The hospitality sector in Singapore will attain the market valuation of USD 21.18 billion by 2025. This growth is largely driven by the rise of the international hotel chains, major business events, and the expansion of the airport capacity. Entrepreneurs and investors seeking viable business opportunities in Singapore can tap into this sector and enjoy consistent income and growth. This article takes a closer look at how this sector is performing, so that you can make informed decisions when setting up a business in Singapore.
How is the Hospitality Sector in Singapore Performing?
In 2024, the hospitality sector in Singapore witnessed significant growth, and it is evident from the data below:
- International arrivals rose by 21.5% compared to 2023.
- Passenger footfall increased by nearly 15%.
- Revenue per available room (RevPAR) increased by 3%.
- Overall hotel transactions reached SGD 1.75 billion.
These numbers reflect that Singapore’s hospitality sector is on a remarkable growth trajectory, creating viable opportunities for investors.
Government Efforts to Support the Hospitality Sector in Singapore
The hospitality sector in Singapore is expected to grow further, backed by the following government initiatives:
Launch of Jurong Lake District (JLD)
The Singapore Tourism Board (STB) is all set to fuel the tourism sector with its ambitious project - the Jurong Lake District. This is a mixed-use business project with state-of-the-art architecture, sprawling, verdant landscape, and modern residences. The project aims to redefine how people live, work, and play.
Business Improvement Fund (BIF)
The BIF is a government-backed initiative designed to incentivize companies in the hospitality sector in Singapore. BIF aims to provide fiscal support to struggling businesses. Companies with sustainability certifications can use BIF to support their operations.
Experience Step-Up Fund
This particular scheme cum initiative fuels tourism development through visitor-centric product development, adoption of modern technology, amenity enhancements, and infrastructure upgrades.
Leisure Events Fund
This scheme primarily benefits event management companies seeking increased footfall and new revenue streams.
Tourism Product Development Fund.
This scheme is dedicated to businesses specializing in refurbishments, facility upgrades, or product enhancements.
Business Opportunities for Overseas Investors
The hospitality sector in Singapore offers viable growth opportunities in the following business domains:
Hotel Business
The hotel business is a clear choice for those seeking profitability and sustainability within hospitality organisations in Singapore. Foreign investors can enter this business domain by incorporating a Singapore company. Doing so will simplify the buying or leasing of commercial properties.
Additionally, it will give them access to government incentives designed to support startups and emerging businesses. However, such access is subject to certain legal requirements. For example, hotels in Singapore (whether owned by a resident or a foreigner) must comply with energy-reduction requirements to meet the national sustainability goals.
Travel Recommendation App
A majority of tourists nowadays rely on travel apps to plan their vacations, book hotels, and more. This has created a steady market demand for travel recommendation apps, making it a highly promising venture to explore in 2026. From booking commissions to affiliate earnings, a trade recommendation app can open the door to several income streams.
Food Service Business
The thriving tourism sector has served as a catalyst for the foodservice industry. The high tourism footfall in 2024 in areas like Orchard Road, Marina Bay, and Sentosa has transformed the cafes, bars, and restaurants into a viable investment choice. For investors, this sector offers a wealth of opportunities.
How to Start a Hospitality Business in Singapore?
Upon exploring the potential of the hospitality sector in Singapore, it is time to take a look at how you can set up your own venture:
Step 1: Select a Right Niche
Opt for a niche/industry that resonates with your expertise and budgetary requirements. Also, take industry-specific compliance into account, as it will add to the operating cost. It is recommended to consult an expert before you make a move.
Step 2: Contact a Seasoned Expert
Get in touch with a professional or a seasoned expert specializing in offshore company formation, local licenses, and certifications. They will guide you through the administrative processes, so you have a clear understanding of what you need to get started.
Step 3: Reserve a Business Name
The next important step is reserving a legally compliant business name. You can visit the ACRA, the governing body, to scout and reserve a perfect business name.
Step 4: Incorporate the Business
Once you have completed the name reservation, proceed to incorporate your business with a suitable legal structure. Some notable structures you can choose from include Partnership, Limited Partnership, Limited Liability Company, and Private Limited Company.
Step 5: Secure industry-specific licenses
Once your business is registered, apply for industry-specific licenses, such as a hotel license, food shop license, and travel agent license, to formalize your core business activities.
How Can BSW Help?
If you are seeking a hassle-free business setup, partnering with a seasoned consultant like BSW is highly recommended. Business Setup Worldwide (BSW) is a seasoned partner with over 8 years of experience. We offer a comprehensive suite of services that not only simplify the business journey but also elevate performance, whether it's setting up a venture or complying with local laws. BSW is a go-to platform for those starting from scratch and looking to diversify.
Contact us now to book a free consultation; our experts will provide you with a roadmap that truly matters and is game-changing. Contact us now to book a free consultation.
