This study was commissioned to analyze why the figure of tourer reachings to Singapore has dropped over 2009 and the recommend ways of increasing the figure of tourer reachings to Singapore.
Tourism is the universe ‘s largest industry. Tourism provides authoritiess with the significant revenue enhancement grosss every bit good as offers the greatest planetary employment chances. Based on the Media Release from Singapore Tourism Board ( STB ) on 23 April 2009 and 27 October 2009, the figure of tourer reachings to Singapore has declined compared to 2008. The overall of gazetted hotel industry public presentation besides bead compared to a twelvemonth ago. The decrease of the entire figure of tourer reachings to Singapore was caused by swine grippe or hog grippe which onslaught Singapore in 2009. Another ground for the diminution in figure of tourer reachings to Singapore was the planetary economic system crisis which affected all sectors around the universe.
The study finds that STB can make more to pull more tourers to come and pass in Singapore.
Recommendations discussed include:
engage with circuit operators and travel bureaus in abroad
pattern the gross direction system in hotels
promote Singapore by printing advertizements in abroad
2. Problem Identification and Analysis
Harmonizing to the statistics on April 2009, from Media Release by Singapore Tourism Board ( STB ) , the overall figure of visitant reachings to Singapore has dropped to 790,000 in March 2009, which were about 13.2 % compared to the same month in 2008.
The overall gazetted hotel industry public presentation besides bead compared to 2008. The Average Room Rate ( AOR ) decreased by 13.1 % with entire 74 % for March 2009. The Average Room Rate ( ARR ) for March 2009 was estimated at S $ 196, which was 18.5 % lessening compared to a twelvemonth ago. Gross Per Available Room ( RevPar ) was reached S $ 145, posting a 30.9 % lessening against March 2008. Hotel room gross was expected to make S $ 125 million, stand foring a 33.3 per centum point lessening in March 2009.
Swine grippe or besides called by hog grippe is one of the ground which affect the decrease of entire figure of tourer reachings to Singapore. As of 21 June 2009, based on Ministry of Health web site, there were 142 reported human instances of swine grippe in Singapore ( SMF, 2009 ) . Another cardinal influence can be caused by the fiscal crisis in 2007. The planetary economic system crisis has resulted in the prostration of big fiscal establishments, downswings in stock markets, and bailout of Bankss by national authoritiess around the universe.
Refers to the statistics from October 2009, the visitant reachings to Singapore registered an addition figure to 799,000 or approximately 7.1 % in September 2009. Indonesia, People ‘s Republic of China, Australia, Malaysia, and India were the top five visitor-generating markets in Singapore for twelvemonth 2009.
The addition of entire figure of visitant reachings to Singapore can be due to Formula 1 ( F1 ) Singapore Grand Prix which was held from 25 September to 27 September 2009. F1 had attracted a batch of visitants to come to Singapore to watch and bask the race. The other factor that influence the entire figure of visitant reachings to Singapore is the public vacations, e.g. , Hari Raya vacations and Japan ‘s five yearss Silver Week.
3. Statement of Key job and Issues
Based on the Media Release from STB, presently there are four types of hotel grade in Singapore. The hotel grade system is used to categorize the different hotels in Singapore by STB into grades based on a combination of factors that include location, mean room rates, and merchandise features ( STB, 2006 ) . The four types of hotel grades are economic system, mid -tier, upscale, and luxury.
Economy tier includes hotels in the budget section and are by and large located in outlying countries ( STB, 2006 ) . In March 2009, hotels in economic system grade achieved the smallest lessening in ARR and RevPar compared to March 2008.
Mid – grade includes hotels which are chiefly located in premier commercial zones or instantly outlying countries ( STB, 2006 ) . Hotels in mid – grade recorded the highest and the least diminution AOR compared to other three grades in March 2009. The most decline AOR in March 2009 was achieved by economic system tier hotels.
Based on the statistics in September 2009, the AOR of all grades increased compared to the same month last twelvemonth. It was stand foring the growing of the entire figure of tourer reachings to Singapore.
Upscale grade includes hotels in the upscale section and are by and large in premier locations or hotels with dress shop positioning in premier or typical locations ( STB, 2006 ) . Hotels in upscale grade achieved the smallest diminution in RevPar and ARR in September 2009 compared to a twelvemonth ago. Hotels in upscale grade besides recorded the largest growing of more than 5 % compared to other grades in September 2009. This indicates that hotels in upscale grade are non holding a important impact compared to hotels in economy-tier, mid-tier, and luxury-tier.
