Singapore’s small population base belies a strong domestic market which is helping hotels at a time they most need it.
A rich nation that has produced a bumper crop of vacation-hungry residents, Singapore is also now recognised as a domestic market in its own right, with local hotels sighting rising staycations over the last two to three years.
With global economic uncertainties expected to impact the local tourism sector, and as hotels brace for more downward pressure on AOR and ADR from incoming supply this year and next, the presence of a strong domestic market is a welcome sight for urban resorts, including luxury hotels.
CBRE’s latest research shows although arrivals to Singapore YTD November 2015 rose 0.4 per cent year-on-year to 13.8 million, hotel performance remains a challenge as ADR, AOR and RevPAR plunge across all segments to S$245.57 (US$175.42), 85.3 per cent and S$209.57 respectively.
“For 2016, visitor arrivals is expected to improve with STB’s (Singapore Tourism Board) marketing campaigns and strategic partnerships. However, global economic uncertainties will continue to impact the local tourism sector,” said the firm.
STB, hotels, tourism attractions and even inbound agencies may do well to give domestic travel marketing a makeover. Hotels are already having a heyday with it; in fact the local staycation market is a new driver of more creative programmes from the sector and some of these programmes apply to markets which agents can sell to, such as stopovers. Some examples:
• Shangri-La Hotel Singapore woos ladies with a Girls’ Night Out package (includes a bottle of bubbly, personalised wardrobes, facial treatments at CHI, The Spa and afternoon tea); a Families Stay Free scheme (includes a Saturday Night Pool Party with movie under the stars and pool games); and even tries to get social events guests who attend weddings or balls to stay the weekend at the hotel with preferred staycation rates.
• One Farrer Hotel & Spa targets sophisticated adults with its concept of ‘total lifestyle environment’ (see page 30) of art, spa, farm-to-table experiences, culinary demonstrations, indoor shopping, even a personalised visit to one of Singapore’s few remaining wet markets nearby.
“Singapore is now a mature travel market. Even in their own city, Singaporeans want to live it out in style. This is the staycation market we’re after,” said Richard Helfer, chairman, One Farrer Hotel & Spa.
• Park Regis Singapore has a Weekend Wheel & Deal package for locals and stopover traffic. The hotel now offers bicycles for guests to explore Singapore on two wheels.
Allen Law, CEO, Park Hotel Group, which operates four hotels in the city, said the group’s latest hotel, Park Alexandra (see page 28), and Park Hotel Clarke Quay are particularly popular for staycationers, the latter due to its bustling riverfront location while the former unintendedly partly due to its proximity to Sentosa.
“People would rather stay with us than in Sentosa
which can be expensive during the weekends,” said Law. The hotel provides daily free shuttles to Sentosa.
“The staycation market became evident
from around two years ago; the word itself is fairly new. It’s become a uniquely Singapore habit; there is definitely a lot more potential,” Law added.
Hoteliers cited several factors for staycations to continue to rise this year.
Firstly, hotels themselves are hankering after the market as the business climate looks challenging this year. If times were good, it’s unlikely hotels will be coveting staycations as actively.
On the demand side, having been bitten by the travel bug, Singaporeans see staycations as a holiday sandwiched between overseas vacations.
Eighty per cent of the population also live in public housing where facilities such as a great pool are absent. Staycations are ideal for families, and for adults who feel the need to get away from families.
With a softer market, hotels are expected to encourage the growth of staycations further this year.
Shangri-La Hotel Singapore’s director of sales and marketing, Christopher Kang, said: “With the economic slowdown we expect in 2016, strong Singapore currency and increase in hotel room supply, we are definitely expecting a challenging year ahead, however we are very certain of the potential growth in the staycation segment.
“Currently, a minimal percentage of our business stems from staycations hence there is a great opportunity in this segment. We are seeing a 15 per cent year-on-year growth from 2014 to 2015.
“Aside from packages, we are working non-stop to enhance our product. With 15 acres (six hectares) of land, we feature one of the largest swimming pool facilities among Singapore hotels and this is extremely attractive to our guests.
“Moving forward, we will continue to boost our leisure facilities. An orchid grafting programme is underway, and it will be complemented with a self-guided orchid tour and the completion of The Orchid, an architectural wonder of an orchid greenhouse on our grounds,” Kang added.
Millennium Hotels & Resorts’ first M Social hotel, which will open soon in Clarke Quay, expects a fifth of business to comprise staycations, said Paul James, senior vice president global marketing and branding. The hotel, designed by Philippe Starck, has 100 loft-style rooms and 200 standard rooms of 20m2 average room size. Ninety of them residences.
Rates are expected to be well above S$200 for a start, said James.
