Singapore's new travel focus - Tourism Asia

Business Asia, Sept, 2002 by Tamsyn Smith

As the US economy, along with the rest of the world, continues to plod along, Asia's countries can no longer rely on exports as their only source of foreign income. As a result, tourism has become an increasingly important sector of Asia's economy. In this first part of a new Business Asia series, TAMSYN SMITH examines how Singapore is planning to lure more visitors to its shores.

Singapore is renowned for being a manufacturing Mecca--but the global downturn has led to a shake up of priorities. Hence the rise in status of Singapore's tourism industry, which currently makes up five per cent of GDP, bringing in S$10 billion ($10.5 billion) in tourism receipts annually.

Asad Shiraz, senior director of tourism marketing for the Singapore Tourism Board (STB), says the tourism sector is beginning to receive an increased economic profile.

"(Tourism) is getting more attention from the Government, and that's always good," he said.

The STB is a government body set up for the primary purpose of promoting tourism into Singapore, which involves marketing through 16 offices around the world.

Asian blend

The latest marketing drive is the "New Asia Singapore" campaign, which focuses on the country's blend of modernity and traditional Asia. This incorporates its cosmopolitan culture, fun atmosphere, clean environment, and hassle-free travel.

"We really are a convenient gateway to the rest of South-East Asia," says Shiraz.

He says that as welt as branding the country, it has been necessary to give people a reason to come. Natural phenomena was not a major draw card, so Singapore was increasingly being positioned as an "eventful" city.

"With Singapore being a small city state, we have had to invent, manufacture and improve things we can put on the tourism map," Shiraz says. "Events and the arts are something we have been banking on in the past few years."

Events push

Currently, there are around 4000 events each year, ranging from drama, sport and food exhibitions.

The focus can vary from time to time. For example, this year the emphasis was on the arts.

Singapore is scheduled to open a new performing arts centre soon, which Shiraz says will rival the Sydney Opera House.

"Events provide us with the opportunity to change the experience every time you come," he said. "All this adds to the vibrancy of Singapore ... we market this very strongly."

Another major component of tourism in Singapore is MICE--meetings, incentives, conventions, and exhibitions. Shiraz says MICE business is big business, with about 20 per cent of all visitors to the island state there for work.

"It's big business because people who come on those trips spend more and stay longer, and thereby contribute to the economy," he said.

Miami of Asia

In the past 10 years or so, Singapore has experienced a ten-fold increase in cruises coming through.

According to Shiraz, year-round cruising has encouraged people to fly in, take a cruise, then fly out, taking time to spend a few days in Singapore along the way.

"We push the cruise option very aggressively these days as well," he said.

A raft of attractions such as a night safari, zoo and bird park also help boost visitor numbers, with half a dozen new drawcards opening this year.

Singapore is an open economy with no restrictions on foreign ownership, so it is relatively easy to establish a business presence.

In regards to tourism, Shiraz says there are a lot of business operators, with growth areas including leisure, food and beverage, and even retail.

The population has high disposable income levels, and is right on the doorstep of any business.

"Being compact is an advantage because customers aren't too far away," says Shiraz, who pointed out that one could open a restaurant and have the whole population within half an hour's driving time. Tourism is certainly one of the new engines for continued economic growth. Shiraz says that by 2020, 100 million Chinese alone were expected to be travelling overseas.

"Even if we get five per cent of that 100 million that would be boom time," he said.

He adds the Singapore tourism market was poised to grow, and the long term scenario was very bright.

SINGAPORE TOURISM
SNAPSHOT

Singapore attracts 7.5 million
visitors annually, 70 per cent of
whom are from Asia.

The majority come for leisure
purposes.

The leading markets are (2001):

Indonesia    1.4 million
Japan        756,000
Malaysia     576,000
Australia    555,000
China        (Just over) 500,000

SOURCE: SINGAPORE TOURISM BOARD