In spite of the economic downturn in Singapore’s hotel industry, about ten hotels plans to offer some 5,100 rooms, which are expected to launch next year.
The hotels, which are conceived in the midst of the prosperous period, are facing difficulties in filling up their rooms. But, owners say business should be done in spite of gloom.
“Ideally, we want to open in more favourable times,” Ibis general manager Puneet Dhawan said. “But we are still optimistic because people are coming to Singapore [and] we just have to open them more bang for their buck.”
The optimism of hotel owners is put to the test as arrivals in the country have continued to decline since June due to the global recession. Furthermore, October had 8 percent fewer visitors compared last year.
Hotel industry analysts predict that the year will be a difficult year for the hotel industry. Executive vice-president and head of corporate advisory for Jones Lang LaSalle Hotels, Chee Hok Yean predicts that occupancy rates will drop to 70 to 75 percent.
Ms. Yean said, “Competition will be tough next year and hotels have to be constantly aware of the market condition and their competitors.”
The three-star hotel, Ibis, which is scheduled to open in February, offers S$148++ per night – almost 25 percent lower than the average price for mid-range hotels.
Mr. Dhawan said all efforts and promotions are designed to entice budget-conscious travellers.
However, Mr. Klaus Kohlmayr of Integrated Decisions and Systems International said that discounts would not guarantee hotel owners to get better occupancy. Instead, they should form connections with the local community.