Strategies for Sustainable Visitor Growth:

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Abstract Singapore achieved a phenomenal growth in visitor arrivals for a period slightly more than three decades. There has been an almost uninterrupted growth since 1965 when it recorded merely 98,000 annual arrivals. Singapore visitor arrivals passed the 3 million mark in 1985 and the 5 million visitor mark in 1990. The number of visitor arrivals reached 7.2 million in 1997. Singapore, a small island nation, has seen a meteoric rise from a humble beginning as a swampy fishing village to a position of the commercial centre of the region and the top convention city in Asia. Singapore s unique geographic location enables the island to be developed as the hub of international air traffic. It has a celebrated international airport and the much admired Singapore Airlines. It has a string of award winning world class hotels for demanding holiday makers as well as business travellers. The green and clean garden city fame, shopping paradise, tourist attractions, and theme parks are additional attributes to the surprising Singapore that attract visitors. This study describes the underlying strategies for visitor growth in Singapore. Leong Choon Chiang is an Associate Professor at the Nanyang Business School, Nanyang Technological University, Singapore. Strategies for Sustainable Visitor Growth: A case study Introduction Leong Choon Chiang Singapore, a small island nation located at the southern tip of Southeast Asia peninsular, has seen a meteoric rise from her humble beginning as a swampy fishing village to a position of the commercial centre of the region and the top convention city in Asia. Singapore s unique geographic location enables the island to be developed as the hub of international air traffic. It has a long celebrated top international airport in the world and the much admired Singapore Airlines. It has a string of award winning world class hotels for choice of demanding holiday makers as well as business travellers. Tourism is an integral part of Singapore life. Visitors, come by the millions each year, are being charmed by the most modern city in the region and the unique blend of east and west cultures. The green and clean garden city fame, shopping paradise, tourist attractions, and theme parks are additional attributes to the surprising Singapore that attract visitors. Sustainable visitor growth Singapore achieved a phenomenal growth in visitor arrivals during the past three decades. There has been an almost uninterrupted growth since 1965 when it recorded merely 98,000 annual arrivals. Singapore visitor arrivals passed 3 million marks in 1985 and the 5 million visitor marks in 1990. Singapore received 6,425,778 visitor arrivals in 1993. The figures represent more than a 100 percent increase over a short period of 8 years since 1985. The number of annual visitor arrivals is remarkable as it is more than double the total population of the island nation. In 1997, the number of visitor arrivals reached 7.2 million. Table 1 shows the annual visitor arrivals in Singapore from 1975 to 1997. In addition to its various activities in tourist promotion, for many years, the Singapore Tourism Board (STB) conducts an annual survey of overseas visitors to Singapore. The survey c o n t a i n s 18 THE JOURNAL OF TOURISM STUDIES Vol. 10, No. 1, MAY 99

Tree Act, 1975 under the operation of Ministry of Environment spearheaded in achieving a clean and green environment goal nationwide. Under the Act, all land development is required to provide landscaping, tree growing and its maintenance on the site. Mature trees in good condition are to be preserved and the landowner is responsible for maintaining a green and clean environment on his land. An annual budget of about $74 million was set aside for the operations and development of the parks and greenery on the island in 1995. Strategies for growth Tourist destination positioning The market positioning of Singapore as a tourist destination evolved over more than three decades. In the late fifties, it was noted that Singapore had only three attractions to offer visitors, namely, swamplands, some fine buildings, and the death houses of Sago Lane. It Table 3: List of Hotel Projects Through Land Sales by the Urban Redevelopment Authority and Other Agency. Year of Land Sales Hotel Projects URA Land Others 1967 Mirama, The Plaza, Apollo, King s 1977 Grand Central, New Otani, Regent 1979 Le Meridien, Amara, Marina Mandarin, Pan Pacific, Oriental, Furama, Excelsior 1980 Meridien Changi, Concorde, Holiday Inn Parkview, Golden Landmark 1981 Millenia 1983 King