MACROECONOMIC INDICATORS OF SINGAPORE HOTEL PERFORMANCE

Abstract

An examination of the real estate hotel sector has indicated that there is a lack of a method for hotel investors to develop a more precise forecast of hotel performance in a macro perspective. With the increasing relational ties across sectors, an accurate and comprehensive market analysis requires a study perimeter beyond the specified market. This paper also aimed to make use of macroeconomic analysis on hotel real estate market to enable hotel investors to develop a more comprehensive market analysis by factoring into influences beyond the specified market. The principal task in this research was to provide evidence of significant correlation between Singapore hotel performance and national income (underlying element in macroeconomic indictors), leading to a macro perspective analysis of Singapore hotel performance for hotel investors. A set of significant macroeconomic indicators was highlighted to provide a macro perspective analysis. Each indicator was supported by the basic fundamental economic theories with respect to Singapore hotel market dynamics. On the whole, the findings showed that macroeconomic indicators are significantly correlated with Singapore hotel performance. Although they did not provide a high explanatory for the hotel performance trend, useful insights could be drawn. Business travellers, most of which generated by the manufacturing sector, are important for hotel performance.