UOBKH: Hospitality REITs – Rapid Resumption Of Reopening
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Decisive shift to treat COVID-19 as endemic. Singapore has introduced the Vaccinated Travel Framework to replace the existing Vaccinated Travel Lane (VTL) scheme. Fully vaccinated travellers and children aged 12 and below with Covid-19 test two days before departure will be able to enter Singapore starting 1 Apr 22. They no longer have to take a Covid-19 antigen rapid test (ART) within 24 hours of arrival. Travellers are no longer restricted to take only designated flights to enter Singapore quarantine-free. Quota on the number of daily arrivals is abolished and there are no entry approvals needed for all vaccinated travellers. The tourism industry benefits from the decisive shift in policy to treat COVID-19 as an endemic.
The causeway is fully reopened. Those who are fully vaccinated will be able to travel freely between Singapore and Malaysia by land, including by driving, without testing or quarantine starting 1 Apr 22. The move will kick-start short trips between the two neighbouring countries.
Hospitality REITs benefits from reopening of borders. BUY FEHT (Target: S$0.76), a pure play on the hospitality sector in Singapore. BUY CDREIT (Target: S$1.45) as Singapore accounted for 48% of total revenue in 2H21.
