Enough hotel rooms for tourists

Source : Straits Times - 16 Sep 2008

THE Singapore Tourism Board will work closely with other agencies to ensure enough hotel rooms here in tandem with future tourism growth.

But market forces should determine the type and price of hotel rooms, Senior Minister of State (Trade and Industry) S. Iswaran said yesterday in response to a question.

He assured the House that Singapore remained a competitive travel destination. The average room rate here of $250 is comparable to rates in Hong Kong and Tokyo, and lower than the rates in New York and London.

Nominated MP Gautam Banerjee asked whether room shortages and steeply rising rates had turned away potential tourists and meetings.

He said there should be more three- and four-star hotels as cost is a key factor for visitors from new markets.

But Mr Iswaran said it was for travel industry players and hoteliers to assess the demand for such rooms.

A significant number of hotel sites, with space for more than 5,000 rooms, had been made available, he added.

Three- and four-star hotels have also come up in several locations like the Serangoon Road area where demand for them is concentrated.

Old government buildings can also be used to boost potential supply.

‘The important thing is for the market players to assess where these needs are and to respond to them,’ he said.