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Trending Sector
International Travel
Boost for travel and hospitality stocks with more VTLs

  • According to a Bloomberg interview yesterday, Minister Gan Kim Yong mentioned that Singapore is in discussions with several countries, including the US and some in Europe, to launch new vaccinated travel lanes (VTLs) possibly by end 2021
  • News is a positive boost for travel/aviation stocks because:
    • US and EU accounted for c.15-20% of Singapore’s visitor arrivals during pre-COVID times
    • Changi Airport passenger movement YTD (as of August) has been weak at 1.37mil or a mere 2% of pre-COVID level in 2019
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  • Other pro travel/aviation news developments include:
    • Singapore had added more countries to its Category 2 and 3 Safe Travel Lanes list, including the US, several countries in the EU, and Japan, to name a few
    • Development of Merck’s oral COVID-19 pill, which could reduce the chance of hospitalization and mortality, and potentially change the way COVID-19 can be managed
  • Beneficiaries are SATSSIA, and hospitality REITs (CDLHTFEHT and ART)