Hotels' daily rates to climb 1-3% in 2018

But the oversupply of rooms may temper growth.

The average daily rate (ADR) of Singapore's hotels is expected to climb by 1-3%, similar to most Asian countries, except Japan with 3-5% and Korea with 6-8%, Colliers International said.

According to its hotel insight, consumer confidence is likely to strengthen, as Singapore, along with Bangkok and Hong Kong, is expected to firmly remain the leading Asian destinations of choice in 2018

However, the oversupply of hotel rooms in Singapore is likely to temper growth.

Meanwhile, Colliers also anticipates the upturn in the cruise market.

The cruise business is becoming increasingly desirable, especially those with home ports in Singapore

According to data from the Singapore Tourism Board (STB), Singapore’s cruise industry has also enjoyed robust growth in recent years: 411 cruise ships called at its ports in 2016, and the country logged a passenger throughput of about 1.2 million in the same year.

A recent study also found that the cruise industry contributed $706m in direct spend to Singapore's economy in 2016, an increase of about 36% from 2010.

STB said in the ASEAN Tourism Forum 2018 that the country has "much to gain from the increased visitor footfall and spend."

Asia is set to reach 3.7 million passengers by the end of 2017, a startling compound annual growth rate of almost 40% since 2012. This increase was primarily driven by a growing Chinese and Indian market. 

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