Battling Covid-19 - Stay healthy, keep calm, and carry on spending at home

THE novel coronavirus outbreak is hurting inbound tourism, disrupting supply chains in manufacturing, and potentially dampening already-weak retail spending. To mitigate its economic impact, what Singapore residents can do for the country is not just to stay healthy, but to keep calm and carry on spending.

While every case of Covid-19 is cause for concern and any death would be a tragedy, the economic damage caused by the virus should not be dismissed simply because it is more diffuse. Businesses and livelihoods lost could take months, even years, to recover. The Singapore Tourism Board estimates that international visitor arrivals might fall by 25 to 30 per cent this year, with tourism receipts declining accordingly. Sector leaders have said that preserving jobs is a priority, but low demand can still exact a cost. Some firms have put in place shorter work weeks, in a bid to contain wage costs while still retaining employees. If the outbreak drags on, smaller firms with cash flow challenges may have to fold.

While the impact on tourism areas such as international business events or inbound tour agencies may be beyond local mitigation, domestic consumption can still prop up segments such as hospitality, food and beverage, retail sales and tourist attractions - if locals are willing to get out and spend. Tourism industry leaders themselves have called on residents to take staycations, visit tourist spots and patronise eateries; Sentosa is waiving island admission fees for the March school holidays to attract local families.