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Singapore average room rate dips in Q2 despite slightly higher tourist arrivals
[SINGAPORE] Hotel rates and occupancy for the second quarter of 2025 fell on a yearly basis, even as the number of international arrivals picked up slightly, Singapore Tourism board (STB) data showed on Thursday (Jul 31). But overall room revenue grew marginally.
In Q2, Singapore hotels posted an average room rate (ARR) of S$263.83, down 1.1 per cent from the year-ago period’s S$266.89.
The highest ARR within the quarter was recorded in May – when Lady Gaga performed four shows at the National Stadium, marking her only concert stop in Asia on her Mayhem Ball tour – at S$267.98.
But this still marked a year-on-year fall, down 1.1 per cent from May 2024’s S$270.90.
The May 2025 ARR was also only a touch higher than April’s S$265.77 and June’s S$257.27, both of which were down 1.2 per cent year on year.
Other hotel industry indicators also dipped on a yearly basis.
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Revenue per available room (RevPAR) fell 1.7 per cent to S$205.15, from S$208.77 in Q2 2024. Year-on-year declines were recorded across April, May and June.
Singapore hotels’ average occupancy rate stood at 77.76 per cent in Q2 2025, down from 78.22 per cent in the year-ago quarter – though this was dragged largely by June, as April and May marked marginal improvements in average occupancy rates.
Overall room revenue gained 0.6 per cent on the year to S$1.22 billion in Q2 2025, from S$1.21 billion. April and May 2025 reported slightly higher room revenues year on year, but June takings were lower.
Across all measures, May was the best-performing month in the quarter.
The hotel data came as international visitor arrivals (IVA) rose 4 per cent year on year to 4.02 million in Q2 2025, from 3.87 million visitors in Q2 2024.
This was led by a 7.6 per cent jump in IVA in May to 1.37 million tourists, followed by April’s 4.5 per cent increase to 1.4 million. In contrast, June 2025 had a 0.3 per cent slip in tourist arrivals to 1.25 million.
China remained the top IVA source in the quarter, with 646,699 tourists, though this was down 2.1 per cent year on year.
The other top source countries in Q2 2025 were Indonesia (640,279), India (385,788), Malaysia (321,909) and Australia (297,878). The number of visitors from these four locations increased year on year, with Malaysia and Australia recording double-digit growth.
An STB spokesperson noted that Malaysia recorded the highest IVA growth in June, at nearly 21 per cent.
“This strong performance was boosted by Malaysia’s school holiday period, which fell later this year,” the spokesperson said. This holiday spanned May 29 to Jun 9, compared with May 25 to Jun 2 last year.
June 2025 also had long weekends due to public holidays, including the Malaysian king’s birthday on Jun 2 and Hari Raya Haji on Jun 7, “while overall outbound travel was supported by robust economic indicators and a stable ringgit”, the spokesperson said.
“The growth also reflects our regional office’s efforts to promote Singapore, such as a collaboration with global fintech company Wise in May 2025 to encourage Malaysians to do more and spend more in Singapore,” the spokesperson added.
Stepping down quarter on quarter
Sequentially, hotel and arrivals data worsened for the quarter as a whole.
At S$263.83, ARR in Q2 2025 was lower than the S$272.92 in Q1. Room revenue, at S$1.22 billion, was down slightly from the preceding quarter’s S$1.28 billion. RevPAR fell quarter on quarter to S$205.15, from S$219.84.
Occupancy, at 77.76 per cent, fell short of Q1 2025’s 80.55 per cent.
The 4.02 million IVA recorded in Q2 was also lower than the 4.31 million posted in Q1.
Looking ahead, the STB spokesperson pointed to “more exciting offerings”, including the opening of Resorts World Sentosa’s Singapore Oceanarium, as well as familiar events such as the Formula 1 night race. These are on top of other upcoming concerts as well as meetings, incentives, conventions and exhibitions events.
For the full year, STB expects to receive 17 million to 18.5 million international visitors, contributing S$29 billion to S$30.5 billion in tourism spending.
It welcomed 8.33 million visitors from January to June, and in Q1 raked in S$8.07 billion in tourism receipts.
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