up from 92.5% a yr ago.
“Singapore stands to gain twice as much from Hong Kong as both destinations have similar characteristics,” says Derek Tan, an analyst at Singapore’s largest bank DBS, citing firms shifting conference venues from Hong Kong.
Marcus Hanna, general manager of Singapore hotels Fairmont Singapore and Swissotel The Stamford, said a 60-person business group moved from Hong Kong for five nights last month.
Hanna said its hotels that provide conference facilities had received many inquiries from firms trying to move events outside Hong Kong amid the unrest.
Jefferies analyst Krishna Guha said the developments in Hong Kong can be a consider revitalizing Singapore’s hospitality sector. Revenue per available room, a key performance indicator within the hotel industry, rose to S$203.70 ($146.50) in July, the best since October 2015, and from S$200.20 in July 2018.
He said the unrest would have an effect on tourists’ summer travel plans, although other aspects included tighter hotel supply in Singapore throughout the peak season for visitors from North Asia and a weaker Singapore dollar.
“The outlook for September and the rest of the year for Hong Kong remains bleak,” said Alicia Seah of travel agency Dynasty Travel, adding that inquiries and bookings have stopped because the airport closed last month.
“There are now spillover effects…both leisure and business travelers are choosing to travel to Singapore instead of Hong Kong.”
