The Singapore Tourism Board (STB) announced at the ASEAN Tourism Forum (ATF) held in Hanoi, Vietnam, that Singapore’s tourism sector had generated an estimated $14.8 billion in tourism receipts (TR) in 2008. This represents a growth of 5% over 2007 and sets a new record for Singapore, despite the impact of the global economic slowdown in the second half of the year. In terms of visitor arrivals, Singapore welcomed an estimated 10.1 million visitors in 2008, a decline of 2% against 2007. Total visitor days grew 6.9% to reach 39.8 million days in 2008.
Commenting on the performance, the new STB’s Chief Executive, Ms Aw Kah Peng said, “Singapore’s tourism sector turned in a credible and robust performance in 2008 despite the dramatic turn in the global economy in the second half of the year. With the unwavering support of our industry partners, we were able to achieve record tourism receipts and will continue with our long term strategy to increase visitor spending.”
Factors that contributed to the tourism sector’s performance in 2008 included Singapore’s growing attractiveness as a destination with many exciting tourism products, more competitive air travel options and greater accessibility to Singapore, as well as STB’s global marketing efforts.
The top five markets for 2008 were Indonesia (1,730,000), PR of China (1,080,000), Australia (820,000), India (770,000) and Malaysia (650,000), which accounted for about 50% of total visitor arrivals.
Hotel sector performance remained robust
Based on January to November 2008 figures, Singapore’s hotel sector performance has remained robust. Compared to the same period in 2007, the Average Room Rate increased by 23.5% to reach S$248, Revenue Per Available Room grew by 15.4% to reach S$203, total hotel room revenue rose 14.1% to reach S$1.9 billion and the Average Occupancy Rate (AOR) decreased by 5.7 percentage to reach 82%. The fall in AOR was driven partly by new hotel rooms coming on stream and, in recent months, by the decline in visitor arrivals.
2008 – Presenting Singapore in a new light
“The success of inaugural milestone events such as Singapore Airshow, Singapore International Water Week and the 2008 FORMULA 1™ SingTel Singapore Grand Prix last year truly marked a turning point for Singapore as a destination. The world now sees Singapore in a new light. While we have reinforced our strong reputation as a city for business, we have also injected a fresh sense of excitement through the delivery of world-class events that are uniquely Singapore,” said Ms Aw.
Annual signature events, such as the Great Singapore Sale, Christmas in the Tropics, and ZoukOut, as well as over 6,000 business events, including Biomedical Asia and ITB Asia, also added to the year’s success in showcasing the Singapore brand as one that continues to attract a strong showing of both international and regional visitors.
Further underlining the strength of the Singapore brand, Singapore also won accolades in the travel trade including being ranked “Top International Meeting City and Asia’s Top Country and City for Meetings” in 2007 by the Union of International Associations (UIA) in its global rankings released in August 2008, and fourth in Euromonitor International’s Top City Destinations Ranking in 2007, released in December 2008.
2009 expected to be tough, but long term prospects remain positive
In October 2008, the World Tourism Organization (UNWTO) projected that global tourism growth would be flat or marginal at best in 2009, with travelers becoming more cost-conscious and preferring short-haul, value-for-money destinations that offer favourable exchange rates. Given the continuing volatility of the global economic climate, we expect 2009 to be a challenging year. Despite this, the mid to long term potential for tourism, particularly in the Asian economies, remains bright.
Singapore Government steps up to help businesses in downturn
The Singapore Government has already started to respond to the global economic situation. Amongst other measures, we have introduced a number of schemes to provide financial assistance, subsidize capability development and implement cost-cutting measures to help businesses ride out the slowdown.
In addition, the Government has worked with industry partners and unions to organize a series of forums to help Singapore businesses address manpower issues and create awareness of the assistance schemes relevant to them. Briefings have been conducted for tourism-related sectors like the hotel and food and beverage industries, and there will be upcoming forums for the retail, attractions and travel services, and MICE (Meetings, Incentive Travel, Conventions & Exhibitions) industries.
2009 global marketing campaign and stronger focus on regional travel
Working with the tourism industry, the STB is also developing a global marketing campaign to drive visitorship to Singapore, with a particular emphasis on regional markets. To further help tourism-related businesses in Singapore, the STB will enhance its assistance schemes.
“We believe visitors will still need to and want to travel, whether for leisure or business. But no doubt they will be more cost-conscious and will want to get more out of every trip. So STB has to work hand in hand with the industry to ensure Singapore remains a destination of choice, and one that both creates and delivers,” said Ms Aw.
More details on STB’s tourism strategy and plans will be shared in February 2009.
Developing the tourism sector for long term growth
The STB remains positive about the long term potential of tourism and will continue to execute concrete plans to develop the sector. There is a strong line-up of new developments including products such as the integrated resorts, the International Cruise Terminal, and Gardens by the Bay, and new events like the Singapore 2010 Youth Olympic Games. The STB will also continue to emphasise capability developments such as service quality.
“Our long-term focus is to create a Singapore experience that differentiates us as one of the most enticing places to visit. In 2008, we presented new perspectives of Singapore to the world, and we will continue to add depth, vibrancy and energy to the Singapore experience,” said Ms Aw.
For more information, please visit www.stb.com.sg.
Joachim Fischer, currently in Hanoi, Vietnam
