In 2022, the analysts expect Singapore’s monthly retail sales to surpass its pre-Covid-19 levels as locals outspend, more than offsetting the sales lost from tourists.
While tourist arrivals and spending were a bright spot for the retail sector in the 2H2022, China’s reopening could be the trump card for the sector in 2023, giving it a “much-needed boost”.
“Based on 2019 data, we note that Chinese travellers typically allocate a bigger proportion of their travel budget on shopping and food and beverage (F&B), contributing [some] 28% of tourist receipts in comparison to the 20% of inbound tourist arrivals,” write DBS Group Research analysts Geraldine Wong and Derek Tan.
