Singapore's visa-free agreement with China may push inbound travel closer to pre-pandemic levels

SINGAPORE: The number of Chinese travellers entering Singapore looks set to increase after the mutual 30-day visa-free travel agreement between both countries kicks in, pushing inbound travel volume closer to pre-pandemic levels.

This agreement was unveiled by both countries at the 19th Joint Council for Bilateral Cooperation (JCBC) meeting on Dec 7. Speaking at the event, Deputy Prime Minister Lawrence Wong said this would provide "greater convenience" and that Singapore hopes to even go beyond pre-pandemic levels in terms of direct flight connectivity. 

Singapore and China are working out the operational details, aiming to implement the scheme in early 2024.  

Director of business development at Hong Thai Travel Jasmine Li said bookings from inbound Chinese visitors are at an average of 60 per cent of pre-pandemic levels.  

During the peak season between July and August, the travel agency saw bookings return to 85 per cent of pre-pandemic levels. The figure dropped to about 30 per cent in November, she shared. 

The visa exemption agreement will increase the number of individual and small family group travellers, and the tour agency is expecting a 10 per cent increase in bookings, said Ms Li.  

It plans to design packages catering to small family group travellers to meet this demand. But for a return to pre-pandemic levels, more effort is needed across the tourism industry and this will take some time, she added.

According to figures from the Singapore Tourism Board, tourist arrivals in Singapore from China are climbing back up to pre-pandemic levels. In July, the number of visitors from China passed the 200,000 mark for the first time since January 2020. 

Managing director of Oriental Travel Stanley Foo told CNA that the agency has been badly affected by the drop in Chinese visitors. It saw a 50 per cent decrease in bookings from Chinese visitors, compared to before the COVID-19 pandemic. 

This group used to make up about 30 to 40 per cent of the tour agency’s bookings, but the figure now stands at less than 10 per cent, he added. 

“I don’t really see them anymore, except for business travellers. The group travellers have really reduced dramatically,” said Mr Foo. 

“Pre-pandemic, tourists from China are the top three visitors coming to Singapore. So it’s definitely affecting the tourism industry in Singapore badly, without them. We need their money.” 

In the hour after the announcement of the visa exemption agreement, online travel booking platform Trip.com saw an 80 per cent increase in the search volume for deals in Singapore, said Ms Ru Yi, the company’s general manager for Singapore. 

Searches for flight tickets and hotels also increased by 90 per cent and 50 per cent respectively, she added, noting that from January to October, 1.13 million Chinese tourists arrived in Singapore, making China the second-largest source of inbound visitors to Singapore. 

Tour agencies and industry experts pointed to several factors as to why visitor numbers have yet to completely rebound. 

Malaysia and Thailand also recently granted Chinese tourists visa-free access, and this new agreement will make Singapore more competitive on this front, said Ngee Ann Polytechnic senior lecturer in tourism Michael Chiam. 

“The rate of recovery for Chinese arrivals depends on many factors, and they include foreign currency exchange rate and the rate of economic recovery of the Chinese market. Visa-free arrangements is just one of them,” he added. 

Mr Foo also pointed to the stiff competition from Singapore’s neighbours, noting that spending a night in Singapore could be equivalent to spending three nights in Malaysia or Thailand. 

“The prices of hotels went up dramatically, and this will affect a certain group of visitors,” he added, noting that the price increase was about 20 per cent across the board. 

The frequency of flights between Singapore and China is currently at about 60 to 70 per cent of pre-COVID levels, said Ms Li. 

Singapore Airlines declined to disclose specific figures on demand for flights between Singapore and China due to “commercial sensitivities”. 

China is an important market for the SIA Group, which comprises Singapore Airlines and Scoot, said its spokesperson. 

As of December, the SIA Group serves 23 destinations in China, compared to its 25 destinations before the pandemic, they said. 

There are 150 passenger flights to and from China each week, with Singapore Airlines operating 70 and Scoot operating 80. This is an overall increase from about 132 flights in July, where the two airlines operated 49 and 83 flights respectively.

President of the Singapore Hotel Association Kenneth Li said it was "too early to speculate" on the impact of the visa exemption agreement. 

But hotels can expect to welcome more Chinese guests once the hassle of visa applications and planning lead time is removed, he continued. 

"Without a doubt, this is an important source market for all tourism players in Singapore," said Mr Li.  

Research from the Nanyang Technological University (NTU) on China’s outbound tourism in 2023 showed that the country’s travellers tended towards revenge travel, with a “resilient eagerness” to go overseas, said Associate Professor Deng Xin with the university’s business school. 

The visa exemption agreement will eliminate the hassle of visa applications, she added. “I anticipate that the numbers will eventually reach or surpass pre-pandemic levels, although it might take some time.” 

Southeast Asia is China’s top outbound destination, she added. 

“Chinese travellers rank destination safety, unique scenery and being friendly to the Chinese as the top three destination considerations. They long to travel abroad, yet also want to feel at home when travelling in terms of the language and payment choices. Singapore meets all the criteria."