More Chinese tourists expected in S'pore after Japan trip cancellations: DBS

Japan could miss out on approximately US$ 1.2 billion (S$1.6 billion) from now till the end of 2025 as Chinese travellers cancel their trips en masse amid a diplomatic spat, according to Bloomberg.

This comes after Chinese citizens were advised to avoid travel to Japan following comments made by Japanese Prime Minister Sanae Takaichi.

Around 491,000 flight tickets have been cancelled as a result, or around 30 per cent of China-to-Japan trips.

Singapore as a substitute

According to DBS, this could create "near-term tailwinds" for Singapore tourism.

In a Nov. 24 market insight article, DBS elaborated that a "meaningful uplift" for Singapore tourism operational metrics has been observed.

New bookings to Singapore have risen by 15 per cent in recent days, as Chinese travellers shift their travel plans towards other destinations outside of Japan.

China is Singapore's largest visitor source, accounting for 20 per cent of arrivals, DBS said.

The DBS article also mentioned key beneficiaries that could benefit from this trend.

These include:

• Mid-tier and upscale hotels like Orchard Rendezvous and Oasia Downtown
• Malls like ION Orchard, Plaza Singapura, Bugis+ and Raffles City, which typically attract tourist traffic
• Tourist attractions like Resorts World Sentosa, Universal Studios Singapore and Marina Bay Sands

Top image from Unsplash.