More hostels sprouting up in Chinatown, Little India
Competitive pricing is driving growth but new players may squeeze profits
Cheap and cheerful hostels that offer a bed for as little as $25 a night are thriving here as tourists look for alternatives to pricey hotel rooms.
The number of hostels around town has shot up over the past year, with Little India and Chinatown the most popular areas.
"As of July 2013, there were a total of 56 licensed hostels in Singapore, compared with 46 in 2012," said Ms Heng Li Lang, director, hotels, at the Singapore Tourism Board (STB).
Pricing is clearly driving growth with a stay in a hotel costing on average $261 a night, said property consultant Knight Frank.