Tourism sector set to benefit as jittery Chinese tourists ditch insecure Thai carriers

Traffic could be diverted to Singapore.

Singapore hotels are the unlikely beneficiary of the International Civil Aviation Organisation’s (ICAO) safety warning against Thailand-based carriers.

According to UOB Kay Hian, the hospitality sector will benefit if traffic is diverted to Singapore from Thailand.

Thai airlines currently have a 32% market share on flights from China to Thailand. As charter flights account for 10% of total flights from Thailand to China, Chinese arrivals could drop by 3.2% following China’s ban on charter flights from Thai carriers.

“Increased visitor arrivals in Singapore especially from China due to a traffic diversion from Thailand will further support a turnaround in the hotel sector. Our sensitivity analysis indicates that every additional 5% growth in visitor arrivals from the region would result in a 1.6ppt boost in occupancy,” stated UOB Kay Hian.

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