Prospects for the Tourism and Hotel Industry in Singapore

Abstract

Regression models based on economic data indicate that Singapore's tourist authorities' optimistic expectations for tourist arrivals may be on target. The models show a strong effect on tourism from rising income in neighboring regions, while currency-exchange rates may have little impact. The models forecast some 10 million visitors to Singapore in 2000, a projection that is in line with the targets set by Singapore tourism officials. A calculation of the projected number of hotel beds in 2000 shows that the nation could accommodate up to 13 million visitors. While a huge number of tourists might strain local resources and overwhelm the relatively small population, the authors believe Singapore can sustain 10 million visitors without negative repercussions.