s Centre was more a place for tourists in transit to destinations than a destination by itself. In the early sixties, Singapore became a "Shoppers Paradise" as a result of relentless efforts of the Singapore Tourist Association who lobbied for Sunday trading of shops and the emergence of first officially trained guides. The Ministry of Culture chipped in with a filmlet "Singapore Stopover" and welcomed visitors by lion dancers at the airport and dockside. In 1963, the Tourist Promotion Board Act was passed and it empowered the newly created Board to collect Cess from occupied rooms in tourist hotels and to develop and promote tourism. The government gave approval for four luxury hotels in the Tanglin and Orchard Road area, a decision which led to the expansion of Singapore s nowfamous "Tourist Belt". A campaign to keep our city clean had done much to improve the country s appearance and more courteous shopkeepers, taxi 1990 Intercontinental, Albert Court Trader s Hotel (STPB) 1993 Grand Plaza, Merchant Resort Hotel (Sentosa Corp.) Court, Bras Basah, Ponggol 1994 Bencoolen Geylang/Joo Chiat Hotel (Housing & Development Board) Source: Urban Redevelopment Authority, 1995. drivers and waitresses were evident. By 1971, the GI from Vietnam War was disappearing from other Asian locations and the British troops simultaneously withdrew from Singapore. A contribution of US$25 million a year from the GI and 15 percent to Singapore s GNP from the British troops disappeared along with some 40,000 jobs. The circumstances did not deter the government s firm commitment to tourism development. STPB and the Ministry of Finance soon launched a plan to prolong the stay of visitors and announced a budget of S$124 million to create "Sentosa Island". During the decade, STB s "Instant Asia" cultural shows highlighted the country s unique multi-cultural heritage. Historical sites were being preserved. New attractions were developed including a world-class open zoo, the Jurong Bird P ark, the Chinese and Japanese Gardens, the Singapore Handicraft Centre and Rasa Singapura food centre. By the early eighties, Singapore was positioned as "Most Surprising Tropical Island" or "Surprising Singapore". The skyline was dominated by massive new hotel projects at Raffles City and the Marina Square. The Dynasty Hotel surprised visitors with Chinese architecture and decorated with massive carved wooden panels. In 1986, the government allocated S$1 billion to STB s Product Development Division for tourism product development. The development plan called for the conservation and revitalization of historical sites such as China Town, Tanjong Pagar, Little India, Kampong Glam, Boat and Clark Quays, and the recreation of Bugis Street; the upgrading of Raffles Hotel; the development of resorts on Sentosa Island and Lazarus Island, and the redevelopment of Fort Canning Park and Haw Par Villa. THE JOURNAL OF TOURISM STUDIES Vol. 10, No. 1, MAY 99 21

T he openings of Changi International Airport Terminal I in 1981 and Terminal II in 1990 provided greater accessibility to international visitors to visit t h e island destination and its neighbouring countries. Changi Airport soon became the world s best and the most popular airport. The development of Singapore Airline to become a world premier air carrier has enhanced the position of Singapore as an aviation hub a n d international tourist destination. Strategic Plan for Growth The World Tourism Organization (WTO) predicts that worldwide arrivals will increase from 449 million in 1991 to 637 million in 2000. The share of arrivals for Strategic planning for Singapore has to consider major emerging regional competitors. Asia Pacific will increase from 11 percent to 18 percent during the period and it will be the fastest growing region in generating and receiving arrivals. Visitor arrivals to East Asia and the Pacific will reach 101 million by 2000 and 190 million by the year 2010. Regional competition will intensify as other destinations in Asia become more aggressive in marketing and promotion. International tourist markets such as Europe and North America will be attracted to the newly opened Eastern European countries. Operation cost will rise in Singapore as competition for land and human resources becomes more intensive with economic growth. Likewise, the strong Singapore dollar makes shopping unattractive to many tourists. In the light of such opportunities and challenges, the STPB has mapped out the following strategies (contained in the Strategic Plan for Growth from 1993 to 1995): (a) increase market share in existing markets; (b) forge strategic alliances with airlines in