TOURISM SECTOR PERFORMANCE

TOURISM SECTOR PERFORMANCE

4.

Assoc. Prof. Ong Soh Khim asked the Minister for Trade and Industry in respect of tourists visiting Singapore (a) what are the root causes for the decline of tourism revenue; (b) what are the average spending of tourists from the various Asian countries; (c) what is the typical tour itinerary of a Chinese tourist; (d) what are the typical patterns and trends in the tour itineraries of the tourists from the various Asian countries; (e) what are the main cost factors making hotel stay in Singapore expensive such that tourists are whisked off to Johor Bahru after a day's travel here.

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Mr Lim Hng Kiang: Tourism sector performance

Between 1993 and 2002, tourism receipts fell by 17 percent from $11.3 billion to $9.4 billion. There are several reasons for the decline.

Under-investment in tourism products

Firstly, there has been a lack of investments in quality tourism products. Apart from some sizeable investments in cultural attractions such as the Esplanade and museums*, there were no major investments in tourism attractions over the past decade. On the other hand, regional destinations have improved their tourism product offerings.

Change in visitor profile

Secondly, there has been a shift in our visitor profile with the number of visitors from China, India and ASEAN overtaking traditional source markets such as Japan, Europe and the US. These visitors have different preferences and spending patterns. Our tourism industry has to adjust its products and services to better serve these customers.

External factors

Thirdly, external events such as the Asian financial crisis, September 11th, SARS and bird flu have taken their toll on the tourism.

Growth opportunities

However, looking ahead, there are good reasons to be optimistic about the future of the tourism industry. As part of the Tourism 2015 vision, the Singapore Tourism Board (STB) will step up its efforts in attracting and developing world-class tourism products, organising a wide variety of events, and enhancing tourism marketing and promotion.

It will pay special attention to the fast growing Asian market. One key target market is China. Last year, we welcomed 880,000 Chinese visitors to Singapore and they generated $612 million in tourism receipts, up 33 percent increase compared to 2002. They have become our second largest visitor market after Indonesia. The STB will intensify its efforts to attract more Chinese visitors.

Quality tour products

Firstly, we must enhance the Singapore experience for visitors. Many first-time Chinese visitors to Asia come on a Singapore-Malaysia-Thailand (新 马 泰)group tour, which includes one to two days' stay in Singapore as well as visits to our local attractions and ethnic precincts. However, such tours only provide a fleeting glimpse of what

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Singapore has to offer. To give Chinese visitors a more enriching experience in Singapore, STB is actively working with Chinese tour operators to develop quality tour packages. STB is also promoting Singapore through a Chinese drama that was filmed here featuring our local attractions.

Better customer segmentation

Secondly, we will focus our developmental and marketing efforts on targeted segments of visitors such as families, business travellers and students. We will capitalise on our multi-ethnic and cosmopolitan appeal, our quality education services and our strength as a business hub to position Singapore as a premier destination of choice for these visitors. These efforts are already beginning to bear fruit. For example, in January this year, some 1,200 top performing executives from pharmaceutical firm AstraZeneca in China were in Singapore for a week-long incentive trip.

Improved accessibility

Thirdly, we must continue to make Singapore even more visitor-friendly. From January this year, China Unionpay RMB cardholders can withdraw cash at selected Automated Teller Machines (ATM) in Singapore and use our Point of Sale systems at shops and restaurants. We will also provide more multi-lingual signages to make it easier for Chinese visitors to get around in Singapore.

Hotel room rates

Although our hotel room rates are higher than Johor, they are among the lowest in Asia, as indicated by a recent study by Horwath, a hospitality consultancy company**. In any case, we cannot compete based on price alone, but must provide a quality experience so that visitors feel rewarded for their time and money spent here. There are some encouraging signs - the average length of stay of all tourists in Singapore has risen from 3.08 days in 2002 to 3.2 days in 2004. STB will work to further increase visitors' length of stay in Singapore.

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• Asian Civilisation Museum, Singapore Art Museum and Singapore History Museum.

**The Horwath Asia Pacific Study which shows the comparative average hotel room rates for Asian cities was reported in a Straits Times article dated 4th March 2005.

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