S'pore set for challenges of 21st century tourism

S'pore set for challenges of 21st century tourism

JAKARTA (JP): Singapore does not allow itself to be
constrained by its severely-limited space, natural resources and
labor.

The island republic therefore always not only tries to be
several steps ahead of its competitors but also moves to
transform its challenges and competition into opportunity.

This is the main thrust of Tourism 21, the blue print of the
Singapore Tourist Promotion Board (STPB), as explained yesterday
by Tan Chin Nam, the board's chief executive.

"We have been successful as a destination but we are moving
beyond that," Tan told The Jakarta Post in reference to
Singapore's vision for tourism which was launched this year to
meet the challenges of the 21st century.

The aim of the vision is to strengthen the competitiveness of
Singapore's tourist industry, and to maintain high growth rates
for visitor arrivals and tourism receipts.

"Tourism 21 is designed not only to further enhance
Singapore's role as a tourist destination but also as a tourism
hub for the region and a world tourism business center," said
Tan, who was here to attend the Indonesian Tourism Mart.

Singapore, Tan said, is working to create a totally new
experience for visitors by further capitalizing on its
progressiveness, sophistication and unique multicultural Asian
identity.

He said the New Asia-Singapore theme, chosen to replace
Surprising Singapore, would better suit the expression of modern
Asian dynamism in the 21st century.

"This new branding better embodies the sentiment of a place
where tradition and modernity and East and West meet," Tan noted.

Singapore -- a small island which stretches 27 kilometers from
north to south and 37 kilometers from east to west -- seems fully
aware of its natural limitations and the keen competition from
other destinations in Asia.

Singaporeans are already among the world's richest, with a per
capita income of more than US$26,000. And as they become
wealthier, the tiny island will become increasingly expensive for
visitors and shoppers.

Its image as a shopping mecca -- its second largest attraction
-- is being eroded because of rising labor costs, high retail
rentals and a strengthening currency. It will lose out to other
destinations, unless the foundations of its tourism industry
deepen and broaden.

In fact, its limitations and the keener competition from other
destinations are beginning to be reflected in the declining
growth rate of visitor arrivals, shorter lengths of stay and
consequently smaller expenditures.

True, Singapore is still among the world's top destinations
with 7.1 million arrivals and over US$8.1 billion in tourism
receipts last year. And the first eight months of this year saw a
2.4 percent growth rate in tourist arrivals, with 4.87 million
visitors, over the same period last year.

Indonesia remained the second largest source of tourists to
Singapore with 695,701 people, or 14.3 percent of total arrivals,
going to Singapore in the eight-month period.

But the growth rate is declining. STPB figures show that the
annual growth in visitor arrivals declined to 3.5 percent last
year from annual double-digit increases in the 1980s.

The Tourism 21 concept describes its underlying strategy as
'tourism unlimited': To develop the three tourist functions of
Singapore: as a better tourist destination, a tourism hub and a
world tourism business center.

The concept of tourism unlimited calls for Singapore's active
participation in the development of tourism in the region through
mutually-beneficial partnerships.

Huge investments by Singapore's state and private companies in
Indonesia's Bintan and Batam islands, Vietnam and Myanmar should
be seen in light of its strategy to transform competition into
business opportunities.

The rationale of the concept, according to the STPB, is that
as the attractiveness of each destination in the region is
integrated. collective attractiveness is achieved. Together the
various destinations in the region can develop a stronger and
more attractive tourism product.

Tan cited the blending of Singapore's city-sophistication with
Indonesia's rustic beach charm in the nearby Riau archipelago as
one example of how collective attractiveness could be developed
for mutual benefit.

"Indonesia-Singapore cooperation in tourism development has
been very good under the framework cooperation agreement signed
in 1994. We now have direct flight services to five destinations
in Indonesia in addition to Jakarta (Solo, Manado, Lombok,
Ujungpandang and Padang)," Tan said.

Partnerships with its neighboring destinations enable
Singapore to offer package holidays to include fishing, resort
living, sailing, cruising, hunting, mountain climbing and golf.

"We want to make Singapore the main gateway to new experiences
in other destinations in the Asia- Pacific, the region which is
very vibrant in the tourism industry," Tan said.

Singapore, already popular as a regional headquarters for
multinational companies, will concentrate more on the business
side of tourism through product innovation and the promotion of
tourism-related investment.

"We will attract more tourism-related businesses to Singapore,
using Singapore as a testing ground for new ideas, new business
successes."

Tan's rationale is that tourism is cross-sectoral. Hence,
there are many opportunities in Singapore for hotel management,
entertainment and transportation companies and other travel-
related businesses.

The city state is also reformulating its tourism products to
extend the average length of stay of visitors and to attract
return visits.

Among the programs cited by Tan are the development of more
thematic zones with distinct identities and a richer variety of
events to help package Singapore and neighboring destinations in
tour programs.

"We will integrate the hardware (physical infrastructure) and
software to create a total experience. In China town, for
example, we want to inject the soul, history and heritage to the
experiences of the visitors. In Orchard Road, we will invest more
to enrich shopping experiences, making them more enjoyable."

Tan is confident that its strategic location and excellent
infrastructure, combined with all the programs underway and to be
implemented under the Tourism 21 vision, will improve Singapore's
standing in tourism.

Singapore, he said, is looking forward to a big share of the
visitor arrivals in the Asia and Pacific region which, according
to a projection from the World Tourism Organization, will more
than double from 84 million in 1995 to 190 million in 2010.

Tourism 21 is designed to achieve Singapore's target of 10
million visitors and $11.5 billion in tourist revenue in the year
2000.

"We will invest a total of $600 million in the Tourism 21
development programs within the next 5-10 years, not including
what is to be spent by the private sector," Tan added. (vin)