HVS Market Report & In Focus: Singapore & By Hok Yean CHEE

In Focus: Singapore provides an overview of Singapore’s tourism landscape and hotel market performance, infrastructure developments, hotel transactions and investments in 2024, an in-focus topic on MICE and the entertainment tourism industry, as well as an outlook.

Key Highlights in 2024

Source: HVS Research

Economic Outlook 

In 2024, Singapore’s economy saw a strong recovery, with GDP growth rising to 3.8% from 1.1% in 2023. This was driven by robust domestic demand, improved global trade, and strength in key sectors like finance and advanced manufacturing. The budget balance returned to a surplus of 0.2% after years of deficits.

Looking ahead, GDP growth is expected to stabilise between 2.4% and 2.6% annually from 2025 to 2029. Lending interest rates, which peaked at 5.5% in 2023, are set to gradually decline, supporting investments. With ongoing initiatives in digitalisation and sustainability, Singapore’s diversified economy remains well-positioned for long-term resilience despite external uncertainties.
 

Figure 1: Economic Outlook 

Source: Economist Intelligence Unit (EIU), January 2025

Economic Performance & Outlook

Singapore remains a leading Asian economy, with GDP projected to grow 2.5% in 2025, moderating from 2024’s 3.8%. While strong domestic demand supports growth, global uncertainties pose risks. A Trump presidency could impact Singapore’s trade, as proposed U.S. tariffs may disrupt exports. Monetary policy uncertainty also looms, with economists split on whether the Monetary Authority of Singapore (MAS) will ease or maintain its stance. To navigate these challenges, Singapore’s focus on innovation, digital services, and sustainability will be key to sustaining long-term economic resilience.

Currency Exchange Outlook

Singapore has historically had a steady exchange rate, however, the Singapore dollar (SGD) is expected to weaken further against major currencies in 2025. Analysts predict this trend due to the MAS recent policy adjustments and ongoing global economic challenges. Additionally, the US dollar’s strength and economic recovery in the eurozone continue to exert pressure on the SGD. The exchange rate (SGD:USD) is expected to fluctuate between 1.34 to 1.36 over the next five years.

Inflation

EIU reported that Singapore’s inflation rate was 2.4% in 2024, reflecting easing pressures on car prices, clothing, and some food items. Looking forward, the EIU predicts a further reduction to 1.9% in 2025, indicating ongoing moderation in price growth. This rate remains above the pre-pandemic average of 1.7% due to potential increases in import costs from trade protectionism. Nonetheless, the overall moderation in inflation highlights Singapore’s robust capability to manage inflation amid global economic challenges.

Interest Rates

Singapore discontinued the Singapore Interbank Offered Rate (SIBOR) at the end of 2024, replacing it with the Singapore Overnight Rate Average (SORA) for greater transparency and reliability. Unlike SIBOR, SORA is based on actual transactions, making it more stable. As of February 2025, the 3-month SORA rate stands at 2.85%, while the 1-month rate is 2.70%. The EIU forecasts Singapore’s lending interest rate to fall from 5.3% in 2024 to 4.8% in 2025, signalling lower borrowing costs, which could stimulate economic growth, investment, and spending.

Infrastructure Developments  2025

• Resorts World Sentosa expansion project (RWS 2.0)
• Debut of Mandai Rainforest Resort by Banyan Tree and Raffles Sentosa Singapore
• DT4 Hume opened 28 February
• Changi Airport Terminal 5 to begin construction
• Works to expand Woodlands Checkpoint to begin

2026

• Ongoing revitalisation of Orchard Road to be a lifestyle destination
• TEL Bedok South and Sungei Bedok to open
• DTL Xilin and Sungei Bedok to open in 2H2026
• 4-km CCL6 will close the loop by adding three stations (Keppel, Cantonment and Prince Edward Road), connecting Harbourfront to Marina Bay station 

2027

• Bay East Garden to open
• 21.5-km North-South Corridor connecting the northern region to CBD will be completed in phases
• First Regional Porsche Experience Centre to open
• JRL (West) Phase 1 comprises ten stations linking Choa Chu Kang to Boon Lay and Tawas

2028

• JRL Phase 2 to be completed
• Founders’ Memorial to open

2029

• JRL to be fully completed

Beyond 2030

• 12-km Greater Southern Waterfront development (2030)
• Marina Bay Sands 4th tower expansion project (2031)
• Eight MRT line – Cross Island Line (2032)
• DTL extension (2035)
• Completion of Changi Airport T5 (2030s – 2040s)
• Tuas Mega Port (2040)
• Long Island Reclamation project
• 18,000 seat arena replacing Singapore Indoor Stadium

