Page 18 - ar2011

16 CDL Hospitality Trusts
Market Review
Singapore Tourism Market
2011 was a record year for the tourismand hospitality
sector. 13.2 million visitors arrived in Singapore,
the highest number of tourists received by the
city-state in a year according to statistics from the
Singapore Tourism Board (“ STB”). This amounted
to a 13.1% increase year-on-year. Visitor days are
estimated to have been 49.5 million, an increase
of 11.3% over the previous year. Tourism receipts
reached S$22.2 billion in 2011, in line with the year’s
forecast range of S$22.0 billion to S$24.0 billion.
This is an increase of 17.4% over the previous year,
driven by major tourist draws such as the Integrated
Resorts (“ IRs”), the Formula One race and MICE
events. Major new attractions such as Gardens
by the Bay, West Zone (Equarius Water Park and
Marine Life Park) and the new International Cruise
Terminal, will support this growth in visitor arrivals.
As such, CBRE Hotels expects visitor arrivals of
13.5 million to 14.5 million to be a realistic range
for 2012. In addition, the infuence of short term
occurrences, such as political uncertainty in Thailand
and Tohoku-Kanto Earthquake shaking northern
Japan on March 11, have encouraged visitors to
come to alternative destinations such as Singapore.
In 2011, Indonesia (2,591,701), People’s Republic
of China (“PRC”) (1,577,420), Malaysia (1,140,677),
Australia (956,007) and India (868,963) were
Singapore’s top fve visitor-generating markets.
These markets accounted for 54.2% of total visitor
arrivals. In 2011, more than 75% of the visitor arrivals
were from the Asia Pacifc region, indicating that
Singapore remains an attraction for travellers in the
region where economic growth remains positive
with a limited exposure to the US/Europe tourist
markets. The demand expectations for MICE and
conferences in the island for this year are positive,
largely driven by the two IRs.
In 2011, some 46.5 million passengers passed
through Changi Airport which was an increase
of 10.7% over 2010. More passengers can be
expected to pass through Changi Airport in the
future. In September 2011, India’s IndiGo began
to offer flights from Singapore to New Delhi,
contributing to the fast growing low cost carrier
sector at Changi Airport. Medical tourism demand
is also growing strongly. Singapore continues to
invest in resources and skills to differentiate itself
from low-cost medical destinations, in order to be
regarded as a leading medical hub in Asia. Patient
fow in medical tourism tends to follow low cost
airline routes and shorter fight times.
Singapore Hotel Property Market
Existing Supply
In 2011, the number of gazetted hotels increased by
10 to 149 and the net number of rooms increased by
1,944 to 41,687, according to CBRE Hotels, a 4.9%
increase in room count (after taking into account the
closure of Lion City Hotel and Copthorne Orchid
Hotel in 2011, representing 607 rooms). New supply
of hotel rooms in 2011 came mainly from V Hotel
(888 rooms) and Oasia Hotel (428 rooms). While
the IRs provided signifcant new supply, they have
and are likely to continue to generate signifcant
additional demand for both the tourism industry,
and the economy in general.
The highest number
of tourists received by
the city-state in a year
according to statistics
from the Singapore
Tourism Board.
million
visitors 13.2
Market Review of Hotel Property Sector