Hotel growth faces 1.4% hit from labour shortage

Shortfalls in staffing could strip away significant gains from the projected 6% annual expansion rate.

Singapore’s hotel industry needs to free its employees from routine tasks through technology, as the city-state faces a labour shortage estimated to impact the sector’s expansion by -1.4%

“Automating mundane functional tasks via tech is key. This automation frees staff to focus on personalised service,” Atiom said in its 2025 APAC Service Index.

The hotel industry is expected to grow by 6.9% through 2030, thanks to travellers who want more authentic, culturally immersive experiences over mere efficiency.

“Regarding market health, international visitation is down 4.3% from pre-pandemic highs, yet revenue is projected to grow 6.9% CAGR [compound annual growth rate] through 2030. This indicates a shift to a high-value, lower-volume market,” Atiom said.

In 2024, the industry recorded a revenue of $1.419b (US$1.1b), with an average revenue per guest of $393.45 (US$305).

The report noted that high-value experiential travel demands greater personalisation and warmth from staff, requiring them to be available to engage with guests and offer guidance and local tips.

“In short, Singapore’s high-value, low-volume market, focused on authentic experiences, requires staff to be brand and cultural ambassadors. Technology is essential to automate routine tasks, mitigate the labour shortage, and empower frontline staff with data-driven insights for tailored guest engagement,” the report read.

US$1 = S$1.29

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