Top 3 Hospitality Industries in Singapore

Singapore’s hospitality industry is a multi-million-dollar sector that comprises a broad group of business entities that offer their services to customers and business clients. The industry is focused on the satisfaction of customers by providing specific experiences for them. It is set to grow steadily, with the global economic outlook favorable and Asia-Pacific tourism poised to expand, the hospitality industry is generally optimistic about the year ahead.

Primary Areas of Operations in Singapore Hospitality Industry

1. Accommodation services

The accommodation sector encompasses hotels, resorts, motels, and other lodging services primarily offering bed & breakfast services with different levels of comfort, quality and experience.

2. Food & Beverage

The food & beverage sector comprises restaurants, fast food chains, cafés, bars and other establishments that offer food and beverages. These facilities may be located in hotels or can be standalone establishments that offer wide-range of food options such as breakfast, dinner etc. at various price ranges, quality, and with the opportunity to try diverse of cuisines.

3. Travel and Tourism

Travel & tourism is the final area of operations in hospitality industry, these include offering airline services, trains connecting popular locations, sightseeing packages to tourist hotspots, adventure sports, boating services, and cruise ships.

Singapore’s Booming Travel & Tourism Industry creates Opportunity for Hotel Development

The Singapore Tourism Board predicts that the number of international visitors to the country will rise up to 4% to 18.1 million by the end of 2018, beating the last year’s record of 17.4 million visitors. This scenario is expected to strongly continue well into 2019 as the situation is favorable for global tourism and travel. Singapore’s hospitality sector outlook is decisively looking brighter the upcoming year as the market sentiment turns up with forecasted rise in the arrival of visitors from India and China.

Singapore still requires a significant amount of hotel rooms to accommodate the huge influx of visitors, although the Singapore market saw substantial rise in the hotel room supply the hotels are tempered by low level of rooms available for tourists especially at the mid-market & lower end. Considering the current situation, the hotel room occupancy in Singapore is expected to stick around at 84%, with guestrooms in the country remaining full at almost all the time during peak periods, especially from Monday to Thursday and Saturday nights.

We can say that this is the opportune time for further development and investment in the hotels due to the favorable market with growth potential. In fact, a slight increase in the room supply in Singapore is not expected to diminish the room occupancy due to the ever increase number of visitors requiring lodging services.

While the affluence of the Chinese middle-class continues to rise, along with the increase in foreign tourism from India the Singapore will continue to be a key destination for the growing out-bound tourism in China and India. The Singapore’s hoteliers and travel operators are aligning themselves for the on-coming tourist seasons and plan to attract approximately 70 million overnight visitors by 2020. However, the intra-Asia travel that has expanded in the recent years underpins the demand as the number of domestic tourist destinations have received a considerable number of tourists combined with the rise of larger tourist destinations across the Asia-Pacific region.

Tables Are Turning for Singapore’s Hospitality Sector

As the hotel players are seeing a high number of requests for proposals while the rates are getting firmer. The Singapore’s hospitality sector is in the spotlight as the sector foresees a steady & solid growth rate in the upcoming year 2019, this boom is driven by the increasing demand for rooms and hotel services for tourists as well as businesses. The ever-rising occupancy and Average Daily Rates (ADR) are expected to go up consequently due to big business events, corporate bookings of banquet halls, and growing number of Chinese & Indian tourist arrivals.

Similarly, the second crucial factor behind the rapid growth in the Singapore’s hotel sector is the operations of certain sectors like pharmaceuticals, information technology, aviation, precision manufacturing and government. These sectors procure huge corporate services from the hotel industry such as serviced apartments for employees, banquet halls for events, catering services, business and leisure.

Developments from the Singapore Tourism Board

As part of its efforts in building an innovative and competitive tourism sector, the Singapore Tourism Board (STB) worked with the Singapore Hotel Association (SHA) and the National Association of Travel Agents Singapore (NATAS) to inaugurate a Hotel Innovation Challenge and a Travel Agents Innovation Challenge respectively. Aimed at encouraging technology adoption amongst the industry stakeholders, there was good participation by both industry and solutions providers for the two challenges.

The STB has also been collaborating with hotel stakeholders to launch a three-year Hotel Careers Campaign to attract young Singaporeans to join the hospitality industry. In addition, STB continued to support the Earn and Learn Programme under the Skills Future initiative allowing polytechnic students to engage in the programme, which aims to induct Singaporean talents into the tourism sector.

To facilitate a pro-business environment and encourage more innovative offerings from the Travel Agents industry, and to strengthen the regulatory framework for industry sustainability and better consumer protection, the Ministry of Trade and Industry (MTI) and STB introduced amendments to the Travel Agents Act and Travel Agents Regulations. Reception towards the amended Act and Regulations has been positive. On the same track of innovation, STB launched a Marketing Innovation Programme (MIP) in April last year to inspire innovative ways of marketing Singapore.

Business Setup Worldwide is a global business consulting firm that can assist you in your company formation process in Singapore. We specialize in business registration, accounting, bookkeeping, tax advisory, intellectual property protection and corporate secretarial services. To know more about the hospitality industry in Singapore, contact us – we’d be happy to help you with any information.

Get your company incorporated in popular business locations @ best prices*

Seychelles Price BVI Price IFZA Price SRTIP Price

*Prices valid till