They say that without tourists, our malls will me empty and businesses need to sell their items more expensive in order to recover the cost of rental.
When tourists come, they pay more GST and this helps our government to collect more GST and in return giving us more bonus.
Like that Sai keyi mah?
Rubbish Coolie genes logic. It is in fact the other way round.
When more tourist tio chop carrot willing to pay high prices, prices will continue to rise. As prices rise, producers manufacture more to gain more profits, leading to higher prices.
An ideal scenario is when tourists come to a country and only visited tourist areas with shops only focusing on chopping their carrots without affecting local costs of living through a buffer zone. But once they infiltrate into local malls and eateries, is hong kanz already.
As long as this fake external demand exists, it tends to overide local demand, hence will continue to cause inflation til an equilibrium is reached when it crosses the supply curve which by then will be too late, as it is a false signal due to external demand. A perfect example will be Newton Circus where prices are jacked up like no tomorrow as most customers are tourists so even if locals go there also tio chop carrot.
This is also exactly what happens at JB when S'porean go there making bird sounds 'Chip chip (cheap cheap)' which cause all the prices there to rise like no tomorrow.
Which is why Johoreans have been blaming us for so long for causing their inflation. But they can afford such inflation as many of them came here to work then bring back money at 3.5X so not much effect and also help to boost their economy.
Whereas for S'poreans, once foreigners jack up our prices, there is no where else to go, hong kanz already.
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