Debated in Parliament on 11 Jan 2022.
Mr Saktiandi Supaat asked the Minister for Trade and Industry (a) following the suspension of Vaccinated Travel Lane flights and bus tickets, what is the outlook for the aviation, hospitality and tourism industry; (b) with COVID-19 Omicron cases requiring quarantine, whether the Ministry foresees this as a reliable revenue source for hotels; and (c) whether the Ministry will step up measures to help companies pivot to other industries, diversify their service offerings or over time reduce reliance on sectors that involve travel.
On 27 December 2021, MOH announced that Omicron cases will be treated like other variants of COVID-19, and that it would allow positive Omicron cases to recover at home or at community care facilities. Therefore, Stay-Home Notice (SHN) or isolation requirements on their own will not be a reliable revenue source for hotels.
While Omicron may have slowed the pace of recovery in the near term, the longer-term prospects for the aviation and tourism sectors remain good. The strong demand for Vaccinated Travel Lane (VTL) air tickets suggests that people want to travel for business or leisure.
The Government has provided significant support to help these sectors preserve their core capabilities and safeguard jobs. Besides broad-based measures such as the Jobs Support Scheme and Rental Support Scheme, we have provided targeted support for both the aviation and tourism sectors. This includes the OneAviation Support Package and the SingapoRediscovers Vouchers (SRV) scheme.
We will continue to help companies in these sectors transform and upgrade themselves so they can better capture opportunities when travel volumes resume. Companies in both sectors have received training support under the Enhanced Training Support Package, which provided enhanced Absentee Payroll funding rate and course fee subsidies to those who send their employees for selected training programmes. Companies are also receiving support to pursue transformation efforts to prepare for the recovery. Examples include the Civil Aviation Authority of Singapore’s (CAAS) Aviation Development Fund and the Singapore Tourism Board’s (STB) Business Improvement Fund.
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