Figure 2: Infrastructure Developments (2025 – 2030 and beyond) Source: HVS Research

Singapore Tourism Landscape

According to figures from the Singapore Tourism Board (STB), international visitor arrivals grew at a compound annual growth rate (CAGR) of 5.5% from 2006 to 2019, before declining in 2020 due to the impact of COVID-19. Since 2022, total visitor arrivals have increased year-on-year (Y-o-Y), rising from 6.3 million to 16.5 million. However, Singapore is still experiencing negative growth from 2019 to 2024, with a CAGR of -2.9%. As visitor numbers have yet to return to 2019 levels, we remain optimistic about Singapore’s outlook and anticipate a continued increase in international arrivals from 2025 onwards.

Figure 3: International Visitor Arrivals (2019 – 2024)

Source: STB Signals of Recovery

Singapore’s total overnight visitor numbers have fluctuated significantly over recent years. In 2019, the country welcomed 14.5 million overnight visitors, but this figure plummeted to 2.16 million in 2020 and just 83,860 in 2021 due to the COVID-19 pandemic and strict travel restrictions. Recovery began in 2022 with 4.68 million visitors, followed by a sharp rise to 10.3 million in 2023 and 12.4 million in 2024. While numbers have yet to return to pre-pandemic levels, the steady growth reflects Singapore’s strong tourism recovery, supported by government initiatives, increased flight connectivity, and rising global travel demand.

Figure 4: Overnight Visitors to Singapore (2019 – 2024)

Source: STB

International Source Market 

In 2024, Singapore’s top five source markets remain the same as compared to 2019. China, the largest market, saw a 15% decline in visitor numbers, from 3.62 million in 2019 to 3.08 million. This slower recovery can be attributed to China’s cautious economic outlook, weaker consumer confidence, and a delayed rebound in outbound group travel following strict travel restrictions. Indonesia also experienced a 20% decline, likely due to higher inflation and weaker consumer spending, which impacted long-haul travel demand. India recorded a 15.6% decrease, partly due to domestic economic pressures, rising airfares, and changing travel preferences. Malaysia saw a more modest decline of 2.9%, possibly due to regional travel competition and ongoing economic factors affecting outbound tourism. In contrast, Australia was the only market to show growth, with a 2.7% increase in arrivals, supported by strong pent-up demand and improved air connectivity to Singapore, making it a more accessible destination.

Figure 5: Top Source Markets (2019 vs 2024) Source: STB

Average Length of Stay

The Average Length of Stay (ALOS) in 2024 is 3.6 nights, a slight decrease from 3.8 nights in 2023. This reduction could be due to higher travel costs in Singapore and shorter business trips due to the adoption of virtual meetings. However, it is noteworthy that the 2024 ALOS is still higher than 2019’s average of 3.4 nights. This suggests a trend toward longer stays compared to the pre-pandemic period. As travel patterns stabilise, we anticipate that the ALOS will return to normal levels.

Figure 6: Average Length of Stay and Visitor Arrivals Growth (2019 – 2024)

Source: STB

Purpose of Visit

Singapore’s year-round tropical weather supports a diverse range of tourism offerings. In 2023, the majority of international travellers visit Singapore for holiday purposes, accounting for 67% of visitors. This is followed by visits to friends and relatives (11%) and general business purposes (8%). Notably, 61% of the total travellers in 2024 are repeat visitors to the island state, highlighting its enduring appeal. Singapore’s cultural richness, vibrant food scene, and world-class attractions contribute significantly to its popularity among tourists.

Figure 7: Purpose of Visit (2023)

Source: STB
*Latest data available till 2023 

Singapore Hotel Pipeline 

In a bid to provide ample opportunities for developers to initiate additional supply of hotel rooms, the government periodically updates the list of hotel sites available for sale under the Government Land Sales (GLS). Only one site is available for hotel development under the 2H2024 GLS programme. The 1.02ha River Valley Road could yield up to 530 rooms and is estimated to provide 2,000 square metres of commercial space.

