Tourist arrivals could grow 7% y-o-y

Thanks to a slew of events and attractions in the coming months.

Tourist arrivals in Singapore were a record 1.2m for the month of Apr. Yoy growth was commendable at 9% albeit lower than previous months’ 13-16%.

According to CIMB, Apr’s growth was led once again by Asian travellers and likely the bi-annual Food & Hotels Asia fair in the month. REVPAR grew 10% yoy to S$226.40/day, the result of stronger occupancy (+1% pt) and ARR (+9% yoy), particularly for upscale hotels.

Here's an outlook from CIMB analyst Tan Siew Ling:

We estimate visitor arrivals of 14.1m (+7% yoy) and REVPAR growth of 6% yoy for 2012; there could be upside with more events and attractions in store for the year. International Cruise Terminal had commenced operations in late May while CommunicAsia and the opening of Gardens by the Bay should contribute in Jun.

The performance of upscale hotels was strong, with consistently high occupancy of 90% and above-peers ARR growth. REVPAR for mid-tier hotels was up 1% yoy, where ARR growth took up some slack from lower occupancy.