The Marina Bay Sands integrated resort in Singapore will add additional hotel rooms in the downtown area, which currently houses nine hotel chains. But existing hotel players see this as a new opportunity rather than a threat.
The tower blocks are now famous landmarks in downtown Marina Bay, and hotels around the vicinity are more excited than concerned with the anticipated opening of Marina Bay Sands.
When completed, Marina Bay Sands will house 2,500 hotel rooms. Some travel agents are expecting about 900 to 1,000 rooms to be available when the integrated resort opens at the end of April.
Competition aside, Fairmont Singapore said that this development by Marina Bay Sands can produce an additional 1.2 million sq ft of meeting and convention space.
Pan Pacific Singapore also noted that even with the increasing room inventory in Singapore, the escalating number of tourist arrivals is expected to soak up the demand.
According to the Singapore Tourism Board (STB), tourist arrivals in the country surged 24.2 percent on-year in February to 857,000 visitors
“With Marina Bay Sands in front of us, the added features and availability of attractions within the vicinity has increased so we are able to market ourselves in a very attractive location,” said Ivan Lee, general manager of Pan Pacific Singapore.
Many travel agents said that near-term room demand is strong due to the economic recovery. Room rates increased 15 percent to 30 percent on-year in Q1 2010.
Some observers do not expect a price war on hotel rates even with the opening of Marina Bay Sands.
“With Marina Bay Sands opening, we understand that their rates will range from about S$420 per room night, attracting more high end leisure and business travellers. Comparatively, the hotels around the Marina Bay area are charging maybe 20 to 30 per cent lower ranging from S$320 to S$360 per room night,” said Alicia Seah, senior vice-president (Marketing & PR) for CTC Holidays.