Singapore, a hot spot for tourism in Southeast Asia, may begin to feel the heat of the currency turmoil afflicting neighboring economies as the cost for regional visitors to vacation in the island nation skyrockets.
The Indonesian rupiah, Malaysian ringgit and Indian rupee have tumbled between 4 and 14 percent against the Singapore dollar over the past two months, translating into higher holiday costs – from accommodation to food and entertainment – for inbound tourists.
“There would be a huge impact on the tourism sector and economy if the currencies in those countries continue to decline sharply,” said Song Seng Wun, economist at CIMB. Singapore has several links with regional economies as its tourism, property, wealth management and export sectors are tied to the prosperity of its neighbors.
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