SMS S Iswaran's reply to Parliament Questions on hourly-rate hotels

Question No 46 of Notice Paper No 113 of 2009

Name and Constituency of Member of Parliament
Mr. Christopher de Souza, Member for Holland-Bukit Timah GRC.

Question
To ask the Minister for Trade and Industry (a) whether the Ministry will consider requiring hotels to obtain a special license before they can lease rooms out on an hourly basis; (b) what is the number of hourly-rate hotels beyond the borders of Geylang; and (c) what measures will the Ministry implement to ensure that hourly-rate hotels do not continue to proliferate in areas outside of Geylang, especially in residential areas.

Answer
Major cities around the world, such as Hong Kong, London, New York and Sydney do not regulate how hotels price their rooms. In Singapore, we have also adopted a pro-enterprise approach by allowing hotels the flexibility to set their operating model, including their room pricing. The Hotels Licensing Board (HLB) therefore does not require hotels to obtain a special license before they can lease rooms out on an hourly basis.

Consequently, the HLB does not track the exact breakdown of hotels by pricing models. However, HLB believes that close to half of the approximately 250 hotels in Singapore offer transit rates, ranging from hourly blocks to intra-day blocks of 3 or 6 hours, and some are outside Geylang.

In general, there are hotels located in business districts or in the vicinity of airports that charge transit rates to meet the needs of their guests, particularly business visitors. Moreover, the HLB works closely with the enforcement agencies to closely monitor activities in the hospitality industry. Where there is evidence of illegal activities, the HLB can revoke the operating license of offending hotels.

In consultation with the Police, the HLB is also in the process of introducing additional upfront process requirements when hotels apply for their operating licenses. Specifically, hotels will be required to indicate in their applications if they intend to offer transit rates, and explain their reasons for doing so. To ensure the safety of guests and to curb possible illegal activities, such hotels will have to propose 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 and respond to concerns of residents.

I would like to assure Members that the HLB will continue to work with all relevant bodies to mitigate social disamenities that might arise from hotel operations.