“Forward-leading indicators show that Chinese travel demand recovery will be fast, wide and furious, albeit from a low recovery base. Pent-up travel demand will spillover to neighbouring Asia Pacific (APAC) countries such as South Korea, Japan and Vietnam, where China was the number one source market making up 30%-35% of the total inbound market as well as leisure-positioned destinations in the likes of Maldives,” say the analysts in an April 4 note.
Hospitality Singapore REITs (S-REITs) are “well-benched” to ride the “travelanche” of Chinese travellers when they return, say DBS Group Research analysts Geraldine Wong, Tabitha Foo and Derek Tan.
Chinese travellers are the long-awaited last piece of the travel puzzle, say the DBS analysts, as they account for 30%-35% of Asia’s inbound market share. Closer to home, hotel S-REITs have some 77% exposure to China-positioned travel markets.
