Exciting investment opportunities for Singapore's hospitality sector

To ensure that Singapore remains a choice destination, the Singapore Tourism Board (STB) launched the Tourism 2015 roadmap, charting growth opportunities and strategies for the tourism sector - a result of which is a tourism landscape that has transformed over the last few years.

Some of these attractions include the Singapore Flyer, the world's largest observatory wheel which launched in March 2008; the 2008 FORMULA 1 SingTel Singapore Grand Prix in September 2008; and the upcoming two integrated resorts - Marina Bay Sands and Resorts World at Sentosa - opening in 2009 and 2010 respectively.

These exciting developments are expected to create a catalytic effect on the tourism and hospitality sector.

By 2010, visitor arrivals are expected to surge to 14 million.

The average number of visitors in Singapore at any one time is anticipated to increase from the current 90 000 to 140 000, a substantial 55% increase.

Over the next three to four years, an estimated 15,000 hotel rooms will be added to the current room inventory of over 37,000 rooms to meet the projected demand created by this holistic and sustainable growth of the tourism sector.

To this end, the Singapore Tourism Board has been working closely with the Urban Redevelopment Authority of Singapore and the Singapore Land Authority to identify more sites for hotel development, as well as unoccupied state buildings that can be developed into hotels.

Plans have already been made to develop more hotels in key tourism or business areas at Singapore's Civic & Cultural District, Southern Waterfront, Singapore River, Chinatown and Central Business District.

"As part of our overall tourism strategy, Singapore will continue to pursue developmental projects that help us expand our diverse tourism offering and ensuring greater vibrancy and excitement for our visitors," said Jason Ong, Area Director for Middle East and Africa, Singapore Tourism Board.

Singapore has enjoyed four successive years of record growth in tourism receipts and visitor arrivals from 2004 to 2007.

In the hotel sector, average occupancy rates and average room rates also reached new highs last year.

The average occupancy rate reached 87% in 2007, 1.7 percentage points over 2006 while the average room rate reached a new high at $140 ($202) or an increase of 23%.

Total room revenue also rose 23% over 2006 to reach$1.25bn (S$1.8bn) and Revenue Per Available Room (Revpar) grew by 26% to reach US$122 ($176).