On Wednesday, July 22, Keith Tan, Chief Executive, Singapore Tourism Board announced that Singapore’s tourism sector is facing an existential crisis while outlining plans to boost local demand after the COVID-19 pandemic and travel restrictions shattered tourist arrivals and the tourism sector as a whole.
It has been informed that in 2019 Singapore welcomed a record 19.1 million travellers which is more than three times its total population. However, due to the pandemic the island country closed its borders and advised its citizens to avoid going overseas. Considering the global situation at present, the condition is unlikely to change anytime soon.
Mr. Tan informed that tourism numbers fell to 99.9% in April and May and might remain the same way for the rest of the year. The Singapore tourism board unveiled S$45 million ($32.5 million) marketing and promotion campaign to drive local demand for lifestyle and tourism businesses and is presently that locals, who spent S$34 billion on overseas travel in 2018, will spend on staycations at hotels and visit tourist attractions inside the country. However, the tourism board is not expecting residents who are already worried about salaries and jobs, to be able to compensate the S$27.1 billion void left by international visitors.
Mr Tan also informed that more job losses will happen in the coming months due to the severe impact of the coronavirus outbreak on international travel. The government has already granted in stimulus of nearly S$100 billion to cushion the impact of Singapore’s worst recession. Chan Chun Sing, Minister of Trade and Industry, Singapore added that it is not sustainable for the government to keep supporting a business model that may not longer be available or not show signs of return within the next one, two years.
He urged tourism businesses to seek new markets and niche offerings. He informed that Singapore has agreed to resume essential business travel with China and Malaysia and is in talks with South Korea, Australia, New Zealand and some European nations for similar agreements though demand for mass market tourism is unlikely to pick up in the near term.
