Ah, where are the 'good' old days of Sars, when you could walk unobstructed down Orchard Road and book a room for a song in any of the upmarket hotels in town. This New Year, most hotels were reporting full occupancy despite sharp increase in prices. The Singapore Tourism Board (STB) is jubilant that room occupancy is at its highest in a decade.
In November alone, hotels recorded S$111 million ($517 million) in room revenue, an increase of 25 per cent year on year. The average room rate was estimated at S$145, up 17.7 per cent, and the average occupancy rate had reached 87 per cent. One of the main reasons for this boom is the constant flow of business visitors attending trade events.
The country has been able to successfully position itself in the 'Mice' (meetings, incentive travel, conventions, exhibitions) business, and is starting to reap the fruits of its hard work.
The International Olympic Committee session and international business conferences - like the AdAsia and BroadcastAsia meetings - drew thousands of business visitors on expense accounts. Next year, the trend will continue, with the International Monetary Fund and World Bank annual meetings expected to bring in 16,000 visitors.
Only a year or two ago, too many rooms were competing for business, forcing prices down. So restrictions on redevelopment were lifted for some hotels - allowing them to use some units as residences - and cutting the number of rooms on the market.
Now the call has come for more hotel rooms to meet the need. Faster than you can check out of a hotel, the government has already announced that three hotel sites will be made available through its sales programme.