new routes, collaboration with other countries such as ASEAN and national travel organisations as well as with industry members like the Singapore Hotel Association (SHA), National Association of Travel Agents of Singapore (NATAS), Singapore Retailers Association, and Registered Tourist Guides Association of Singapore; (c) capture niche market segments such as cruises, family travel and other special interest groups; (d) tap new markets, including China, Eastern Europe, South Africa and Latin America; (e) intensify promotion; convention (f) develop world class events; (g) new direction in product development as in four focal zones (Civic District, Singapore River, Orchard Spring and Southern Island) and 11 tourism themes; and, (h) improving services in terms of work force, STPB service to industry, rewarding performers, protecting visitors and educating Singaporeans on the importance of tourism to the economy. Niche markets include catering to special events, study missions like ecotourism, sport and leisure like jetset golfers and tapping the youth travel market in educational and cross country exposure trips. Greater sensitivity or attention can be 22 THE JOURNAL OF TOURISM STUDIES Vol. 10, No. 1, MAY 99

paid to other special groups like those on honeymoon, those in Singapore for medical and dental treatment or the more elderly, "silver" visitors (STPB, 1993). Tourism Unlimited In 1994, STB renewed its stewardship with the present Chief Executive on its helm. The unique concept of tourism unlimited has been mooted as a paradigm shift to sustain the long-term growth of the tourism industry. Tourism has been redefined as to meet the anticipated great leap in tourism business growth in East Asia and the Pacific region. In July 1996, STB unfolded a comprehensive tourism master plan expanding a clear vision and formulating the six strategic thrusts in per form anc e, wi ll depend largely upon the qualities, knowledge, and skills that managers will be able to bring to their business. In the past, hospitality and tourism management has been characterised by a lack of sophistication, imposed by manmanagement approaches to operational circumstances. Practices which are commonplace in other economic sectors are underdeveloped in many hospitality and tourist businesses. Hospitality and tourism education at the degree level is emerging in local institutions of higher learning. Educators have a role to play here in developing managers, and in partnership with industry, working to For Singapore tourism has been re-defined to meet anticipated regional business growth. world is still being put into place (Cooper, Fletcher, Gilbert & Wanhill, 1993). It is only in recent years that governments have recognised the value of hospitality and tourist industries to their economies, and in particular have linked manpower planning and education for tourism with competitiveness and productivity. No doubt there is a pressing need for the hospitality and tourism industries to build a competent tourism work for ce, an independent tertiary institution dedicated to providing degree programmes in hospitality and tourism must be established urgently. A recent survey conducted on more than 300 business undergraduates indicated that slightly more than two thirds of the respondents expressed their interest in enrolling in a local hospitality and tourism degree program, if it was available (Leong, 1996b). Future challenge preparation for Singapore tourism to enter into the next millennium. The plan is dubbed as Tourism 21, Vision of Tourism Capital (STPB, 1996b). The STB will undertake the overall champion for the tourism industry. With a S$300 million budget committed for marketing purposes over the next five years from 1997, an array of six specific thrusts in destination marketing would reposition the image of Singapore as a tourism capital in the 21st Century. Tourism education and training The hospitality and tourist industries are facing waves of change in env iron men tal factors, industry restructuring, an d more c ompetition both loc ally and internationally. T h e ability to overcome these challenges and succeed in future overcome the managerial manpower shortage problems in the hospitality and tourism industries. A high quality hospitality workforce can be achieved only through high standards of hospitality education and training. Traditional domain of education has been the encouragement of analytical thinking and the under standing of conceptual issues in order to contribute to the professional and intellectual development of a person. Hospitality education and training, on the other hand, is concerned