DESPITE the deepening economic downturn and dwindling tourist arrivals, French hotel chain Accor is opening not one but two economy tier hotels in Singapore.

The first Ibis brand hotel on Bencoolen Street was officially opened on Thursday morning by Senior Minister of State for Trade and Industry S. Iswaran.

At the same ceremony, Accor Asia Pacific Michael Issenberg also announced plans for a second 241-room Ibis in Novena, which will be ready by 2011.

In his speech, Mr Iswaran said in the current climate, Ibis economy hotels will appeal to travellers seeking greater value in accommodation choices, as they are likely to switch from long-haul travel to shorter ones.�

He noted that there has been a growing demand for value-driven accommodation, with occupancies for economy and mid-tier hotels averaging over 80 per cent for the past two years.�

Turning to the Singapore tourism industry, which expects a fall in visitor numbers this year, Mr Iswaran said while the immediate outlook is sober , the new Ibis hotels and other major tourism projects in the pipeline will help lure tourists back here.

He said tourism will create an estimated 12,000 new jobs in hotels, the integrated resorts and other tourism-related sub-sectors this year.