Singapore's average hotel room rates third-highest in Asia-Pacific: HRS survey
Source: The Straits Times / Ann Williams / 16 February 2015 / Photo by Lim Sim Thai
Increasing hotel room rates give clues about the good health of Asian-Pacific economy
It’s a trend that has been with us since the dawn of humans living in settled communities sometime around 14,000 years ago. As we began to trade with each other on an increasing scale, the market forces of supply and demand took over and set the value for the goods and services people sought. As demand for a product or service went up, so too did the price. This timeless trend may hurt the hip pocket of those doing the buying; however, it’s also a sign that more people are buying goods. A sign of a healthy economy that is for the good of all ultimately. That’s why Singapore’s hotel room rates going up, as well as those within other Asian-Pacific regions, is not all doom and gloom. In fact, it means that demand from travellers is increasing. Which is a good thing for the health of the tourism market in the long run.
Hotel room rates are a marker of the strength of the travel sector
According to global hotel solutions company HRS, Singapore ranks third in the Asia-Pacific region when it comes to the average cost of its hotel room rates. Jumping up by nearly 4% over the past 2 years, hotel room rates in the island city-state now average around $235 p/n. The only other two cities more expensive than Singapore were the Australian capitals of Melbourne at the top of the price list and Sydney in second. Melbourne has nearly 10Xed the price growth of Singapore in the last two years and its nightly room rates now sit at nearly $290.
This kind of growth has come off the back of the Victorian state government’s heavy investment in marketing Melbourne as the events capital of the Southern hemisphere. In a genius move, the state’s planners decided to drive tourism up by attracting major events and conventions to the city built on the banks of the Yarra River. And it looks to have worked, as official reports indicate more and more people are flocking to the southern Australian capital well-known for its love of coffee and sports.
What can Singapore learn?
It appears Singapore made it to the top of the hotel room rates price list without really trying. Tourists from around the globe are already well aware of what Singapore represents as a holiday destination - a chance to sample some of Singapore’s amazing local culture, including its fine food, and great shopping opportunities. However, if the Singaporean government decided to invest more into branding the city as a destination for world-class events and summits, we would see the number of tourists, as well as business travellers, rise significantly. And accordingly, hotel room rates respond in the positive. Which is ultimately a good thing for the local economy. And a good thing for the Asian-Pacific region overall as the other two major players in Melbourne and Sydney rush to respond.