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The
Straits Times, 19 Jun 04
Insight: Vying for a bigger piece of the
tourism pie
By Serene Goh
The seduction game Sentosa is being touted as the jewel in Singapore's
tourism crown as the country launches a renewed drive for the tourism
dollar. But is it a case of too little too late? Insight looks at
the tourism sector's attempts to remake itself.
GET them to stay longer, spend more and come back again. That, in
a nutshell, is the mantra for tourism businesses in Singapore looking
to entice travellers here.
And now, all eyes are on developments in Sentosa and the Southern
Islands, which at $7 billion, are tipped to be the come-hither icon
that the country needs.
The 10-year undertaking, however, begs the question: If we build it,
will they come?
Although the islands are being positioned as the jewel in the crown
that will give tourism here a much-needed fillip, their potential
alone does not remove the hurdles facing the sector, which employs
over 150,000 people and contributes about $4.7 billion to the economy
annually.
First, the good news. Industry operators point out that the tourism
market is about to see an explosion with the arrival of budget carriers
and the growing affluence of people in Asia, especially in China and
India. Together, these two trends will mean millions of new travellers.
Travellers themselves are becoming an increasingly diverse group,
with stereotypical leisure tourists - those armed with passport pouches
and digital cameras - forming just one slice of a huge pie.
Now, the troubling news. Repeatedly, tourist insiders say holidaymakers
could be hard pressed to find anything unique in Singapore - getting
them to come, stay long and spend much is difficult. After all, look
at the competition - and their campaigns. Travellers would find hard
to resist the film-worthy beaches of 'Amazing Thailand', 'A Different
Light' of Australia, the tropical rainforests in 'Malaysia, Truly
Asia' and the 'Live it! Love it!' shopping in Hong Kong.
There is the other downer for Singapore: Its strong dollar makes it
a more expensive playground compared to these regional options. Meanwhile,
visitors from bigger cities find nothing here they cannot otherwise
get at home.
As it is, there is already scepticism about a better, brighter Sentosa.
Some say it has languished too long under government management. Others
recall its failed water park and high charges previously.
With Sentosa slow off the mark, critics are keen to point out, other
places have surged ahead with their tourism offerings. They note,
for example, Dubai's offshore, man-made luxury development, the Palm
Islands, for the rich and famous.
Then there is the old bugbear that detractors always cite: Singapore's
small size - and equally modest attractions - is the reason visitors
stay for such a short time, an average of two days.
Mr Lim Neo Chian, head of the Singapore Tourism Board (STB), has pointed
out that fixed asset investment in Singapore attractions had dropped
to an average of $63 million a year between 1995 and 2001, compared
to an annual $168 million in the early 1990s.
Sentosa's development will at least change that. But if Sentosa takes
a while to morph into an object of great seduction, and regional competition
is heating up and the Singapore dollar is too strong, what else can
the tourism sector bank on?
All is not lost, say those who are more optimistic. Their argument
is that while leisure tourism brings in the bucks, the smart money
is really on a different type of tourism.
Travellers with a purpose other than just leisure are the key that
will unlock more tourism earnings. Some of these tourists will even
end up staying here for longer spells by buying property or sending
their children here or starting businesses here, thus spending more
money than leisure tourists and even making investments here.
This new set of tourists may not be immediately obvious to the average
Singaporean more accustomed to lamenting that this place is too dull
for tourists. But international hospitality groups here, among them
The Ascott and Raffles International, the STB and other private operators
have divided these travellers into three groups: the business-convention
set, the education traveller and the medical tourist. To accommodate
them, no piling will be required. Singapore already has a sophisticated
infrastructure ready and waiting.
Mr William Tan, president of the National Association of Travel Agents
Singapore (Natas), said money would be 'well spent' if invested into
gearing such establishments as medical and educational institutions
to target tourists. But, he pointed out: 'The change of mindset from
top management to the lowest ranking staff must be there before this
can be successful.'
The benefits of targeting this set of travellers are twofold: businesses
will cater to their needs; they will be playing to Singapore's strengths.
