They are one of the options being explored to address tight room supply
SINGAPORE) Visitors may one day sit inside their floating hotels and admire Singapore's coastline, but this is unlikely to happen in time for the Formula One race in September next year.The Singapore Tourism Board (STB) said, however, that this novel form of accommodation, which it is exploring, could alleviate the overall tight hotel room situation here.
The Business Times reported on Thursday that floating hotels could be commissioned to ease the room crunch that is expected during the inaugural Singapore Grand Prix to be held on Sept 28, 2008, and that existing cruise ships might be retrofitted with hotel-like facilities and moored off Changi or Labrador Park to provide up to 1,000 rooms each.
But STB said in a statement yesterday that 'even if we are to proceed with the floating hotel concept, it is unlikely to be ready by September 2008 when Singapore hosts its first Formula One Singapore Grand Prix'.
'The STB's intent in exploring the possibility of introducing floating hotels in Singapore has always been to alleviate the current tight hotel room situation, and not specifically to address the needs of a particular event,' said Caroline Leong, director of STB's travel and hospitality business.
She added: 'Discussions on the possibility of developing floating hotels are still in its exploratory stage. We have yet to receive a firm proposal. Should there be firm interest from investors, an in-depth feasibility study will have to be undertaken with the relevant government agencies to establish the appropriate location and the necessary infrastructural developments required for such a floating hotel concept to work.'
She said exploring alternative accommodation is part of ongoing efforts to offer more hotel options because of the tight supply situation. Singapore's tourism sector has posted strong growth in visitor arrivals over the last three years, with a new record of 9.7 million visitors and $12.4 billion in tourism receipts set last year.
The hospitality industry also continued its growth trend with the average occupancy rate (AOR)reaching a record high of 85 per cent in 2006. The average room rate (ARR) also touched a peak.
The strong performance has continued this year, with the first half of 2007 growing a strong 9.0 per cent in tourism receipts and visitor arrivals rising 5.2 per cent compared to the same period in 2006.
Hotel occupancy and room rates are now at all-time highs, with the ARR from January to June 2007 increasing by 19.5 per cent to $192, while the AOR reached 86 per cent. Revenue per available room (RevPar) hit $165.9 and gazetted hotels in Singapore generated total room revenue of $854.4 million, said STB.
'These developments have triggered interest among investors to build more hotels in Singapore,' said Ms Leong, adding that STB has been working closely with the Urban Redevelopment Authority to identify more Government Land Sale (GLS) sites, so that the hotel sector can ride on the favourable environment. Eight GLS sites have been sold since August last year, and will contribute some 2,700 additional rooms.
'The STB has been approached by investors who are not only interested in building green-field hotels, but also those who are keen to bring in other creative accommodation concepts such as floating hotels and the adaptive re-use of existing buildings,' she said.
The board said it welcomed the interest because this is in line with its ongoing efforts to provide visitors with a wider choice of accommodation options, as well as ensuring that there are sufficient hotel rooms to meet its long-term target of welcoming 17 million visitors by 2015.
And while the floating hotel idea is still being explored, it was received enthusiastically by Philip Ho, general manager of online travel retailer Zuji Singapore. 'Even with the vessel anchored, the views would be magnificent. Imagine how amazing the sunset would look from Labrador Park,' he said.
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