Chart of the day: See how tourists’ average length of stay has slowly deteriorated

It has shortened to just 3 days.

Even with the influx of tourists, Singapore hoteliers still have less to cheer on as the average length of stay (ALOS) for tourists has deteriorated rapidly since its peak of 4.4 days in 2014.

According to a report by UOB Kay Hian, overall ALOS for all tourists sinking 6.7%. It was mainly due to the declining ALOS for Chinese tourist, which dipped 24% to around 3 days.

"This might well be explained by increased Chinese land travel to Singapore from Malaysia, propelling overall Chinese arrival growth," Chang noted.

The brokerage firm pointed out that the proportion of Chinese land travel to Singapore has risen from a low of 15.7% in 2014 to year-to-date high of 25.2% in 7M16.

More so, majority of Chinese tourists have tighter purse strings. Chinese per capita expenditure on hotels fell 5% YoY to $211 in 1Q16. This is 40% lower compared to the peak of $352 in 2014.

The report said this could help explain the increased cross-border travels, with nearby Johor Bahru likely appealing to tour groups which have more restricted spending plans.

"Our channel checks suggest these visitors came in tour groups and are usually budget-conscious on accommodation. Singapore hospitality REITs also largely do not cater to such tour groups as they operate in the mid- and upper-tier segments," UOB said.

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