Anticipated 7.5% Increase in Singapore Hotel Average Rates for 2024

09 Oct, 2023

Anticipated 7.5% Increase in Singapore Hotel Average Rates for 2024

Despite an anticipated decrease in leisure travel demand, hotel rates are expected to rise globally in 2024, including in Singapore, a key regional hub for business and tourism. According to the Hotel Monitor 2024 report by American Express Global Business Travel (Amex GBT), Singapore's average hotel rates are projected to increase by 7.5% in the upcoming year.

While this rate hike in Singapore is slightly lower than in neighboring Asian cities like Shanghai, where hotel rates are predicted to rise by 8.4%, and Bengaluru, India, with an expected 11.1% uptick, it signifies a positive trend for the hospitality sector in the city-state.

Several factors contribute to this room rate increase, including local inflation and the sustained growth in business travel, meetings, and events. Singapore, renowned as a regional hub for both business and tourism, boasts a diverse demand mix, attracting leisure and corporate travelers alike.

The report highlights the robust recovery of Singapore's tourism sector in 2023, positioning it as the primary meeting destination in the Asia-Pacific (APAC) region. The return of meetings and exhibitions is expected to drive continued demand growth in 2024.

Additionally, the report notes that Singapore operates a Goods and Services Tax (GST) applicable to hotel bills, which will increase to 9% starting January 1, 2024, contributing to the upward trend in hotel rates.

Despite the evolving landscape of leisure travel, Singapore's resilience as a business and tourism hub is set to support its hospitality industry, making it an attractive destination for travelers and business events in the coming year.