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Singapore’s Tourism Sector Sees Rapid Rebound with Long-Term Growth Prospects

Balancing Recovery and Sustainability in the Aviation Industry

DAVOS, Switzerland: Singapore’s tourism industry is experiencing a faster-than-anticipated recovery, driven by strong consumer demand for travel, according to Transport Minister S Iswaran. Speaking at the World Economic Forum in Davos on Monday (May 23), Mr Iswaran highlighted that passenger volumes at Changi Airport have rebounded to nearly 50% of pre-pandemic levels, surpassing earlier projections.

The swift recovery necessitates adjustments to resource planning and operational strategies. “We need to recalibrate expectations due to this stronger growth momentum,” said Mr Iswaran during a panel on revitalising travel and tourism. He stressed that scaling up operations isn’t as simple as flipping a switch. “Increasing capacity by 50% requires recruiting and training personnel and optimising processes,” he added, noting the global strain on airport operations.

Addressing Challenges Through Technology and Sustainability

Mr Iswaran underscored the importance of leveraging digital technologies to create seamless connectivity in travel. He emphasised collaboration with global health authorities, including the World Health Organization, to standardise vaccination definitions and implement mutual recognition systems using digital tools.

Singapore is also incorporating lessons learned from the pandemic into its future plans. For instance, Changi Airport’s Terminal 5 project, set to resume in two to three years, will adopt modular designs to enable flexible operational modes. Sustainability will play a central role in the terminal’s development.

“It’s about action not just for immediate recovery but also for long-term rejuvenation,” said Mr Iswaran.

Changi Airport’s Expanding Capacity

In March, monthly passenger traffic at Changi Airport exceeded 1 million for the first time in two years. The Changi Airport Group (CAG) announced last week that over 6,600 jobs are available to support the aviation sector’s recovery.

Terminal 2, closed since May 2020 for upgrades, is set to reopen in phases starting May 29 to handle increasing passenger traffic. Once completed in 2024, the terminal’s capacity will grow by 5 million, accommodating up to 28 million passengers annually.

High-Level Engagements at Davos

Senior Singaporean officials, including Senior Minister Tharman Shanmugaratnam and Communications and Information Minister Josephine Teo, joined Mr Iswaran for a four-day visit to Davos. Their agenda includes meetings with global business and government leaders to discuss economic and transport strategies.

The delegation also includes representatives from the Prime Minister’s Office, the Ministry of Transport, and other key agencies, focusing on areas like cybersecurity and economic development.

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