June 9, 2009 Tuesday
Updated

June 9, 2009
The Great S'pore Stay
Hotels fight downturn by dangling discounts and freebies to reel in S'poreans
By Leow Si Wan
An executive suite of the Regent Singapore (left). The Regent Singapore has seen 80 per cent of its bookings taken by Singaporeans. -- PHOTO: REGENT HOTEL
THIS year's Great Singapore Sale is not just about bargain buys and retail therapy. Hotels, too, are getting in on the act, dangling exclusive deals to get consumers to stay at their premises. And a check with 16 such hotels revealed that Singaporeans particularly are lapping up the special treats.

The Regent Singapore has seen 80 per cent of its bookings taken by Singaporeans for its Early Bird Special promotion that started late last month. Guests pay above $188 for a Superior room inclusive of a buffet breakfast for two - a discount of more than 30 per cent from the usual rack rate.

At Rasa Sentosa Resort, 75 per cent of bookings for its Fantastic Family Fun package were snapped up by Singaporeans - for between $178 and $240 per adult for one night's stay.

Hotels are hoping the retail event of the year will breathe life into an industry winded by the recession - average hotel occupancy rates in April fell 11.9 percentage points to 71 per cent, compared to the figure in the same period last year. Average room rates fell below the $200-a-night mark for the first time since July 2007, plunging 27.4 per cent to $186.

April also marked 11 straight months of declining visitor arrivals - 780,000 foreigners visited Singapore that month, a 6.1 per cent drop compared to the figure in the same period last year.

Ms Lim Ee Jin, assistant vice-president of marketing communications and public relations at Meritus Hotels & Resorts, said it made sense to offer the deals now: 'As the Great Singapore Sale period coincides with the June school holidays, we foresee a strong demand for local hotel stays, especially with more Singaporeans opting to stay in Singapore instead, due to the current economic slowdown and the ongoing global Influenza A (H1N1) outbreak.'

The Meritus Mandarin is offering a Sweet Suite Deal, where guests get a complimentary night and $50 food and beverage credit for use in its restaurants.

Hospitality expert Carl Kjellqvist said the recession could bode well for the hospitality industry, by forcing it to become more innovative and to look for new markets.

The managing partner of Focus Hospitality said: 'Every situation is an opportunity and players who adapt will survive.'

The result, he added, is likely to be competitive and realistic prices that benefit consumers.

Read the full story in Tuesday's edition of The Straits Times.

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