with entrepreunership and delivering pr actical knowledge and techniques. Ironically, aside from a handful of institutions worldwide, most hospitality and tourism education cour ses are a product of the 1980s and 1990s. The infrastructure of hospitality and tourism education around the Several major issues are evident in making tourist growth sustainable in Singapore. The important ones are in respect of Singapore becoming a mature destination in product life cycle, the dilemma of providing more budget accommodation to attract gr eater numbers of tourist arrivals. These issues are deliberated in further depth as follows. Mature tourist destination In the last three decades, Singapore as a tourist destination has gone through the introduction and growth stages in product life cycle. It appears that the product has come of age and is entering into maturity. Growth in tourist arrivals will soon diminish as, among other factors, Singapore is constraint by limited land resources. Carrying capacity for tourists is reaching saturation. Further development of hotels, attractions, or other tourist THE JOURNAL OF TOURISM STUDIES Vol. 10, No. 1, MAY 99 23

facilities on the island will have to compete for land with other high yield development and human space. More importantly, the objectives of the destination development plan must be reviewed and updated with a new vision. The development plan must take into consideration the impact of tourism on the host community, the environment, and the economy. New development projects are not only evaluated on financial basis, but also take into account of social costs and benefits. Too much emphasis has been placed upon physical development. In other words, this has been a product-oriented tourism development without proper consideration of returns to capital investment, opportunity costs, and effects on the environment in the long-term. establishments such as boutique hotels or the like must therefore be encouraged and sustained in Singapore. Such establishments can enhance new niches in educational tourism, business executives and long term stayers. Such accommodation establishments must be managed with green mission and encouraged to offer diversity and range in price, facilities, and services. Budget accommodation Demand for hotels and other paid accommodation is to a certain extent, induced by supply as in price and location factors, making it imperative for the planner and marketer to develop and promote the industry ahead more carefully. Both the supply of and demand for accommodation establishments can be moulded by supporting, complementing infrastructure which can enhance non-price factors such as accessibility, attractive environmental setting and other locational advantages. As the Orchard Road tourist belt has reached the maturity stage and become too congested with vehicular and pedestrian traffics, alternative sites should be develop ed. Again, project assessment emphasised on market demand as well as societal impact is recommended. An appropriate mix of paid accommodation is vital for competitiveness and diversity of the tourist industry and nongazetted accommodation establishments play an important role. Bud get acc ommodation References Chan, M.W., Eoon, H.E. & Tan, M.C. (1996). Hotel investments in S i n g a p o r e. MBA Dissertation, Nanyang Business School, Nanyang Technological University. Cooper, C., Fletcher, J., Gilbert, D., & Wanhill, S. (1993). Tourism principles & practice. Pitman Publishing. Lee, W.K., Ghosh, B.C., & Oliga, J. (1988). Strategies for hotels in S i n g a p o r e, ENDEC Practice Monograph No. 2, Nanyang Technological Institute. Leong, C.C. (1996a). Marketing hospitality in Singapore. In I. McGovern (Ed.) Marketing: A Southeast Asian perspective. Addison-Wesley Publishing Co. Leong, C.C. (1996b). Market demand for hospitality and tourism Management Degree Program in Singapore. In Proceedings of Academy of International Business South-East Asia Regional Conference, 17-20 June 1996 (pp. 500-506). University of Otago. Singapore Tourist Promotion Board (1998.) Singapore Annual Report on Tourism Statistics 1997. Singapore: STPB. Singapore Tourist Promotion Board (1993). Strategic Plan for Growth 1993-1995. Singapore: STPB. Singapore Tourist Promotion Board (1995). STPB Year Book 1993-1994. Singapore: STPB. Singapore Tourist Promotion Board (1996a). STPB Year Book 1994-1995. Singapore: STPB. Singapore Tourist Promotion Board (1996b). Tourism 21: Vision of a Tourism Capital. Singapore: STPB. Urban Redevelopment Authority (1995). Changing the face of Singapore. URA. 24 THE JOURNAL OF TOURISM STUDIES Vol. 10, No. 1, MAY 99