TOURIST PROMOTION BOARD (AMENDMENT) BILL

Order for Second Reading read.

The Minister for Trade and Industry (Mr Lee Yock Suan): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The main objective of the Bill is to give the Singapore Tourist Promotion Board (STPB) an expanded role in the development of the tourism industry in Singapore.

The STPB will be renamed the Singapore Tourism Board to reflect its expanded role.

The Bill will also update the Tourist Promotion Board Act and make consequential amendments to several other Acts and Regulations.

Increasing competition for Singapore's tourism industry

Tourism is one of the largest and fastest growing industries in the world. In Singapore, the tourism industry is an important sector of our economy. In 1996, we attracted 7.3 million visitors who spent $11 billion in Singapore.

The industry is facing increasing competition. Growth in visitor arrivals slowed to 2.2% in 1996, compared to growth rates of 12% per annum from 1985 to 1990, and 6% per annum from 1990 to 1995.

Between 1985 and 1995, per capita visitor spending fell from $751 to $721.

The currency crisis and the haze problem affecting the region are additional difficulties to our tourism industry.

Tourism 21

However, the long-term outlook for the global tourism industry is positive. The World Tourism Organisation has estimated that tourist arrivals to the Asia-Pacific region will grow from 84 million in 1995 to 190 million in 2010. The challenge for us is to continue attracting high value tourists to Singapore and to participate in this growth industry in the region.

To address the challenges ahead, my Ministry launched the Tourism 21 plan last year. Under Tourism 21, we aim to attract more tourists to Singapore and to be an attractive location for tourism investments and businesses as well as to be a tourism hub and gateway to the region.

STPB has hitherto focused mainly on marketing itself as a tourist destination by itself. By adopting a partnership approach to jointly market neighbouring destinations as well as invest in regional tourism projects, we will be able to offer a more varied and attractive product to visitors and ride on the growth of the tourism industry in the region.

Let me now highlight the main clauses of the Bill.

Clause 5 will amend section 3 of the Act to rename the Singapore Tourist Promotion Board as the Singapore Tourism Board.

Clauses 2, 3 and 4 are consequential amendments arising from this change of name.

Clause 10 inserts a new section 13A which sets out the expanded functions of the Board.

Clause 11 re-enacts with amendments section 14 to give the Board the necessary powers to carry out its expanded role. It will be able to play a pro-active role in developing the tourism industry including granting loans to tourism enterprises, if necessary, entering into tourism-related joint ventures, whether within or outside Singapore and, with the Minister's approval, borrowing money to finance the Board's activities.

Clauses 15 and 16 will replace STPB's existing corporate symbol, the Merlion symbol, with a new corporate symbol to reflect the expanded role of the Singapore Tourism Board. However, the Merlion symbol will continue to be protected and used to promote Singapore as a tourist destination.

Other Amendments

The other clauses are intended to update the Act and make consequential amendments.

Clause 4 will replace the term "tourist enterprise" with "tourism enterprise".

Clause 6 will accord greater flexibility to the Minister in the appointment of Board members.

Clause 7 will re-designate the Director of the Board as Chief Executive, or such other designation as the Board may decide.

Clause 8 will give the Board the power to appoint and delegate power to committees.

Clause 9 will rename the Tourist Promotion Fund to Tourism Fund.

Clause 12 relates to the Board's Annual Report and annual estimates.

Clause 15 provides for penalties for misusing the Board's new symbol or the Merlion symbol.

Clauses 17 to 20 are to make consequential amendments to the Tourism Promotion (Cess Collection) Act, the Economic Development Board Act, the Industrial Relations Act and related regulations and to make transitional provisions.

Sir, I beg to move.

Question put, and agreed to.

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

The House immediately resolved itself into a Committee on the Bill. - [Mr Lee Yock Suan].

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