SINGAPORE Official figures indicate that the average occupancy rate of Singapore hotels was 84% last year, when there were 7.6 million arrivals. The tourism board is estimating that there will be a 6%-8% increase in the number of arrivals this year, with room supply growth slated to be much slower than that.
“The crunch will begin in 2002 and beyond, when hotels start to operate above 90% occupancy levels,” said Christopher Khoo, Asia-Pacific research director at PricewaterhouseCoopers hospitality and leisure practice. “There will be some days when we will be turning away visitors, despite room rates rising to acceptable levels,” he said.
The government is to sell two sites for hotel development this year, ending a three-year hiatus. Those sites are expected to add 470 rooms to the market. (1/29/01)
SOURCE:International Herald Tribune