Singapore’s hotel room rates are expected to rise by 2 per cent in 2020, following “significant” investments into the travel market, according to data from American Express Global Business Travel (GBT) on Friday.
Such investments, which includes the multibillion dollar expansions of Changi Airport and Resorts World Sentosa, are expected to increase tourism and the meetings, incentives, conferencing, exhibitions (MICE) business into Singapore, the travel management company said in its Hotel Monitor 2020 report.
Sanghamitra Bose, GBT Singapore and Thailand general manager, said room rates are expected to “remain stable”, with the predicted 2 per cent rise accounting for inflation.
In the Asia-Pacific, hotel room rates are expected to edge up, with Bangalore seeing the highest increase at 5 per cent, Tokyo rising at 4 per cent, followed by Hong Kong at 3 per cent.
Other markets forecasted to see a 2 per cent rise in room rates include Bangkok, Ho Chi Minh City, Kuala Lumpur, Melbourne and Shanghai.
GBT is observing a rise in domestic travellers, offsetting any falls in international visitors from a less optimistic global economic outlook.
Globally, Joakim Johansson, vice president of global business consulting at GBT, said that despite signs that the global economy is facing challenges, the number of people travelling for business and leisure continues to grow.
“But, in most cities, a full hotel development pipeline means this sustained level of demand will not feed into big rate rises,” he added.