Local firms are increasing hiring efforts in anticipation of a tourist influx from mainland China.
SINGAPORE: The recent announcement of China relaxing its stringent travel restrictions has ignited a sense of optimism among Singapore’s travel and tour agencies, which have been significantly impacted by the COVID-19 pandemic.
On December 26, China’s National Health Commission (NHC) declared a downgrade in its management of COVID-19, easing border controls that have been in place since 2020. Following this news, global travel service provider Trip.com reported a noticeable increase in outbound flight bookings from mainland China, with Singapore emerging as one of the top five destinations.
Local agency Siam Express has observed a rise in inquiries from mainland China, predominantly from business travelers and high-end clients. “We anticipated that China would reopen around mid-next year, so this announcement came as a surprise, and we now find ourselves short on manpower,” explained Cathy Xia, the agency’s business development manager. The company, which had nearly 30 employees before the pandemic, has seen its workforce shrink to just eight.
To prepare for the expected influx of Chinese tourists, who previously constituted a significant portion of their clientele, Siam Express is ramping up its recruitment efforts. “Hiring will be challenging as we need time to train new staff and refresh the skills of experienced Mandarin-speaking tour guides, who have been out of work for almost three years,” Ms. Xia added.
Despite the NHC’s announcement that quarantine rules for overseas arrivals will be lifted on January 8, the specifics regarding outbound travel for Chinese citizens remain vague. The NHC stated that the resumption of international travel would be conducted “in an orderly manner,” but did not specify a timeline.
Chan Brothers Travel’s senior marketing communications manager Jeremiah Wong remarked, “We will wait for official announcements to gauge the actual number of arrivals in Singapore,” noting that the agency is currently in the process of updating contracts, rates, and quotations from hotels, attractions, and restaurants.
According to data from the Singapore Tourism Board (STB), China was Singapore’s largest source of international visitors in 2019, contributing approximately 3.6 million travelers, which accounted for nearly 19% of total arrivals. Chinese tourists also generated S$900 million in tourism receipts that year.
LABOUR CRUNCH
While the industry welcomes the news of China’s reopening, there are growing concerns about the current labor shortages in tourism-related sectors. CNA has reported similar workforce shortages in both the hospitality and aviation industries. In August, Transport Minister S. Iswaran noted that manpower levels in Singapore’s aviation sector remain below pre-COVID figures, despite the addition of 4,000 new recruits in the first half of this year.
He indicated that approximately one-third of aviation workers had left the industry, resulting in a significant loss of capabilities. This manpower crunch also affects the food and beverage sector, which, in turn, impacts agencies like Siam Express as they attempt to curate unique experiences for tourists, such as tea ceremonies and cocktail tours.
“Some vendors already cater primarily to local customers, making it difficult to allocate additional staff for tourists,” Ms. Xia explained.
Stanley Foo, founder and managing director of Oriental Travel & Tours, expressed his concerns about the industry’s readiness to handle the impending influx of visitors. “While we expect an increase in business, I worry that we aren’t prepared to accommodate the sudden return of Chinese tourists,” he said. “Currently, we face staffing shortages across hospitality sectors, including hotels, tour agencies, attractions, and airports, which struggle to manage even the current volume of visitors.”
