Most of the nine hotels The New Paper spoke to are seeing an increase, compared with last June, though they declined to give exact figures.
Peninsula.Excelsior Hotel is seeing 2 1/2 times more Singaporeans booking rooms there, compared with June last year.
Its MarComm director, Ms Corina Teo, credits this mainly to the hotel's promotional packages.
'After the outbreak of H1N1 flu, families, especially those with young children, are not prepared to travel overseas. They want to avoid the risk,' she said.
'Hence, they book a weekend stay to enjoy the facilities of the hotel.'
These include swimming pools, a gym, jacuzzi and sauna.
At the Royal Plaza on Scotts, the proportion of local guests to foreign guests, though small, has more than doubled.
Local guests currently make up about nine per cent of the hotel's bookings. In June last year, local guests made up only about four per cent.
At the Rendezvous Hotel Singapore, the number of locals booking rooms this month has gone up by 50 per cent over June last year.
Stretching the dollar
Its general manager, Mr Kellvin Ong, said this is because more locals are keen to stretch their dollar, and are taking advantage of the promotional packages hotels are offering during the holidays.
For example, the Rendezvous Hotel's weekend package allows guests to stay in a room for $100++ per night.
There are also more Singaporean guests at the Millennium & Copthorne Hotels - Orchard Hotel, Grand Copthorne Waterfront Hotel, M Hotel, Copthorne King's Hotel and Copthorne Orchid Hotel.
Mrs Selinna Chua, 41, and her family spent the first weekend of this month at the M Hotel.
The Chuas were originally supposed to go to Bintan, but cancelled their trip just two days before they left over worries that the children would get infected with the H1N1 flu.
'If my children were infected, I would have to spend my entire holiday in the resort room, quarantined, and that would not be fun at all,' said Mrs Chua, who works for a digital technology company.
So, together with her husband, Mr K C Chua, 37, and sons Elijah, 4, and Jude, 21/2, the family checked into the hotel on Anson Road.
Their weekend stay cost them $500 altogether, including food and activities.
They took advantage of the hotel's weekend promotion, which let them pay to stay on Friday and get the weekend for free.
Mrs Chua doesn't think staying in Singapore is necessarily less fun than going overseas because 'the children spend most of their time in the hotel anyway'.
As flu cases rise, travel agents are also recording declining sales of trips abroad.
Said Ms Alicia Seah, senior vice president of marketing and public relations for Dynasty Travel: 'We are experiencing cancellations to the Americas and Europe of about 60 per cent and to Japan of about 20 per cent.
'The majority of the cancellations come from families who are scared that their children will get the flu.'
Fear of the flu
Of the 10 travel agencies The New Paper spoke to, seven said business was slowing down.
Said an Asia Euro Holidays Singapore spokesperson: 'At this time last year, we had about five groups departing to Japan, but this time round, we have only two.
'Business has slowed down by almost 30 per cent because of the flu.'
Most of the travel agencies also said that the fall in travel demand was probably partly because of the poor economic climate.
Mr William Loh, operations manager for Farmosa Holiday Tours, said: 'With the economic downturn, there was a change in travel patterns, with more short-haul travel bookings.'
Without promotions, everyday prices of staying at one five-star hotel in Johor Baru are almost the same as what some budget hotels here charge.
When The New Paper did a check on hotel rates, a night for a family room at the Hotel 81 Tristar here was between $169 and $179, depending on the day of the week.
A two-bedroom suite at the five-star Pulai Springs Resort in JB was RM420 ($173).
When asked which he would choose, Mr Ong Po Qin, 26, a lawyer, said he would choose JB to 'experience a change of surroundings'.
He added: 'I would prefer to stay somewhere better for about the same amount of money. Besides, I think JB is quite safe for now.'
Others like Mrs H Rasul, who frequently crosses the Causeway, said the cheaper food there is an attraction.
'It can be RM2 (80 cents) for nasi lemak over there and $2.50 here if you include chicken.'
But some Singaporeans think otherwise.
Madam L S Ling, 71, who was a victim of a JB snatch theft in March, said: 'Many people go to Johor Baru because the food is cheap and good.
'But for me, it's not worth going unless it is absolutely necessary. I don't go any more unless it can't be helped, because it's not worth the risk.
'Also, for families, travelling between the two places by public transport is very inconvenient, so I don't think it's worthwhile.'
Additional reporting by Pearly Tan, Han Su-Ying and Joanna Hor, newsroom interns