Singapore is relaxing restrictions on new hotels, backpacker hostels and serviced apartments in two historic districts as it looks to expand visitor accommodation options while keeping heritage neighborhoods vibrant.
National Development Minister Chee Hong Tat announced the changes for the Boat Quay and Beach Road areas recently during the opening ceremony of i Light Singapore 2026.
Under the new approach, new accommodation projects will be allowed in the Upper Circular Road area near Boat Quay, giving visitors more choices close to the Singapore River, known for its historic shophouses, restaurants and mixed-use developments.
Rules will also be eased at Beach Road, allowing businesses and developers greater flexibility to introduce new hospitality concepts.
Previously, proposals for new short-term accommodation in these areas were generally restricted to prevent an oversupply of hotels and similar properties that could change the character of the heritage precincts, according to the Urban Redevelopment Authority (URA).
The URA said the policy shift would allow businesses to diversify their offerings while providing travelers with a wider range of places to stay in culturally significant neighborhoods.
“By providing greater flexibility, we can support new ideas and enhance the attractiveness of these precincts,” Chee said.
The minister added that Singapore is also exploring regulatory “sandboxes” that would give businesses and community partners more freedom to create new events, activities and experiences tailored to different districts.
He pointed to cities such as Australia and London as examples of destinations using more flexible approaches to encourage innovation.
Singapore plans to introduce similar initiatives in selected precincts, with further details to be announced later in the year.
The government is also reviewing guidelines for night lighting to support more creative and experiential displays across the city. The changes will initially focus on areas such as Marina Bay, where building owners and industry partners will work with URA to develop more dynamic lighting experiences.
The announcement comes as Singapore continues efforts to strengthen its tourism appeal through unique experiences, cultural districts and improved visitor infrastructure. It shows also that the City State prepares to face more competition from neighboring Johor Bahru, as both cities will soon be linked by a dedicated MRT service. Johor Bahru could then become the new hotspot for travelers looking for budget and mid-market hotels.
