According to data from the Singapore Tourism Board (STB), hotels recorded higher room rates, stronger occupancy, and improved revenue in Q1 2026. The average hotel room rate rose by about 1.6% year-on-year to S$274.96, while revenue per available room increased by 4.8% to S$228.45. Overall occupancy also improved to about 83% for the quarter.

Tourist arrivals also grew by around 2.8% to approximately 4.4 million visitors, supported by seasonal travel peaks such as the Chinese New Year period and stronger demand in February and March after a weaker January.

January saw a temporary decline in both arrivals and hotel performance, but February rebounded strongly, followed by steady gains in March.

Despite this positive performance, the outlook remains cautious. STB warned that global conditions remain unstable, with geopolitical tensions and economic uncertainty likely to affect travel demand in the coming months.

One of the main concerns is rising airfares. Airlines are facing higher operating costs due to global market volatility, including fuel price pressures linked to the Iran conflict. These costs are expected to be passed on to consumers, making travel more expensive.

Because of this, industry analysts expect demand growth to slow, as higher ticket prices and weaker global economic confidence could discourage some leisure travel in the near term.

In summary, while Singapore’s tourism sector performed well in Q1 2026, the outlook for the rest of the year is more uncertain due to inflationary pressures and geopolitical risks affecting global travel.