With that, DBS likes Far East Hospitality Trust (FEHT), CapitaLand Integrated Commercial Trust (CICT) and Genting Singapore (GENS) as key beneficiaries.
In a recent note, DBS Research is expecting a meaningful uplift for Singapore’ tourism operational metrics arising from the China-Japan rift. Around 30% of the 1.44 million China-to-Japan trips planned for the rest of the year have been cancelled following Beijing’s advisory to avoid travel to Japan.
Currently, China is Singapore’s largest visitor source that accounts for about 20% of tourist arrivals. DBS believes that the substitution effects will tend to favour short-haul, high-frequency markets like Singapore which has seen new bookings to Singapore rising about 15% in recent days.
