Singapore F1 Grand Prix to Boost Tourism: Top SGX Stocks to Watch

September 15, 2023

Singapore is revving up for the F1 Grand Prix this weekend. Despite a forecasted dip in attendance, more than 28 meetings, incentives, conventions and exhibitions (MICE) events have been scheduled during the week.

Following the excitement of the Grand Prix, Singapore is poised to host an array of top-tier events.

We have the high-flying Singapore Air Show in February 2024 and sold-out gigs from pop queen Taylor Swift in March and rock legends Coldplay in January.

Brace yourselves; the Singapore party is just getting started!

Singapore tourist boom ahead: Here’s how investors can benefit

Singapore has already reeled in a whopping 9.01 million international tourist arrivals by August of this year.

With the momentum, the Lion City is on track to achieve the Singapore Tourism Board’s forecast of 12-14 million visitors this year.

Over the next 6-9 months, the thriving tourism outlook signifies a boon for these sectors.

1. Gaming

Genting Singapore Limited’s (SGX: G13) recovery is noteworthy, especially with its Q2 2023’s adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) growth of 36%, outdoing its peer, Marina Bay Sands’ (MBS) 10% growth.

The latter half of 2023 is forecasted to bring even stronger revenue, especially from non-gaming segments catering to key markets like China and India.

2. Hospitality

Hotel’s revenue per available room (RevPARs) have increased, with Singapore’s Q2 and H1 2023 RevPAR increasing by 33% year-on-year (yoy) and 55% yoy, respectively.

Among the beneficiaries, CapitaLand Ascott Trust (SGX: HMN) stands out with its diverse and geographically wide-reaching portfolio, ready to capitalise on the burgeoning hospitality sector.

3. Transport

Both ComfortDelgro Corporation Ltd (SGX: C52) and Grab Holdings Limited (NASDAQ: GRAB) are anticipated to gain, driven by the heightened demand for public transport and point-to-point services since the post-Covid reopening.

An added factor is the gradual driver supply recovery, resulting in increased fares and better earnings for platforms.

The competitive landscape looks promising, with giants like Grab working towards achieving EBITDA breakeven by the end of FY2023.

F1 Grand Prix to ignite interest in tourism sector

In conclusion, the Singapore F1 Grand Prix is set to ignite a fiery boost for Singapore’s tourism sector.

Tourist figures are impressive, as the city has already hosted 9.01 million international guests and aims to hit 14 million by year’s end.

Key sectors, namely gaming, hospitality, and transport, are poised for significant gains.

Stocks like Genting Singapore, CapitaLand Ascott Trust, ComfortDelgro, and Grab look especially promising for investors.

It is clear: as Singapore races forward, it is bringing many opportunities with it.

Investors, get ready to capitalise!

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.

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