Singapore hospitality sector heads into hazy days

Tourists are cutting their stays.

Accoridng to OCBC, with air pollutants reaching record levels in Singapore, some tourists are likely planning to cut short their stays. While an industry source indicates that new hotel bookings are not affected just yet, analysts think that a relative weakness in bookings later is likely given that the haze could last at least several weeks.

OCBC said that odd-numbered years like 2013 will traditionally have fewer MICE events but the haze could exacerbate the situation with organizations possibly cancelling outdoor events.

"The haze will likely weigh on the performance of Singapore hotels through part of 3Q13. Anecdotally, fewer locals are venturing out of their houses for discretionary trips, and retailers are feeling the effects," OCBC said.

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