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STB Chairman (2005-2010), Mr Simon Israel
Asked to reflect on tourism developments over the last seven years in Singapore, and his key word of choice is “transformation”. In his opinion, the transformation has materialised both at the industry level and in the role that STB has been playing in re-making Singapore “as a place to live, work, play – and visit.”
He believes that great cities are built for your own citizens and “if you build a great city, people will come”.
“Somebody didn’t sit down and say, let’s design London and Paris for tourism. It’s even more vital for Singapore because we are such a small city state and we have to harmonise everything into what works for Singapore.”
When he first stepped into the role of STB chairman, he recalled that the last major investment then was the Night Safari, and other investments in tourism infrastructure were lagging up to that point.
Since then, projects such as the Integrated Resorts and Formula One night race and the myriad smaller-scale investments by the private sector have truly transformed the industry, as illustrated by the latest tourism statistics recently released by STB.
Tourism receipts from January to December 2010 reportedly topped S$18.8 billion, exceeding the year’s forecast range of S$17.5 – S$18.5 billion. International visitor arrivals to Singapore also saw strong numbers, reaching 11.6 million last year, which falls within the forecast of 11.5 – 12.5 million for the year. Gazetted hotel revenue was estimated at S$1.9 billion in 2010, up by a remarkable 21.8% against 2009.
“The hard work done by STB under former Chief Executive Lim Neo Chian and current Chief Executive Aw Kah Peng has brought these results about,” he said.
Mr Israel is quick to point out that he played a very minor role in guiding STB and attributed the positive results of Singapore’s recent evolution to the effectiveness of STB management.
As an organization, he said, STB too has been transformed – from a tourist promotion agency into a tourism economic development agency. “The skill set employed at STB now is very different to what was required seven years ago.”
Indeed, he believes that the maturing of STB was fundamental to the successful makeover of Singapore’s tourism landscape.
Mr Israel, who is originally from New Zealand but left three decades ago, identified the “Singapore Inc” model – where government agencies can work in tandem to execute a common strategy – as another key contributing factor, one that is difficult to replicate.
“That’s why it is unique. It’s a byproduct of who we are, our system of government, our ability to act in a unified fashion. Singapore is capable of making the right decisions without getting too bogged down by the politics of things.
“It’s very difficult for other countries to execute and mobilize.”
“I heard it so many times – after the F1 race and how it was executed, people saying, this could only be done in Singapore.”
In his forecast for the future, he said that the tourism industry needs constant reinvention in order to remain relevant. “In time, there will be a need for another significant project to drive the developmental compass. There will also be a need to continue cultivating and reinforcing the tourism ecosystem, and the softer side of tourism.
“A lot of that will come from a multitude of smaller stakeholders and investors.” He cited Singapore’s flourishing arts scene and growing number of restaurants as cases in point.
“On its own, each project may be small but the sum of its parts will have significant impact.”
In terms of the future prospects of Singapore tourism, manpower limitations pose an additional challenge which is magnified by the sheer numbers of people required to work in the industry.
“What I hope is for the perception towards the service industry to change, that people will recognise the value of building a career there. It’s a skill you shouldn’t look down on and you only have to go to Japan to see that.”
Reflecting on projects such as the Integrated Resorts (IRs) and the FORMULA 1 SINGTEL SINGAPORE GRAND PRIX, he said they were high-risk ventures for both the private sector investors and government. “You have to be patient because it takes a long time for such massive investments to show results.
“Of course, the people taking the risks are the private investors but the government stood the risk of having these huge structures standing empty.”
On his point about great cities being built for citizens first, P@SSPORT asked if the Integrated Resorts were built for tourists or citizens. “They were targeted at tourists but, as it turned out, they are equally interesting to locals,” he said.
Asked if he travelled much personally, he revealed that in his last two careers spread across 30 years in the fast-moving consumer goods industry – he worked with Danone and Sara Lee – he spent 70-80 per cent of his time travelling and at one point, clocked five million miles on one airline programme.
“I am happy to stay put for a while, I have no urge to travel,” he laughed.
He noted that today’s travellers have a lot more choices with regard to airlines and hotels but the main problem lies with airports that cannot cope with increased passenger volumes. Tightening security regulations across the board is also a stumbling block.
“In particular, the Western world has not kept up with its infrastructural improvements. Some of the best airports in the world are now in Asia. Consider the likes of Beijing Capital International Airport and Singapore Changi Airport. I think Asia has done a better job of keeping up with infrastructure than the West.”
Having been in Asia for the last 30 years, Mr Israel called it “a natural order of things” that Asia is now such a major global economic powerhouse.
“It is easy for us to see it here but it is hard for the West to accept that.”
To the question of how he sees Singapore 10 years from now, his reply is that “ Singapore will emerge as a truly global city and one of the key cities in Asia. We are on the cusp of that.”
