It seems wilderness experience is not yet over in the economy hotels in Singapore. Hotels are yet to recover from the recession the nation experienced last year ant it may take a while before hotels recover from the dwindling economy.
Hotels to endure another year of dwindling economy
From the analysis, it is predicted that economy hotels will have to suffer another year when the revenue will drop at 5.4 percent, and this is not expect to improve until 2018.
The revenue per room has to be in free fall. Since the recession ant it is not expecting to improve anytime soon. At least not until sometime next year, according to the report. This may be a bad news to investors in the hospitality industry. This is because leisure travel and lodging among the people are at a low due to the economic challenges the nation had last year.
Revenue per room: economy tier suffer most
The tourism board in Singapore that is in charge of the hospitality industry, ranks the hotels into four categories. Depending on certain factors like the size of the room, room rates, location, and the features they offer like; the economy, the upscale, the mid-tier and the luxury.
The luxury, according to the report posted a dwindled fortune of 1.3 percent that was the least; the economy tier hotel posted a worse figure of 5.4 percent in the last year under study.
Economy tier to have record such a huge loss must be connected to the fact that many people in Singapore had a challenging year in 2016, with high numbers of retrenchments especially the degree holders.
No respite until 2018
According to the report, hospitality fortune may continue on the slope until 2018. This may not be a good news for investors and people that are already involve in the industry. However the nation’s economy has a way of influencing each sector in a unique way.
Singaporeans may need more time to readjust to the new life before they can reconsider spending on leisure once again.
The future of hospitality industry may be in focusing on tourism, encouraging foreigners to visit the beautiful, clean and lovely Singapore in order to jump-start the hotel business that was once a thriving sector of the economy.
It may be a hard blow to the system, but with determination, and perseverance. Hence the hospitality will be a booming industry soon, but how long it will take may be a difficult question to answer.
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