In February 2024, the average room rate (ARR) for Singapore hotels rose to S$298.47, reflecting a 6.7% increase from January’s S$279.78, according to data from the Singapore Tourism Board (STB). This rise in room rates comes alongside a modest increase in international tourist arrivals, which reached 1,436,571 visitors, slightly up from January.

China led as the top source of visitors, surpassing Indonesia, with the UK entering the top five for the first time since March 2020. February’s tourist boost was largely attributed to seasonal factors, including the Chinese New Year, as well as the introduction of a mutual 30-day visa-free scheme between Singapore and China.

Hotel room revenue also saw a significant jump, growing to S$453.8 million in February, a 7.3% rise from the previous month. Revenue per available room (RevPAR) increased to S$247.70, up 14.2% from January, while average occupancy rose to 83%, from 77.6% the previous month, mirroring pre-pandemic levels.

Room rates increased across all hotel categories in February, with the luxury segment seeing the highest rates at S$679.37, followed by the upscale, mid-tier, and economy segments. Year to date, Singapore’s ARR has climbed 5.9% to S$289.15, with overall room revenue rising by 31.3%.

The recovery in Singapore’s tourism sector continues to surprise experts, with visitor numbers from China reaching 96% of pre-pandemic levels. However, concerns remain about sustainability, particularly given China’s economic slowdown and heightened competition from other regional destinations.

STB forecasts between 15 to 16 million international visitors in 2024, indicating strong potential for continued growth in Singapore’s tourism and hospitality sectors.