SINGAPORE HOTEL INDUSTRY ANALYSIS
Prepared by: Nazia Husain
Marketing 558: Marketing Across Cultures
TABLE OF CONTENTS
EXECUTIVE SUMMARY 3
Economy of Singapore 8
MACRO-ECONOMIC REVIEW OF SINGAPORE 11
Economic Factors 11
Macro-environment factors and hotel industry 12
INDUSTRY ANALYSIS 14
Hotel Demand 15
Hotel Supply 16
COUNTRY CLUSTER ANALYSIS 17
Regional Analysis in the Hotel Industry 17
Singapore Industry Analysis 17
Singapore Hotel Association 20
Corporations Expanding Into the Region 22
CONCLUSIONS AND RECOMMENDATIONS: 23
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The growth of the automotive and tin industries also increased demand for these items and the consumer electronics industry have contributed massively to its manufacturing sector. As a seaport town for many centuries, Singapore has always had an association with the hospitality and services industries.
One of the main sections of this paper examines the economic factors that affect Singapore and the region. Singapore enjoys a relatively stable political and economic growth outlook and thus it is seen as a big commodity in the region. Many natural disasters in the region, along with the Euro zone and Arab Spring Crises have caused a modest growth in Singapore’s economy; however, tourist and hotel demand continues to grow.
The government plays a large part in creating an atmosphere that is conducive to businesses looking to expand in Singapore. Currently there are 7,000 multinational businesses in Singapore and by examining steps the government is taking to ensure a vibrant tourist city, through language, transportation and religious factors; one is able to determine the impact it will have on the growth of hotels.
The paper also examines nearby regions and their attractiveness for tourists and how Singapore compares in terms of visitors by location and the amount of new hotel business deals that have been taking place in the industry. As hotel sales and acquisitions now account for about 25% of new business deals in Singapore it is imperative the country maintains its competitiveness with nearby regions such as Hong Kong, China and Tokyo.
After examining these factors, conclusions and recommendations are provided for hotels looking to expand in the region.
Singapore is one of the world’s most densely populated countries. Set in the Asian-Pacific region it was unknown to the West until the 19th century. However, the island was known to mariners by at least the third century and by the seventh century served as a trading outpost between the Malay, Thai, Javanese, Chinese, Indian and Arab traders. During this time period, it was controlled by regional empires and Malayan sultanates. In 1511, Portuguese explorers captured Malacca, forcing the Sultan to go south where he was able to establish a new regime which included Singapore. When the Portuguese subsequently proceeded to burn down the trading post at the top of the Singapore River, the country was left abandoned and cut off from the world.
The early 19th century saw a return of the Malay planting activities to the region and the island was shared with the native people and the Chinese planters. Sir Thomas Raffles, of the British East India Company, set up a trading post in the region after getting permission from the local Malay official and called it Singapore after its ancient name. The British East India Company took over the island in 1824. It led to the city of Singapore being a major port and becoming known as a major trading port in the region. In 1826,...