Sustainability of Growth in Visitor Arrivals into Singapore

Mr Teo Siong Seng asked the Minister for Trade and Industry if he can give an update on the Ministry's plans to sustain the high growth of international visitor arrivals into Singapore over the next 10 years.

Singapore’s tourism sector has undergone a significant transformation over the last decade, with its strongest growth in the last few years. International arrivals reached 13.2 million in 2011, representing a compound annual growth rate (CAGR) of 17% from 2009 to 2011. Over the same period, tourism receipts grew at an even faster CAGR of 33% to reach a record $22.3 billion in 2011.

The sector's strong performance in recent years was due in part to new tourism offerings, such as the Integrated Resorts and the F1 Singapore Grand Prix, as well as a rise in Asian tourism. We were also emerging from a relatively low base following the global financial crisis of 2008/2009.

Looking ahead, global tourism growth is expected to moderate and regional competition will intensify. The sector will also need to manage and sustain its future growth within our domestic manpower and land considerations. Hence, we do not expect growth in international visitor arrivals to continue at the same rapid pace. Therefore, the Singapore Tourism Board (STB) is working with the tourism industry to raise its capability in content creation and manpower development, in order to enhance visitor experience and generate quality, yield-driven tourism growth.

A key thrust is to enhance our tourism "software" through better tourism content and programming. Strong content will help us derive maximum value from our tourism assets, such as the Marina Bay Cruise Centre Singapore and Gardens by the Bay, as well as the upcoming River Safari, Sports Hub and the National Art Gallery. Innovative content will also be a key differentiator to strengthen our position as a vibrant global city.

Building manpower capabilities and enhancing productivity are other important initiatives. STB will continue to focus its efforts on training, skills upgrading and supporting tourism companies in technology adoption and business process improvements. This will help companies in the tourism sector seize growth opportunities up the value chain, and equip their workers to

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provide quality service to our visitors.

STB will continue to develop current tourism source markets while seeking new bright spots in Asia and beyond. STB will also aim to strengthen Singapore's position not just as a tourism destination, but also as a regional travel hub, connecting to other destinations by air and by sea. One example is the cruise industry and the potential for fly-cruise itineraries for tourists to fly to Singapore and spend a few days before seamlessly integrating with the cruise lines using Singapore as a gateway port. Regional tourism collaboration is key to realising this goal, as we work with our ASEAN neighbours to develop a strong regional cruise network.

Together, these key initiatives will help us grow the sector through quality, yield-driven tourism which will generate significant benefits for local enterprises and create good jobs for Singaporeans.