SHORTAGE OF HOTEL ROOMS

Mr Teo Chong Tee asked the Minister for Trade and Industry whether there is a shortage of hotel rooms and, if so, what measures he proposes to take.

The Minister for Trade and Industry (Mr Yeo Cheow Tong): Mr Speaker, Sir, there were a total of 25,440 rooms in 75 gazetted hotels in Singapore at the end of 1994. The average occupancy rate for the whole of 1994 was 86.6%. There is therefore no shortage of hotel rooms at the moment.

Over the next few years, the number of hotel rooms will increase to meet the projected increase in demand for hotel rooms. Between 1995 and 1998, we expect the number of hotel rooms to grow by an average of 8% per annum. By the end of 1998, this will yield a total of 10,165 new rooms.

This year, we will have nearly 3,000 new hotel rooms, an increase of 11.7%. New projects scheduled for opening this year include the Traders Hotel, Ritz Carlton Hotel and the Inter-Continental Hotel. Total visitor arrivals this year are expected to increase by 5-7%, with slightly over 70% expected to use hotel accommodation. Therefore, the additional demand for hotel rooms arising from the increase in visitor arrivals this year can be met by existing hotel rooms and the new hotel rooms coming on-stream.

Mr Teo Chong Tee: Most of these hotels belong to the five star category. I wonder whether the Minister will consider those hotel rooms for budget travellers in view of the rising number of such people into Singapore.

Mr Yeo Cheow Tong: Sir, I believe a few sites which have been tendered out were not for five-star hotels.