Why are hotel prices in Singapore so high right now?
Hotel room rates in Singapore have risen to their highest level in nearly six years as tourism recovers in the city-state after the government eased coronavirus measures.
The average fare in June was S$238, the highest level since September 2016, according to data from the Singapore Tourism Board.
This is an unexpected side effect of the rebound in travel, after Singapore in April became one of the first major regional economies to announce it would end all testing for inbound vaccinated travelers as the government continues efforts to live with Covid-19.
A resumption of major conferences and events has also drawn visitors, and STB data showed a nearly 12-fold increase in arrivals in the first half of 2022 compared to the same period a year ago.
Singapore expects to receive between 4 and 6 million visitors in 2022, although tourist flows will face headwinds for the rest of the year due to the volatility of the global political and economic environment, as well as of the evolving health situation, the STB said last week.
As previously reported, part of Singapore’s path back to pre-Covid prosperity and tourist appeal will include the return of the Formula 1 GP to the twisty Marina Bay Sands street circuit from September 30 to October 2.
Qantas has now resumed its flagship Kangaroo Route A380 from Sydney to London via Singapore – reopening its first class lounge in Singapore in the process – as well as direct flights to Singapore from Sydney, Melbourne, Brisbane and Perth.
Singapore Airlines‘ reconstructed timetable now shows four daily flights from Sydney and Melbourne to Singapore, with the airline also opening four new lounges at its Changi T3 hub, ranging from the KrisFlyer Gold lounge for frequent flyers to new lounges in business class and first class.
ironically, while hotel prices in Singapore have skyrocketed, airfares from Australia to Singapore are steadily falling, although it should still take some time before they reach 2019 levels.
If you’re heading to Singapore, take the time to see this amazing city ‘like a local’ and also check out some of the Michelin-rated value-for-money eateries, ranging from eateries to mall stalls.
Additional reports from Bloomberg