Commentary: Building Changi Airport Terminal 5 now gives Singapore first-mover advantage

China, which contributes to the bulk of tourism in the region, still adheres to a zero-COVID policy and has restricted the inflow and outflow of its own citizens. In contrast, in the Philippines, passenger seat booking increased to 20 per cent of pre-pandemic 2019 levels in January, then to 40 per cent in June.

Pre-COVID, Chinese nationals comprised almost a third of all tourists in Southeast Asia. While the impact of China’s zero-COVID approach has stifled tourism growth in the region, other countries like Singapore can still leverage the industry’s post-pandemic recovery.

INBOUND TOURISM PICKING UP PACE IN SINGAPORE

The resumption of construction work at T5 this May after a pause of two years is timely. Singapore has seen the highest increase of inbound flights among countries in Southeast Asia, and so will have a first-mover advantage by expanding Changi Airport now.

Since removing pre-travel testing requirements in April, tour bookings here have risen. A local tour operator reported that spending on customised tours has surged from S$2,000 per person to between S$4,000 and S$6,000. This can be attributed to tourists staying longer in the country, from three to four days to as long as 10 days.

While T5 is a long way off into the future, the current uptick in inbound tourism reflects Singapore’s strategic location. It offers connectivity to various destinations in Southeast Asia and beyond in Europe, America and Africa.

Having been proposed almost a decade ago in the 2013 National Day Rally, T5 is part of the country’s long-term strategy to solidify its status as a global aviation hub.

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