Haze and currency crisis hit Singaporean tourism
Haze and currency crisis hit Singaporean tourism
SINGAPORE (AFP): Singapore faces nearly zero growth in tourist arrivals this year after smoky haze from Indonesian forest fires and a regional currency crisis hit travel in Southeast Asia, officials said yesterday.
"Essentially for short-haul markets we're affected by the currency crisis," said Anna Rajah, manager for corporate and media communications of the Singapore Tourism Board (STB), referring to the sharp plunge in Southeast Asian currencies since July.
"For the long-haul markets it was the perception that the haze affected the whole region even if Singapore was relatively unaffected by the haze," she told AFP, adding that among those turned off by haze fears were the Japanese.
Singapore, which recorded about 7.3 million arrivals in 1996, is the aviation hub of Southeast Asia, boasting the region's most modern airport and extensive links to North America and Europe.
STB figures show that arrivals in October plunged 17.6 percent from a year ago to 495,327, with declines in arrivals from all Southeast Asian countries as well as Japan, Hong Kong, South Korea, Taiwan, the United States and Britain.
Arrivals in the 10 months to October rose only 1.2 percent from a year ago.
About one third of all tourists visiting Singapore come from neighboring countries, particularly Indonesia and Malaysia. Asian visitors led by Japanese account for about 70 percent of arrivals.
Currency problems which began after Thailand's de facto devaluation of the baht have made it much more expensive for Southeast Asians to travel to Singapore, whose currency has appreciated against theirs despite easing against the U.S. dollar.
Smoke from forest fires in Indonesia began to affect the region in August and eased only last month with the onset of monsoon rains combined with intensified efforts to extinguish the fires.
At the height of the problem, thick clouds of haze floated over Singapore, Indonesia and Malaysia, with some effects felt in Thailand and the Philippines. Malaysia and Indonesia received the brunt of the problem.
"Although Singapore was relatively unscathed by the haze we received a lot of negative media coverage which tended to lump the whole of Southeast Asia together," Rajah said. "This obviously affected arrivals into the region."
"For long haul travel, Singapore is seen as part of a multi- destination itinerary. When some tour operators skipped other countries in the region, it meant that Singapore was also dropped."
Rajah declined to comment on 1998 prospects but the local Business Times said most hotel consultants and research analysts expect flat, if not negative, growth in 1998.
In recent weeks even Japan and South Korea have been hit by financial turmoil, resulting in less disposable income among travelers from the two key markets.
Rajah said the STB in cooperation with Singapore Airlines and the local tourism industry is hosting free visits for foreign media, travel agents and tour operators until mid-February "so that they can experience first hand that this destination is free from the haze."
Last week, national tourism organizations in Southeast Asia issued a joint statement declaring that the haze had vanished and it was safe for visitors "to travel to the region now and enjoy blue skies and brilliant sunshine."