TOURIST PROMOTION BOARD BILL

Order for Second Reading read.

4.47 p.m.

The Minister for Finance (Dr Goh Keng Swee): Sir, I beg to move, "That the Bill be now read a Second time."

I have His Excellency's recommendation that the Bill be proceeded with.

The Government is conscious of the importance of the tourist industry as a source of income and employment. Everybody knows the great potential of tourism in Singapore by virtue of its international name, and its strategic location on international air and sea routes. This potential needs to be exploited and this is best carried out by the joint efforts of both private business and Government. With this in view, the Government propose to establish a Tourist Promotion Board on which both business and Government will be represented.

The main functions of the Board will be to publicise Singapore and its attractions in the principal tourist markets, to co-ordinate the activities of tourist enterprises such as hotels, airlines, shipping lines, travel agencies, tour operators, tourist shops, to regulate standards to be maintained by tourist enterprises so that they compare favourably with standards elsewhere, and generally to improve facilities for visitors to Singapore. We must seek not only to attract visitors to Singapore, but we must also see that they go away satisfied so that when the word gets around more visitors will come to Singapore.

As regards the composition of the Board, Members will note that five of these will represent business interests as against four representing official interests. I think it is proper that those in business should be given adequate representation in a Board of this nature.

The activities of the Board will be financed by funds from the Tourist Promotion Fund (clause 11) to be established under this Ordinance. Both business and the Government have a stake in the tourist industry and accordingly contributions to the Fund will be from both business and the Government. Initially, the Tourist Promotion Fund will be financed from a small cess of 3 per cent on every room or suite occupied each day in every tourist hotel as well as from a subvention from the Government. Members will note that half a million dollars have been provided in the Ordinary Estimates under Subhead 58 of Head 24. Hotels, travel agencies, tour operators and tourist shops benefit from tourism. It is only right that they should be called upon to contribute towards the costs of the activities of the Board.

This Bill only sets out the framework, but the success of the Board will have to depend on how intelligently the Board frames its strategy and how effectively specific measures are carried out. The current boom in the construction of first-class hotels shows that fhere should be a bright future for tourist promotion in Singapore.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole Assembly.

Assembly immediately resolved itself into a Committee on the Bill. -[Dr Goh Keng Swee].

Bill considered in Committee; reported without amendment; read a Third time and passed.