SMS S Iswaran's reply to Parliament Questions on Budget Hotels

Question No 384 of Notice Paper No 63 of 2010 For Oral Answer

Name and Constituency of Member of Parliament
Madam Cynthia Phua (MP for Aljunied GRC)

Question
To ask the Minister for Trade and Industry (a) what is the Ministry's rationale in allowing hotels to operate in residential estates; (b) what are the reasons for allowing hourly rates at these hotels in residential estates; and (c) whether his Ministry will consider removing the hourly rates at the two budget hotels in front of the 6 terrace houses along Sireh Place.

Answer
When it comes to the setting of rates, like many major cities around the world, such as Hong Kong, London, New York and Sydney, Singapore adopts a pro-enterprise approach, allowing hotels the flexibility to determine their own operating model as long as they meet the necessary requirements. The HLB recognizes that some hotels charge transit rates to cater to the accommodation needs of guests, such as travellers with late connecting flights, business travellers, day trippers who wish to rest and refresh before heading home etc.

While licensing applications are common to all, hotels intending to offer transit rates are required to indicate in their applications their reasons for doing so. To ensure the safety of guests and to curb possible illegal activities, such hotels are also required to put in place appropriate security and preventive measures, for example installing CCTVs in common areas or deploying security guards. For new hotels which are setting up in residential areas, the hotel will also be required to engage the community to address their concerns. The HLB, in consultation with other agencies, reviews each license application on its merits.

The two transit rate hotels at Sireh Place have gone through HLB’s licensing process and have put in place security measures, such as CCTVs and patrols. HLB works closely with enforcement agencies to monitor vice activities in the hospitality establishments and will continue to do so. Where there is evidence of hotels facilitating vice-related activities, the HLB will not hesitate to revoke the operating license of offending hotels.