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."