Hotels Opening in 2025:

• Mandai Rainforest Resort by Banyan Tree, 338-key
• Tribute Portfolio Singapore, 132-key
• Mama Shelter Singapore Orchard, 115-key
• Raffles Sentosa Singapore, 62-key
• 86-key Hotel Fort Canning rebranding to METT Singapore by 3Q 2025
• Hard Rock Hotel Singapore rebranding to a 183-key Marriott Luxury Collection (Estimate 3Q 2025)

Hotels Opening in 2026:

• Hotel D’Art Singapore – Handwritten Collection, 502-key

Hotels Opening beyond 2026:

• Movenpick Singapore, 808-key
• W Singapore Marina View, 350-key
• Avani Singapore, 200-key
• Moxy Singapore Clarke Quay, 475-key 

Notable Changes in the Hotel Landscape

• 313-key Capri by Fraser Changi acquired for SGD170 million (SGD543k/key) and rebranded to Dorsett Changi City Singapore in September 2024
• 134-key Hotel Telegraph rebranded to QT Singapore in September 2024

Figure 8: Singapore Hotel Rooms Pipeline (2025 to >2029) Source: Urban Redevelopment Authority
#Planned refers to projects that are not yet under construction but have planning approvals, written and provisional

Singapore Hotel Market Singapore Hotel Market Performance

Singapore’s hotel industry has shown strong recovery post-pandemic, with occupancy (OCC), average daily rate (ADR), and revenue per available room (RevPAR) steadily improving. After a sharp decline in 2020, when OCC fell to 57.3% and RevPAR to SGD89, the sector rebounded in 2022 as travel resumed. By 2023, OCC reached 80.5%, with both ADR and RevPAR exceeding 2019 levels at SGD273 and SGD219, respectively. In 2024, performance further improved, with OCC at 81.8% and RevPAR rising to SGD226.

Looking ahead, Singapore’s hotel industry is expected to see steady growth, supported by strong international demand, major events, and government initiatives to increase the country’s appeal as a destination. OCC is likely to stabilize above 80%, while ADR and RevPAR could continue to rise moderately, driven by sustained travel recovery and increasing visitor spending.

Figure 9: Singapore Overall Hotel Performance (2019 – 2024)

Source: STB

Singapore’s hotel market exhibited a varied performance across different segments. Luxury hotels experienced strong growth in both ADR and RevPAR, while the upscale and mid-tier segments saw higher occupancy levels despite slight declines in ADR. The economy segment faced challenges, with softer results across all key metrics. Demand for high-end stays remains strong, whereas budget hotels are encountering pricing pressures.

Figure 10: Singapore Hotel Segment Performance (2024)

Source: STB

Hotel Transactions and Investment Hotel Investment Market Shines in 2024

Singapore’s hotel investment market has seen notable fluctuations due to economic conditions, investor sentiment, and travel trends. Before the pandemic, 2019 recorded 11 transactions worth SGD2.8 billion, reflecting strong investor confidence. However, activity slowed significantly in 2023, with only three deals amounting to SGD572 million, as high interest rates and economic uncertainty dampened transactions.

• 299-key Citadines Raffles Place at SGD290 million (SGD969.9k/key) in October
• 313-key Capri by Fraser Changi City at SGD170 million (SGD543k/key) in September
• 134-key Hotel Telegraph at SGD180 million (SGD1.34mil/key) in May

In 2025, Singapore’s hotel investment market is expected to see steady momentum as investor interest in prime assets will likely remain high, though transaction volumes may be influenced by global financial trends and interest rate movements. 

Figure 11: Singapore Hotel Transactions (2019 – 2024)  Source: HVS Research & Real Capital Analytics (RCA)

Outbound Hotel Investment Volume

In 2024, outbound investment by Singapore investors decreased by 35.1% in volume from USD2.37 billion in 2023 to USD1.54 billion. Despite the decline, investment activity remained above pre-pandemic levels, indicating a structural shift in investor confidence and capital deployment.

Figure 12: Singapore Inbound and Outbound Hotel Transactions (2024)

Source: HVS Research & RCA

Approximately 73.6% of the total outbound hotel investments were made in Asia Pacific, while 25.3% were made in Europe, the Middle East, and Africa (EMEA). The remaining 1.2% were made in the Americas.

Figure 13: Outbound Hotel Transaction Market (2024)  Source: HVS Research & RCA Meetings, Incentives, Conventions & Exhibitions (MICE) Industry   Source: HVS Research

World-Class Infrastructure

According to the Singapore Tourism Board and a survey done by Overseas Visitors, the MICE industry contributed nearly 1% of Singapore’s GDP in 2019, generating an economic value-add of SGD3.8 billion and attracting 766 thousand MICE travellers.

Iconic venues such as Marina Bay Sands Expo and Convention Centre, Art Science Museum and Suntec Singapore collectively provided over 200,000 square metres of event space, catering to exhibitions, conventions, and high-profile corporate gatherings. According to the International Congress and Convention Association (ICCA), Singapore ranked 2nd globally among cities that hosted the highest number of in-person meetings in 2023. This achievement underscores Singapore’s strong reputation as a premier business and events hub, driven by its world-class infrastructure, strategic location, and pro-business environment.

