Coronavirus impact on aviation sector “worse than SARS” – Singapore Transport Minister

SINGAPORE. The coronavirus outbreak’s impact on the aviation sector will be worse than that of SARS in 2003, Transport Minister Khaw Boon Wan said yesterday during a visit to Changi Airport.

The Minister’s comments were featured in a lead article by Singapore’s leading media The Straits Times.

“The Chinese… account for one-third of retail sales in Changi, and the one-third has evaporated” – Transport Minister Khaw Boon Wan

Khaw said that the Chinese travel sector is much bigger than in 2003 and represents a much larger source of tourism for Singapore and the region.

The Straits Times article led with a photo caption noting that there was barely a queue for taxis at Changi Airport Terminal 3 yesterday [5 February].
In terms of retail spending, the Chinese make up one-third of Changi Airport’s sales, he revealed. The Government is finalising a budget that will help support the aviation and tourism sectors, and relief measures will announced later this month, he pledged.

Khaw said he held particular concerns for Changi Airport’s retail operations, which employ 7,000 to 8,000 staff. Many families would be affected if companies start retrenching, he told local media.

The news comes just four months before Lotte Duty Free takes over the key liquor & tobacco concession at Changi from 40-year incumbent DFS Group on 9 June.

DFS Group’s acclaimed Changi Airport Terminal 3 duplex store. The retailer’s decision not to bid in the recent tender brought down the curtain on a near 40-year incumbency and resulted in the impending debut of Lotte Duty Free. The Korean retailer will hope that the coronavirus crisis has passed by the time the new contract starts in June.

The Straits Times said that Chinese travellers accounted for just 5% of Changi’s passenger numbers in 2003.

“Now, they account for 11%, so it is double in terms of percentage and even more by absolute numbers,” Khaw said. “But the purchasing power has increased even more… they account for one-third of retail sales in Changi, and the one-third has evaporated.”

He said local airlines – Singapore Airlines, Scoot and SilkAir – are also suffering. The traffic between China and Singapore has come down significantly because flights have shrunk 70-80%, and traffic volume has slumped 60-70%, he noted.

“The loading of our own carriers to China has come down a lot. Some flights are below 20 per cent to 30 per cent,” he said. Khaw said that the Transport Ministry is working “very feverishly” with the Ministry of Finance to develop a package to help those in the aviation sector, The Straits Times reported.

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