The global economy has cause most of the South East Asian country to improve economically. Statistically Singapore is the best performer compared to other countries around the world. Its national income per head is higher than countries like Spain and New Zealand. Despite being a small country Singapore, manage to compete with the big guns in the world. Singapore only resources would be its 4 550699 population. Thus it depends mostly on its workforce. How does Singapore manage to get to where she is? This is due to having a good and efficient government.
The government of Singapore encourages both private and government based company to invest on the tourism industry. Tourism industry in Singapore is the main source of its revenue. Statistics for the Singapore Tourism Board shows that in the year 2007 itself, Singapore welcomed more than 10 million tourists. Approximately more than 5% increase from previous year. For the full year of 2007, Indonesia, China, Australia, India and Malaysia were Singapore’s top five visitor-generating markets. These markets accounted for 51% of total visitor arrivals. It is shown in fig 1.1. Fig 1.1 Fig 1.1 shows the number of tourist mostly comes from our neighbouring country Indonesia and fellow Asian China. This statistics shows that Singapore tourism services are high in demand as the expansion of low cost carriers, attractive air and travel promotions, strong currency appreciation and aggressive in-market campaigns, bolstered the growth in visitor arrivals
Tourists Population in Singapore
As the hotel industry belongs to the tourism industry, the increase in the number of tourists coming to Singapore would also result in the increase in demand for hotels services. Fig 2.1
Fig 2.1 shows the Hotel Standard Average Occupancy rate form the year 1997 to 2007. For the past 10 years the average occupancy rate of a hotel has increased from 79% to 87%. These percentage changes in occupancy rate shows the change in demand and supply of the consumer and the service supplier, the hotels itself.
The increase in the number of tourists coming to Singapore was due to the change in price of related goods. Price of related goods would mean the price of other services that would