American Express Global Business Travel (GBT) recently released data under its Hotel Monitor 2020 report that hotel room rates in Singapore are likely to see a 2% increase by the next year.
This will mainly be due to investments that are being made in the travel industry.
According to the GBT report, Changi Airport is currently expanding under a multi-billion-dollar project while the Sentosa World Resorts are also expanding.
The Hotel Monitor 2020 report indicated that the tourism expansion projects are likely to improve tourism and MICE (meetings, incentives, conferences and exhibitions) business opportunities in Singapore.
Inflation is likely to affect room rates only marginally as they will see only a rise of about 2% said Sanghamitra Bose, the general manager of GBT Singapore and Thailand.
The report highlighted that in the Asia Pacific region hotel room rates are likely to become expensive.
Bangalore will see about 5% rise in rate – the highest, while Tokyo will see a 4% increase which will be closely followed by Hong Kong by a 3% rise.
Hotel Room rates are also likely to increase in commercial cities like Ho Chi Minh City, Bangkok, Melbourne, Kuala Lumpur and Shanghai – each by 2%.
The GBT is predicting that domestic travellers are likely to travel more which will compensate the fall in international travellers who will travel less due to the current global economic fragility and the uncertainty due to trade war.
Joakim Johansson, the global business consulting vice president of GBT added that though globally there are signs of challenges in economy, people who are travelling across the globe for leisure and business will continue to rise.
However, Johansson added that though huge development in the hotel business is in the pipeline in many cities, this will not mean that there will be big rise in room rates.
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