The restrictions placed on international visitors by the Singapore government in order to contain the outbreak of COVID-19 severely impacted the travel industry, including hotels. This was particularly the case for luxury hotels, which rely heavily on the patronage of Chinese tourists to fill their rooms.
In addition, staycations became a more popular leisure activity for consumers in 2021, due to pent-up demand, the limitations on travelling overseas, and little other opportunity for a holiday. With no travel costs, this also enabled consumers to spend more, leading to some upgrading to luxury hotels by some people who may not have used such accommodation before.
Ancillary (non-room) services and curated experiences have helped boost value sales for local luxury hotels, as spending on room bookings has fallen and they have looked for new revenue streams. Technology can be one of the tools used to help hotel players to reach out to consumers.
The Singapore government started to relax its border policy from August 2021 by allowing foreigners from Germany and Brunei who were fully vaccinated to visit the country without a stay home notice period (SHN). Also, visitors with a travel history to Hong Kong or Macao in the last 21 consecutive days prior to their departure for Singapore could apply for an Air Travel Pass (ATP), which allowed them to enter the country without a SHN period if their PCR test upon arrival was negative.
However, although solid growth is expected throughout the forecast period, the level of current value sales is not expected to return to that seen in 2019 even by 2026. Business travellers accounted for a large share of sales in luxury hotels pre-pandemic, and it is likely that some of these travellers will not return, or at least not in the short term.
During May 2020, Six Senses announced the official closure of its two boutique hotels, Six Senses Maxwell and Six Senses Duxton, resulting in a decline in the number of luxury hotels in 2020, following a period of stability. However, players consider that the Singapore market remains lucrative.
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Understand the latest market trends and future growth opportunities for the Luxury Hotels industry in Singapore with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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Luxury: includes luxury and upper upscale hotels. Would generally include 5-star hotels and above, but may include some “4.5-Star” outlets, provided that the brands positioning warrants it. The luxury classification is primarily determined by the brand’s positioning and marketing, which will be at the high-end. Brand examples include Marriott, Hilton, Sofitel and InterContinental.See All of Our Definitions
This report originates from Passport, our Luxury Hotels research and analysis database.
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