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'We are ramping up sites for sale for hotel rooms fairly sharply over the next few years,' he said. The move is in line with the government's attempt to attract more tourists to Singapore by 2015.

Mr Mah did however warn that there was a fine balance between over and undersupply.

'When we put more land onto the reserve list, it's up to the developers to read the market and decide whether or not they want to trigger it, so we don't run the risk of oversupply.

'But we also don't want this to lead to a shortage of hotel rooms,' he said.

Currently, more than half of the new sites which have been placed under the government's Land Sales Programme for the second half of this year have been set aside for hotel projects.