Extracted from the Annual Report 2023

BACK ON AN EVEN KEEL

I am pleased to report that we are back on an even keel, as the tourism industry has largely recovered from the COVID-19 pandemic. Though initially fraught with challenges on staffing as well as adjustments to operating conditions, the industry is seeing a strong revival of visitor numbers amid the restoration of flight frequencies and easing of border restrictions.

Looking back, 2023 was the first full year of post-pandemic operations. Month by month, quarter on quarter, we read about improving air travel volume and engagement in tourism activities. While consumer confidence remains fragile amid uncertainty in the global economy, we are cautiously optimistic that our industry is back on a sustainable uptrend.

After 3 challenging years of the pandemic, I am glad to share that we have weathered the storm and emerged relatively unscathed. Our resilience was built on a bedrock of the Group’s strong financials, the unwavering support from our teams in Singapore and China, and our customers who continue to include our experience offerings in their itineraries.

For 2023, the Singapore Tourism Board (STB) recorded international visitor numbers of 13.6 million for Singapore - a doubling of 2022 visitor arrivals, albeit only 70% of its historical peak in 2019 prior to the pandemic. However, given the increased flight frequency, coupled with 30 days of visa-free travel for visitors from China from 9 February 2024, we are more optimistic for the tourism sector in Singapore.

In China, the much-anticipated improvement in post-pandemic domestic consumption was muted, given the ongoing real estate debts crisis and structural unemployment experienced in some industries due to disruptive innovation. While government policies are favourable for the tourism industry, we have yet to witness a strong revival on the broad front.

Nonetheless, sectorial lockdowns and travel restrictions which had resulted in tourism grinding to a halt during the pandemic-hit years are unlikely to be re-introduced and we look forth to more business-friendly initiatives from policy makers.

For the year ended 31 December 2023, the Group registered net profit of S$25.68 million. Excluding exchange losses, cumulative net profit would have been S$27.39 million.

Our financial remains strong with a net cash holding of S$162.76 million as at the end of 2023. We will continue to deploy this cash for our regular asset enhancements, and will remain open to any collaborations or M&A opportunities.

Taking cognizance of the tourism recovery in both Singapore and China in 2023, as well as our healthy financial position, we propose a first and final dividend of 1.50 cent per share, and a special dividend of 0.5 cent per share, representing a payout ratio of 64%. This is in appreciation of the continued support from our shareholders and various stakeholders.

CAUTIOUS OPTIMISM FOR THE YEAR AHEAD

We expect 2024 to build on the momentum seen in 2023. However, headwinds faced by the global economy along with geopolitical tensions, inflationary pressures and cost of living concerns will dampen growth. As we ramp up our operations with the general recovery, we will continue to adapt and innovate, with an eye on ESG factors, to ensure our long-term sustainability.

A WORD OF THANKS

I would like to express my sincere gratitude to our colleagues, directors and business partners for their unwavering support in the past year.

• Our staff and managers at our subsidiaries for their patience and dedication to their jobs, often going above and beyond their assigned roles to safeguard the viability of our operations, and to ensure a positive and pleasant experience for our visitors.


• Our various other stakeholders, business associates and professional consultants who have helped us.


• My fellow directors on the Board and all directors of our group companies for their valuable counsel and contributions. I would also like to place on record my sincere thanks to the Board members who will be stepping down at the coming Annual General Meeting, as part of the Board renewal programme.


• Our shareholders for their trust and understanding, and their continued support.

With the global economy still fraught with multiple challenges, we expect an uphill climb ahead, but together with our subsidiary teams, we will press on while staying firmly focused on our business fundamentals and product offerings, sustainable development as well as generating new value through quality investments.

Wu Hsioh Kwang
Executive Chairman