4. Coevals and Evaluation of Alternative Solutions
STB can prosecute the circuit operators and travel bureaus in abroad which cooperate with Singapore to advance the Singapore ‘s touristry sector to their states. The circuit operators and travel bureaus may advance Singapore by forming either “ free and easy ” or tour bundles to Singapore as the finish to pass their vacations with twosome and household.
Hotels besides may pattern the gross direction system in their hotels. Revenue direction system is used in a hotel to cipher the room rates in order to maximise the gross every bit good as the net income. Rooms in a hotel are the perishable merchandises and any suites which unsold in a dark are calculated as a loss. With the gross direction system, hotels can cipher their rates to be offered to their invitees.
STB besides can advance Singapore by printing advertizements in the foreign states, e.g. , South Korea, Taiwan, United Kingdom, and many others. The advertizements can be used to advance the major events in Singapore in order to pull more tourers to come and see Singapore.
5. Execution of Recommendations
STB was announced BOOST ( Constructing On Opportunities to Strengthen Tourism ) in 2009. STB provided S $ 90 million to assist the touristry sector drive through the ambitious times. The purposes of BOOST are to hike the demand of tourers to go to Singapore, the authorities ‘s support support to the touristry sector, every bit good as the hereafter of the touristry sector ( STB, 2006 ) .
Tourism industry will convey the multiplier consequence when the money are being spend by the tourer to go, to remain in a hotel, and to eat in a eating house. The money is recycled by the travel bureau, hotel, every bit good as eating house to buy more goods and even to engage more people. Employees of the concerns which are the local community besides will pass a higher proportion of their money locally on assorted goods and services.
In the touristry industry, each touristry section besides need to admit the mutuality between the assorted sections of touristry, for illustration: housing, travel, nutrient service, and attractive force or diversion topographic point. With the mutuality, those concerns can make more net incomes by attract more tourers to come to Singapore and pass more in Singapore. For illustration: travel bureau in Singapore can organize with hotel, eating house, every bit good as the attractive force topographic point to supply tourers who come to Singapore by a tour bundle. Travel bureau can make a bundle with a combination of air ticket, adjustment, dining, and metropolis circuit.
6. Current and Future Trends of Singapore Tourism
Resort World Sentosa and Marina Bay Sands are the two incorporate resorts in Singapore which had opened in 2010. Resort World Sentosa was developed by Genting Singapore while Marina Bay Sands was developed by Las Vegas Sands. The completion of Resort World Sentosa and Marina Bay Sands are expected to hike the touristry sector in Singapore.
Formula One ( F1 ) Singapore Grand Prix
Formula One ( F1 ) Singapore Grand Prix is the major event in Singapore which started in 2008. The first race was held at the new Marina Bay Street Circuit and it was the first night-time event in F1 history ( Wikipedia, 2010 ) . Singapore Tourism Board ( STB ) was signed a five twelvemonth trade with Singapore GP Pte Ltd. and Bernie Ecclestone in order to hike the touristry sector in Singapore by attract fans of F1 and foreign tourers to come to Singapore every bit good as bask the Singapore ‘s life style.
Great Singapore Sale ( GSS )
Great Singapore Sale ( GSS ) is an one-year shopping event which organised by Singapore Retailers Association, under support from STB and Spring Singapore, in order to advance the touristry sector in Singapore. GSS is conducted in the terminal of May to the terminal of July every twelvemonth in Singapore. During GSS, there are many particular privileges that promenades, shops, and retail companies offer to tourers, for illustration: late midnight store, epicure dining, health, and nightlife experience ( Wikipedia, 2010 ) .
Gardens by the Bay
The Gardens by the Bay is the combination of three major Parkss around the Marina Bay and it is expected to be complete by the terminal of twelvemonth 2011. The three Parkss will be at Marina Centre, Marina South, and Marina East. Gardens by the Bay will be functioning as the 2nd Singapore botanical garden which allocate of 94 hectares of premier waterfront land for park infinite ( Wikipedia, 2010 ) . The outlook for the development of Gardens by the Bay is to pull more tourers to come to Singapore.