According to Timetric, Singapore’s hotel market value has expanded at a CAGR (Compound Annual Growth Rate) of 10.96% since 2008. This is due to a recovery in tourist inflows during 2010-2011. Timetric forecasts that revenue in the Singaporean hotel industry is expected to reach US$6.7 billion by 2017. This is due to an increase in tourism volumes, rising levels of disposable income and more competitive prices for accommodation. As a major business hub, Singapore is especially exposed to the global business cycle, experiencing surges in business travel during high growth periods and suffers declines during crisis periods. In the wake of the global financial crisis Singapore experienced a decline in the number of tourists. According to the World Travel and Tourism Council in 2012, it accounted for 11.3% of the country’s GDP and comprised 9.1% of its total employment. Key growth drivers for tourism to 2017 will be sound economic conditions, rising levels of consumer confidence and government initiatives to increase domestic tourism.
New innovative initiatives will drive tourism in the future
“We have to look beyond mere numbers and make a strategic shift towards quality tourism,” says Chew Choon Seng, chairman of the Singapore Tourism Board in its 2012 annual report. “This will emphasize hospitality, service standards, innovative developments and rejuvenation of older attractions, with the aim of offering visitors and experience that will commensurate with higher expectations.”
