Singapore's occupancy rates decline

Hotel occupancy in Singapore is dropping as of late, due to a decline in tourist arrivals from China. 

According to the Global Post, the average occupancy at the hotels under the Far East Hospitality Trust, including Rendezvous Hotel and Village Hotel Albert Court, dropped to 80.1 percent in the quarter ended June 30, compared with 87.7 percent in the same period a year ago. Not only that, but the ADR also fell to 188 Singapore dollars from 191 Singapore dollars a year ago. 

"Leisure travel demand was also impacted by regional events," Far East Hospitality tells Global Post. "In particular, arrivals from China, Singapore's second largest visitor market, was affected by the imposition of a new restriction by the Chinese government on shopping tours and a decline in demand for Singapore-Malayasia-Thailand tour packages."

Global Post reports that visitor arrivals from China fell by 27.4 percent year on year. 

Channel News Asia reports that Far East Hospitality said companies continued to restrain their travel spending as a result of "lingering macroeconomic uncertainties." 

Looking ahead, the Far East Hospitality Trust said the operating environment for the Singapore hospitality market is expected to remain relatively competitive. "The reduced business travel spending amid the protracted recovery of the global economy, and potential weakness in visitor arrivals could continue to weigh on the accommodation demand in the near term," the article reports.

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