Singapore's hotel room rates experienced a significant decline in
October, as revealed by the latest data released by the Singapore
Tourism Board (STB) on 4 December. This notable drop in rates was a
direct consequence of a decrease in tourist arrivals.
The average room rate (ARR) plummeted by 14.6% to S$278.08
(US$208.34) from September's S$325.46 (US$243.84). This decline,
compared to the same period last year, signified a 2.6% decrease,
marking the first downturn since March 2021.
The repercussions of this decline extended to the overall hotel room
revenue, which nosedived to S$413.1 million (US$309.5m) in October,
marking a significant 16.2% decrease from September's S$493 million
(US$369m). Despite this drop, there was a modest year-on-year increase
of 1.1%.
The impact on hotel occupancy rates was evident, with rates declining
to 78.1% in October, down significantly from September's 82.7%. In
comparison to the previous year, a notable 6.2% decline was observed,
following a marginal 0.1% drop in September.
The decline in hotel room rates affected all categories. Notably, the
luxury segment saw a substantial decrease to S$581.75 (US$435.86) from
September, indicating a drop of over S$100 (US$74.92). Similarly, the
upscale segment reached S$321.10 (US$240.58), the mid-tier was at
S$217.49 (US$162.95), and the economy segment stood at S$140.31
(US$105.12).