Man on a mission, tourism
with purpose

Tourism 2015 has elevated the importance of tourism. It sets clear goalposts. Get behind it and transform, urges the chief of STB.

"Times flies, doesn't it," said Mr Lim Neo Chian, Deputy Chairman and Chief Executive of the Singapore Tourism Board (STB) as he walked into the meeting room.

He was referring to the fact that this month, he would be into his fourth year at the helm of the organisation. "It seems only yesterday that I started with the board. But a lot has happened and a lot has changed in the last three years."

For him, the biggest change has been about elevating the importance of the tourism sector in the national economy.

"That's what Tourism 2015 is all about. It's about reversing the declining importance of tourism in the economy. It's about setting a goalpost. It's about galvanizing the industry, the STB and all government agencies so that together, we meet the targets."

And while most have accepted the Tourism 2015 objectives - double the tourism arrivals to 17 million and triple the tourism receipts to S$30 billion - are stretch targets, he said: "People are just looking at how it can be done, not why it should be done.

"That's a big mindset change. People are not questioning the targets, but they are looking at ways to achieve that."

The clarity of the targets has also sunk in, he said. "Everybody's got that - double arrivals and triple receipts - in their heads and are coming out with programmes to make it happen."

No longer why but how

Tourism 2015 has also brought about a sea of changes within the STB, said Mr Lim. "Nobody likes to work in an organisation that is perceived to be a sunset organisation. People are now upbeat and optimistic. There is a can-do attitude within the STB.

"We have the government behind us, giving us the resources and political support, and that allows us to do more things."

Setting clear targets has also removed the perennial debate over whether Singapore should have more hotel rooms. "Now the hotel industry accepts we need more rooms to meet our targets. What they're asking is that we pace and regulate the supply to meet the demand," said Mr Lim.

Pivotal to Singapore meeting Tourism 2015 targets are the two Integrated Resorts (IRs). "We are very happy with the outcome of the Marina Bay bid. That represents S$5 billion worth of investment."

With four contenders vying for the Sentosa IR, Mr Lim said it was important Singapore showed the same transparency and professionalism with the selection process as it demonstrated with the first IR bid.

"We have to make sure the process is handled in a way that gives credit to Singapore. This will enhance overall investor confidence, which will lead to more investments - whether in tourism or not - coming to Singapore."

Targets within reach

Mr Lim said the two IRs, coupled with other projects being planned, would put Singapore within reach of its targets.

Reeling off the other projects - three sites on Orchard Road, Vivo City, the second Botanic Gardens, the new Sports Hub - and three clusters which could be further developed (Marina Bay, Sentosa and Mandai) - he said: "We will have so many more attractions that will appeal to visitors."

Then of course there's the Business Travel and MICE (Meetings, Incentive Travel, Conventions and Exhibitions) cluster on which Singapore is banking to deliver at least 35% of the Tourism 2015 target receipts of S$30 billion.

"We see more scope to strengthen this sector. Many of Singapore's attributes lend itself to the making of a great BTMICE destination," said Mr Lim.

"The Marina Bay Sands will be a catalyst. By 2015 the downtown area will have a total 200,000 square metres of MICE space and 10,000 hotel rooms within walking distance of Marina Bay. There are very few destinations offering the same critical mass and attractiveness - this will be Singapore's main selling point."

Having beefed up the BTMICE division within the STB, Mr Lim feels a lot more needs to be done about industry development. "If we are to grow the sector then obviously we will need a more professional and higher quality industry to compete at that level.

"Of course, chasing and creating big events will be ongoing, but I feel we also need to pay attention to industry development."

Another critical issue is that of hotel rooms. "Whatever we do, we have to have rooms to enable our visitors to stay longer. Together with the Urban Redevelopment Authority, we have identified sites for development and put them on the reserve list for trigger. We want the private sector to take the lead to develop hotels.

"We need a wider range of hotels as well as interesting hotels that become attractions in themselves."

It is estimated that another 30,000 more hotel rooms will be needed under the Tourism 2015 plan. The crunch now is in the mid-tier and budget-tier segment where hotels in this category are averaging 90% occupancy rates on good days.

Mr Lim is confident that rates in Singapore will pick up enough to make it attractive for developers to build hotels. With high land costs and relatively low rates compared to places such as Hong Kong or London, some investors have stayed shy of developing in Singapore.

"Rates have gone up in the last two years. Demand is picking up. And we are seeing investor interest in developing on some of the sites that have been triggered.

"This is a positive sign that people see a better outlook for tourism in Singapore," said Mr Lim.

The competition is keen

As for Singapore's competition, he singles out Hong Kong-Macau, Dubai and Shanghai as the key destinations that could draw away BTMICE traffic.

To face the future and to prepare for a changing tourism landscape, Mr Lim urged all working in the tourism sector in Singapore to 'transform'.

"Our chairman calls it the 'transform cube' - the tourism sector, the STB and the individual.

"For the industry, I hope that people accept that life cannot be the same as usual. We have to transform to face the competition and to seize the opportunity when it comes. When there's sweet honey, people will come in and challenge you for the money. Then there's also the external competition. Whether you're a travel agent, hotelier or attraction, you have to change and adapt."

The transformation of the STB, meanwhile, is a work in progress, he said. "We started the process two-three years ago and it's ongoing."

As for individuals, his message was: "Adopt a new mindset, look at jobs not as permanent, lifelong employment, but as transferable skills. Adapt to change and be prepared to leave the old comfort zone."

As he did four years ago.