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Another 6 Vaccinated Travel Lanes announced, bringing total to 27

  • Singapore announced another 6 vaccinated lanes to kick start around mid of Dec
  • Thailand a key inbound market amongst the 6 announced, with historical c.2.8% inbound market share
  • VTL partner countries now make up c.57% of historical inbound market exposure
  • Positive on hotel sector
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What’s new?

  • Singapore announced another 6 vaccinated lanes this after, namely: Thailand, Cambodia, Fiji, Maldives, Sri Lanka and Turkey.
  • The respectively VTL will kick start in 14-Dec for Thailand and 16-Dec for the other 5 countries. 
  • This brings total VTL lanes from 21 to 27 and 9 VTLs to kick start next month (including Qatar, Saudi Arabia and UAE starting from 5-Dec).
  • VTL daily pass cap will increase from 10k to 15k. 
  • As of yesterday, CAAS (Civil Aviation Authority of Singapore) has issued a total of 79,335 vaccinated travel passes for entry to Singapore between 8’Sep and 27’Jan next year, of which c.37k have already touched down on Singapore soil. 
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Our thoughts?
Thailand a key market added to the VTL list. Of the 6 new VTL lanes established, Thailand is a key market for Singapore inbound market share back in 2019 at a c.2.8% share. Amongst our top 5 key markets, we note that VTL arrangements have now been established with 4 out of our 5 top markets, or Indonesia (16%), India (7%), Malaysia (6%) and Australia (6%), with China remaining the elephant in the room and our biggest inbound market at 19%. VTL arrangement with partner countries will now make up c.57% of historical inbound market share. Sector is still in early days of welcoming tourists back and border reopening developments have prominently “freed the chains” for the travel and tourism related sectors. Awaiting pent-up demand to translate into performance!

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VTLs can bring monthly visitor ship up 4-5 folds. Based on the latest monthly inbound figures made available by STB, the establishment of VTL has shown the ability to bring monthly visitor ship from a country up 4-5 folds as opposed to the trailing months. Monthly inbound visitor ship from Germany, one of our earliest established VTL lane which started since 8’Sep rose 5.3x since VTL has been established, and has shown that this exponential increase paves the way for even further growth. 

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Holiday plans taking shape but new found variants may hesitate. While VTL has proven to boost locals demand for holiday abroad this Christmas, alongside cheaper flight and lodging options, new found variants and a resurgence in partner countries has caused hesitation for some to proceed with their travel plans. Latest developments announced of a new found variant originating from South Africa could implicate vaccine efficacy and transmissibility, if not isolated and contained quickly enough. Various nations have reacted fast to ban inbound flights from South Africa. WHO is still in early investigations on this new variant, and development will continue to be monitored closely by the various nations, with the possibility of tightening of measures in countries who have detected cases relating to the new variant.

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