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ECONOMISTS believe the costs to Singapore from the ash attack will not add up to much despite the obvious disruptions.
While exports of electronics and drugs bound for Europe were left in limbo, the short duration of the crisis is unlikely to have significantly hurt the economy.
'In general, the impact is going to be very small. It is tempting to exaggerate the effects of these kinds of events,' said HSBC economist Robert Prior-Wandesforde.
'But assuming it's over or very nearly over, a lot of the trade that has been delayed will catch up. We will probably lose some tourists that had planned to come, but definitely not all tourists.'
While tourist arrivals were temporarily halted, many visitors were also stranded here, keeping hotel occupancy rates up and spending at restaurants and shops, so it works both ways, said Citigroup economist Kit Wei Zheng.
A check with a Hotel 81 branch showed that it doubled its rates from $79 to $159 for a superior room three days ago after an influx of Europe-bound passengers, and was still fully booked.
Read the full story in Friday's edition of The Straits Times.
Additional reporting by Dickson Li and Lee Yen Nee
While exports of electronics and drugs bound for Europe were left in limbo, the short duration of the crisis is unlikely to have significantly hurt the economy.
'In general, the impact is going to be very small. It is tempting to exaggerate the effects of these kinds of events,' said HSBC economist Robert Prior-Wandesforde.
'But assuming it's over or very nearly over, a lot of the trade that has been delayed will catch up. We will probably lose some tourists that had planned to come, but definitely not all tourists.'
While tourist arrivals were temporarily halted, many visitors were also stranded here, keeping hotel occupancy rates up and spending at restaurants and shops, so it works both ways, said Citigroup economist Kit Wei Zheng.
A check with a Hotel 81 branch showed that it doubled its rates from $79 to $159 for a superior room three days ago after an influx of Europe-bound passengers, and was still fully booked.
Read the full story in Friday's edition of The Straits Times.
Additional reporting by Dickson Li and Lee Yen Nee
