SINGAPORE: Sales at Orchard Road are not yet back to pre-pandemic levels, the chairman of the Orchard Road Business Association is quoted as saying in a Nikkei Asia article on Dec 30 (Saturday).
Mr Markham Shaw said that because tourists from China are not yet back in full force, this has affected Orchard Road’s recovery. However, many tourists from India recently have been a pleasant surprise for business establishments.
Orchard Road has long been considered the “retail heart” of Singapore, with something for everyone. The 2.5-kilometer stretch is popular with tourists and locals alike, for both foodies and fashionistas.
Nikkei Asia added that for Mr Shaw, Chinese visitors are still number one among tourists, with Indonesians following. However, the economic slowdown in China is one big reason why tourists have not returned in the same volume.
Mr Shaw also called “the very strong Singapore dollar” an issue, adding, “It’s quite expensive for people to purchase here.”
“Orchard Road is very dependent on both local consumption and tourism consumption. And because tourism isn’t really back to where it was pre-pandemic, I would feel that the sales on Orchard Road are probably not quite back to what they should be, either,” he told the publication.
There were 1.1 million visitors to Singapore last November, nearly 30 per cent less than in November 2019, before Covid-19 burst onto the global scene. Notably, among the visitors, 104,000 had come from China, 58 per cent less than the figure from four years ago.
Mr Shaw is quoted as saying that while high-end spending on luxury goods has remained steady and helps establishments survive, mid-range spenders are significantly fewer. And spending will likely take an even bigger hit beginning from Jan 1, 2024, when the Goods and Services Tax jumps from eight to nine per cent. This will affect locals more than tourists, he added.
Last week, a CNA report said that some Orchard Road retailers had noted fewer crowds than usual for the year-end. This may also be due to fewer tourists and more Singaporeans having gone overseas for the holidays. Another reason could be the resurgence in Covid-19 cases that began at the end of November.
Sales representatives were quoted in CNA as saying that daily earnings have taken a hit. “It is very quiet in Orchard Road. I think many people (have gone) on a holiday or maybe people are scared of COVID-19,” one said. /TISG
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