PEOPLE'S REPUBLIC OF CHINA (Market for incoming tourists)

Dr Wang Kai Yuen asked the Minister for Trade and Industry, whether the Government recognises the potential of the People's Republic of China as a significant market for incoming tourists and, if so, what steps are being taken to tap this market.

The Senior Parliamentary Secretary to the Minister for Trade and Industry (Mr Tang Guan Seng) (for the Minister for Trade and Industry): Mr Speaker, Sir, the People's Republic of China (PRC) is an important and a fast-growing source of inbound tourists for Singapore. My Minister mentioned earlier in Parliament that the PRC tourist arrivals to Singapore during the Asian financial crisis continued to grow at double digit level while our other markets shrank. In spite of the 11th September incident, PRC tourists are expected to increase in the coming years. Based on Singapore Tourism Board's (STB) statistics, from 11th to 27th September, PRC tourist arrivals registered an increase of 12.87%.

PRC is currently the sixth largest visitor-generating market for Singapore. Last year, we received more than 400,000 visitors from the PRC, an increase of 16.5% over the previous year. Due largely to China's strong internal economy, the STB targets to achieve 1 million PRC visitor arrivals to Singapore by 2005. This will place PRC as one of our largest tourism market.

We intend to tap this market to the fullest extent possible. This large flow will feed our tourism sector and provide many jobs for Singaporeans. STB is working closely with other Government agencies to make this happen. These include increasing airlinks between our two countries and more streamlined visa procedures. For Singapore travel agents handling PRC tourists, the quantum of the Banker's Guarantee has been lowered for the 96-hour Collective Gratis Visa (CGV).

In addition, STB will work closely with local industry members as well as our neighbouring countries to market our countries collectively and to develop new products for the PRC market. STB will establish more offices in China to promote Singapore. This year, it will set up a new office in Beijing.

Dr Wang Kai Yuen (Bukit Timah): Sir, I would like to ask the Senior Parliamentary Secretary whether the Government will improve on the approval process for visas applied by these visitors. Even though we have a target to achieve 1 million PRC visitors it seems to me that the approving authority for visas still vests with the Ministry of Home Affairs and they have been quite restrictive in this area.

Mr Tang Guan Seng: Mr Speaker, Sir, it is true that there is stringent control on visitors from PRC. However, recently, there has been a relaxation on the requirements. For example, the Banker's Guarantee for group visits I mentioned earlier has been reduced from $150,000 to $100,000. This is what we have been doing and we have been discussing with the Ministry of Home Affairs to work towards a streamlined visa procedure.

Dr Wang Kai Yuen: Sir, my other question is how to leverage on the very positive impression of the Chinese public of Singapore and how to prevent the tarnishing of such impression by unscrupulous merchants in Singapore whereby some of the practices seem to be unhealthy and they tend to fleece the tourists.

Mr Tang Guan Seng: STB has been encouraging a group of tour agencies who are members of the National Association of Travel Agents in Singapore to work closely with the authorised tour agents in China so that collectively they can improve on the quality of the package tours in Singapore, thereby increasing the number of tourists from PRC and also improving on the quality of service provided to them.

Mr Chng Hee Kok (East Coast): Sir, are there any plans under way to conduct visa-free travel between the two countries?

Mr Tang Guan Seng: As I said just now, the procedure for visa application has been streamlined for certain groups of visitors from the PRC. As of now, there is no plan for visa-free travel between the two countries.