Mr Ho Kwon Ping, executive chairman of Banyan Tree Holdings, said
rather than compare itself with countries blessed with natural attractions,
'Singapore needs to position itself like a Sydney, an Auckland, a
San Francisco or Hong Kong - cities with exciting harbours and harbour-related
attractions'. 'Singapore cannot try to be all things to all people
- an exciting harbour front city and a pristine resort like Bali or
Phuket, at the same time. It is essentially a city-state, and has
to accept this fact.'
MEETINGS AND INCENTIVES
DOLLARS generated from meetings, incentives, conventions and exhibition
(Mice) are nothing to be sniffed at. Such events have a multiplier
effect on any economy - promising a return of up to 12 times of what
it costs to host them.
Business travellers are a resilient market too. STB's statistics for
visitor arrivals showed that while the number of holidaymakers dropped
by 2 per cent last year because of Sars, the number of business visitors
remained constant.
Besides, Singapore can already boast several venues fit for Mice purposes.
Mr Sonu Shivdasani, chairman and chief executive officer of the Six
Senses chain of resorts and spas, pointed out that while Singapore
may have no spectacular sights suitable for beach resorts, 'conventions
marketing makes a lot of sense because the infrastructure is here'.
Mrs Diana Ee-Tan, Raffles International's senior vice-president of
marketing, illustrates that point. Picture it, she said, an international
businessman walks into Suntec City for a convention. His wife and
two children are in town with him, and the whole family is staying
at the Westin Swissotel. The kids would prefer to be outside, say,
swimming at Sentosa. In the evenings, dad takes his potential clients
to any number of reputable restaurants. Indeed, he has an expense
account for this purpose. All four arrive two days before the convention
so dad can set up his booth. All four will stay one day after his
three-day convention is over, so he can wrap up work. While he's at
it, mum might treat herself to an afternoon at the hotel's Amrita
Spa. Voila! A three-night stay for a family of four just became six.
Citing numbers from the Statistics Singapore Newsletter, Mrs Ee-Tan
pointed out that the country is facing intense competition from the
region. 'If you look at our development in the last 10 years, what's
very sad is that our industry's revenue per available room has actually
consistently fallen. 'But when you look at the years from 1989 to
1995, when our revenues were higher, those were during the time that
conventions marketing overseas was actively being undertaken.'
GET WELL HERE
SINGAPORE'S reputation as the region's hub for health-care services
is an area that has opened up opportunities for integrated groups,
such as CapitaLand. Under its hospitality arm, Raffles Hospital and
Raffles Swissotel together offer packages that combine hotel stays
with health and magnetic resonance imaging screens and even botox
treatments, ranging from $390 to $1,995 per person.
The Ascott's serviced apartments, meanwhile, are being marketed as
ideal accommodations for medical tourists who need anywhere from a
week to months to recuperate after major surgery. The group's chief
executive officer, Mr Eugene Lai, said serviced apartments could ensure
their privacy, allow caregivers to stay with and watch over them,
while giving them a sense of being at home.
THE EDUCATED CHOICE
REGIONAL travellers considering pursuing government-accredited educational
programmes here will not only bring in their dollars, but also those
of their visitors. What's more, the major issue underscoring all on-going
developments in tourism, that of safety, becomes even more acute when
one is considering staying longer. It cannot just be a surety at the
airport or over a weekend.
Experts say that national safety is the backbone of confidence among
travellers, especially if, like students, they could take up to several
years to obtain a degree or diploma.
Natas president Mr Tan says Singapore's qualities - 'Clean! Safe!
Efficient!' - are not wasted on tourists whose travel plans are not
entirely leisure-seeking. Singapore's security measures are not only
good, but they are also unobtrusive. 'Tourists do not find it an issue,
so the confidence level is there,' he added.
Indeed, experts say that the future of travel and tourism in a post-9/11
world depends very much on the safety element. Now, critics who have
long regarded Singapore as being a too-safe environment could find
those very attributes becoming more attractive and valuable.
Sentosa or no, that alone may just keep Singapore on the tourism map
for awhile yet. |
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