Pandemic: A Disrupted Industry (2020 – 2022)

The COVID-19 pandemic led to a sharp decline in Singapore’s MICE sector, causing a dramatic drop in international arrivals and event cancellations. With travel restrictions in place, MICE visitor numbers were believed to have plummeted as total visitors had reduced by 86% in 2020. The industry experienced revenue losses exceeding SGD2.5 billion in tourism receipts at the height of the crisis, creating substantial financial challenges for stakeholders.

Figure 14: MICE Travellers (2019 – 2023) Source: HVS Research, STB and Overseas Visitors Survey
*Data not available due to COVID-19

Post-COVID Recovery and Resurgence (2023)

Singapore’s MICE industry experienced a strong rebound in 2023, with the return of large-scale events and increased delegate participation. By the end of the year, the country had hosted over 950 thousand MICE visitors. Technological advancements have played a crucial role in revitalising the sector. The Singapore FinTech Festival (SFF) 2023, one of the largest in-person industry gatherings in the post-pandemic era, drew an impressive 66,000 delegates from 150 countries.

Sustainability has also become a key focus in Singapore’s MICE industry. The launch of the MICE Sustainability Roadmap 2030 aims to achieve 100% carbon-neutral events by the end of the decade. Green venue certifications, waste reduction initiatives, and energy-efficient infrastructure have been widely adopted, positioning Singapore as a leader in sustainable event management. In addition to these sustainability efforts, STB has also rolled out an enhanced Singapore MICE Advantage Programme (SMAP) to further entice MICE event organisers to Singapore. These ongoing initiatives reflect the city-state’s commitment to balancing economic growth with environmental responsibility, ensuring a future-ready MICE industry that remains competitive on the global stage.

Entertainment Tourism Industry (Concerts & Events) Definition of Entertainment Tourism

Entertainment tourism in Singapore, encompassing concerts, sports, and esports events (excluding MICE), has grown significantly in the past decade. Since hosting the inaugural Youth Olympic Games (YOG) in 2010, Singapore has steadily increased its sporting events, attracting international attention. In 2023, the inaugural Singapore Festival of Football saw five European clubs, including Liverpool and Bayern Munich, play in front of over 175,000 fans at the National Stadium, which reinforced Singapore’s reputation as a premier destination for hosting high-profile sporting spectacles. In recent years, concert tourism has also taken centre stage, with Singapore emerging as a major stop for international artists. Taylor Swift’s Eras Tour—where Singapore was Asia’s only stop—has driven an influx of regional and international visitors, boosting the city-state’s tourism industry. Additionally, esports events have gained traction, further diversifying Singapore’s entertainment tourism landscape.

Figure 15: Timeline of Major* and/or New Entertainment Events (2019 – 2026 and beyond)

Source: HVS Research, STB & Overseas Visitors Survey
*Major events that include more than 40,000 attendees

Timeline of major entertainment events

The timeline provides an overview of major entertainment and sporting events held in Singapore from 2019 to beyond 2026, specifically highlighting those that attract more than 40,000 attendees. These events encompass a mix of concerts by global artists, international sporting competitions, and large-scale esports tournaments. In 2025, Singapore will further strengthen its position as a premier concert destination as Lady Gaga’s “Mayhem Tour” makes its exclusive Asia stop in the city.

Looking ahead, Singapore is set to host prestigious multi-year sporting events like the WTA Tennis Finals and the Southeast Asian Games (SEA Games), alongside its annual staples like Formula 1 Singapore Grand Prix and Rugby Sevens. This continuous stream of events underscores Singapore’s strong infrastructure, accessibility, and reputation as a hub for large-scale international gatherings. Ultimately, Singapore’s commitment to hosting more sporting and esports events aside from concerts is a calculated effort to drive long-term tourism growth, strengthen its global standing.

Surging Pre-Pandemic Growth and Disruption

Before COVID-19, Singapore was a thriving hub for concerts and sports events, consistently attracting top-tier artists and global competitions. Between 2015 and 2019, the two stadiums hosted an average of 48 events per year, with 2015 peaking at 65, largely due to the SEA Games. Although the total number of events dipped to 41 in 2019, the increasing number of large-scale events hosted at the National Stadium indicated growing demand for mega-events. However, the pandemic brought the industry to an almost complete halt. In 2020 and 2021, event numbers plummeted, with only 13 and 25 events, respectively, across both stadiums.

