atans1

Tourism: Where Covid-19 really hurts us

In China, Economy, Tourism on 18/03/2020 at 6:28 am

The govt last month proposed a S$6.4bn ($4.6bn) programme to counter the outbreak’s economic impact. The package was announced a few days after S’pore slashed its growth forecast by a percentage point to -0.5% to 1.5% from 0.5 to 2%. Another package is on the way according to the millionaire ministers.

I’ve pointed out areas where the impact of China’s virus problem here is minimal:

We not reliant on China for manufactured gds

Where S’pore is not too exposed to China

But tourism is different: China is the top source of visitors to Singapore, and accounts for a fifth of arrivals. In Asean, only Thailand gets more, about a quarter of arrivals.

And tourism is important to us:

International tourism accounted for 4.1% of Singapore’s national GDP in 2017, with a direct contribution of $17.7 billion. The percentage of tourism’s contribution to Singapore’s GDP is projected to rise to 4.4% in 2028.

https://www.budgetdirect.com.sg/travel-insurance/research/singapore-tourism-statistics

Despite what the brokers are saying about hospitality stocks, avoid the sector.

  1. what about m’sia ?

  2. world wide, tourism, airlines, cruises, will not recover to previous levels, countries dependent on tourists to earn foreign exchange will hurt very badly

    Singapore’s attempt to keep life going almost normally is at least partly aimed at maintaining good image for future tourism; not sure how successful it would be

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