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Mr Lim Neo Chian, Deputy Chairman and Chief Executive of STB : Seize the opportunity and prepare for the future.
Singapore is on a roll. And that's not only because of the latest news that Formula 1's coming to town. Major developments are taking place that will transform Singapore as a place to work, live, play and result in a surge of visitors.
The question is: Is the Singapore travel trade ready to seize the opportunity and welcome and handle the additional visitors? That was the challenge thrown down by Chief Executive and Deputy Chairman of the Singapore Tourism Board (STB), Mr Lim Neo Chian, at the Singapore Tourism Industry Conference on 14 May.
Giving a report card on the state of the industry, he said Singapore had experienced a "golden year" in 2006. Targets were exceeded, two Integrated Resorts were awarded, which has had a positive impact on tourism investments, and hoteliers were enjoying record occupancies and rates.
The numbers have continued to climb through the first quarter of 2007 and if this is kept up, the industry will be on target to meet this year's goals of S$13.6 billion in tourism receipts and 10.2 million visitor arrivals.
The global outlook was also positive, he said. Asia's outbound tourism market grew by 8% last year, more than the global increase of 5%*. Two giant markets, China and India, were continuing to fuel growth. Low cost carriers were changing the aviation landscape.
(Left to right) Property tycoon Ong Beng Seng, Minister of State for Trade and Industry S Iswaran and Deputy Chairman and Chief Executive of STB Lim Neo Chian
Singapore's neighbours were also doing well, Mr Lim observed. Malaysia saw 17.6 million arrivals, Thailand saw 13.8 million and Hong Kong recorded 25.3 million arrivals, of which 11.7 million were non-China arrivals. All ships, he said, were sailing up the same channel and would continue to grow with continuous hard work put in.
Reeling off the investments in infrastructure, he said the ground was being laid that would change Singapore's tourism landscape forever.
The National Parks Board was investing in the Gardens by the Bay - a 54ha site is being transformed into a botanical gardens with a conservatory. The Urban Redevelopment Authority was creating a new "energy zone" in Marina Bay. A Sports Hub was emerging that would become a lifestyle destination with a 55,000-seat, all weather, stadium. A new National Arts Gallery was in the making at the City Hall and Supreme Court buildings.
The two Integrated Resorts, representing $10 billion of investments, would be ready by mid-2009 and 2010.
"Expect a 25% spike in arrivals that year. That means an additional 2.7 million visitors in 2009, with an average length of stay of 3.4 to 3.6 days. That means an extra 50,000 visitors a day at any one time," Mr Lim said.
He said industry partners needed to put in plans to leverage the opportunity and "transform business models".
"It is vital - we must transform to stay relevant."
The tourism chief said supply issues must be addressed now. "We have 2.5 years' lead time to prepare."
He said there was a spike in demand across all sectors and Singapore would still face a room shortage despite the 4,300 rooms in the two Integrated Resorts.
With a current room inventory of 35,000, he said there would be a shortfall of 4,100 rooms by 2010. Today, the industry is short of 500 rooms.
He said five sites had been awarded which would add over 1,800 new rooms. The STB would step up its promotion of investments. In total, the URA had identified 13 sites to be activated by the private sector with a potential for 5,000 hotel rooms.
He said the URA and STB were exploring all options - floating hotels, portable hotels and adaptive reuse of existing buildings.
Turning to accessibility, he said airport capacity was not a concern but air capacity was. Singapore needed to go beyond the 4,200 weekly flights and 180 city links.
He said an ASEAN open skies agreement was being worked out which, if it meant opening up the Singapore-Kuala Lumpur air corridor, would augur well for the future. Charter flights were also an option, he said.
On the ground, he said road access had to be improved, car parks expanded and "we must make sure we have enough taxis". Sea access too had to be looked at - an estimated 2.4 million visitors will arrive by sea in 2010, he said.
What all these developments also meant is that Singapore would face a manpower crunch, said Mr Lim, noting there was a lack of workers with specialised skills. The poor image of certain tourism-related jobs was also a hurdle.
He urged the industry to make use of the STB's $30 million training scheme as well as attract and prepare mature local workers. "Play your part," he said.
Service quality was a critical area and he said, "We must deliver on our brand promise."
*Global Travel Trends 2006 Report
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