Figure 16: Singapore Event Count (2015 – 2024)

Source: HVS Research & Singapore Sports Hub
*Criteria and assumptions were made in the calculations of the events

Surging Demand for Live Entertainment

Post-Pandemic Recovery and Record-Breaking Growth

Effects of Major Concert or Event on the Hospitality Industry Figure 17: Average Rate Seasonality Chart (2023 – 2024) Source: STB

Eras Tour & Formula 1 Grand Prix Impact on the Hospitality Industry

The chart illustrates the impact of major events, such as the Formula 1 Singapore Grand Prix and the Eras Tour, on Singapore’s hotel room rates. Historically, February and March have been among the months with the lowest room rates. However, in March 2024, when the Eras Tour took place in Singapore, there was a notable surge in hotel rates leading to an average increase of 12.5% year-on-year across all tiers, with the most significant increase observed in the luxury segment. This suggests a strong correlation between the event and heightened demand for premium accommodations. A similar effect can be seen in September, when the Formula 1 Singapore Grand Prix takes place in Singapore. During this month, room rates peaked across all hotel tiers, reflecting the strong demand from international attendees.

Figure 18: Occupancy Rate Comparison Chart (2023 March vs 2024 March) Source: STB

Notable Large Concert Destination within Southeast Asia

Figure 19: Comparison of Major Stadiums in Southeast Asia Efficient airport connectivity and public transport systems 

• Seamless airport and public transport links allow international visitors to travel easily between the airport, concert venue, and major attractions

Concert Infrastructure

• Modern, well-equipped venues with state-of-the-art sound, lighting, and stage technology enhance the concert experience for both audience and the performer

Safety & Cleanliness

• Cities with low crime rates, clear emergency response protocols, well-maintained public areas, and well-policed event areas provide a worry-free experience

Trip Cost & Affordability

• Cities with competitive pricing for hotels, food, and transport are more appealing to a wider audience. Government support can attract more performers and enhance the destination’s appeal as a concert hub

Conclusion: Maximising Southeast Asia’s Potential as an International Entertainment Destination

To fully establish itself as a premier international concert destination, a city must offer more than just a high-capacity venue—it needs a robust supporting infrastructure that elevates the experience for both concertgoers and tourists. Key factors include strong flight connectivity, efficient transportation networks, diverse accommodation options, stringent security measures, and proximity to major attractions. These elements not only enhance accessibility but also drive higher tourism spending, maximizing the economic impact of hosting large-scale events.

Outlook 

As Singapore strides into 2025, the tourism and hospitality sectors are poised for significant growth, marked by new attractions, hotel openings, and a robust calendar of events. In 2024, Singapore welcomed approximately 16.5 million international visitors, reflecting a 21% increase from the previous year. This surge, while impressive, remains shy of the 19.1 million visitors recorded in 2019. Tourism receipts for 2024 are projected to reach the upper bound of STB’s forecast, between SGD27.5 billion and SGD29 billion, potentially surpassing the pre-pandemic high of SGD27.7 billion in 2019. Looking ahead, the STB anticipates further growth in 2025, with visitor arrivals estimated between 17 million and 18.5 million, generating tourism receipts ranging from SGD29 billion to SGD30.5 billion. 

Singapore’s appeal as a premier tourist destination is set to be enhanced by several new attractions and events in 2025:

• Minion Land at Universal Studios Singapore: Opened on 14 February 2025, this new themed area features attractions such as the world’s first “Buggie Boogie” ride, a Minion dance party carousel, and the “Despicable Me Minion Mayhem” simulator
• Singapore Oceanarium: Opening in the first half of 2025 at Resorts World Sentosa, the former S.E.A. Aquarium will triple in size to become the Singapore Oceanarium, featuring a deep ocean exhibit and a research centre
• Disney Adventure: Asia’s first Disney Cruise sets sail in December 2025, with Singapore as its home port for at least five years

Singapore’s hospitality landscape is also expanding with several new hotels. 2024 witnessed the debut of distinguished establishments such as The Singapore Edition. The Standard Singapore and the world’s largest Mercure hotel. These hotels have significantly enriched the city’s hospitality landscape, attracting both international visitors and locals. In 2025, the opening of Raffles Sentosa Singapore and Mandai Rainforest Resort by Banyan Tree is set to enhance the city’s hospitality offerings.

Singapore’s tourism allure is further amplified by its commitment to sustainability and innovative attractions. Visitors can engage in eco-friendly experiences, from exploring the verdant Southern Ridges to kayaking in the waters of Pulau Ubin. Despite the positive momentum in tourism, the Average Daily Rate (ADR) for hotels is projected to moderate in 2025 as hoteliers are adopting flexible pricing models to balance occupancy and revenue, ensuring that Singapore remains an attractive destination in a competitive regional market. In summary, Singapore’s tourism and hospitality sectors are navigating a period of rejuvenation and growth.

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