Mr S Iswaran at the STB Tourism Industry Conference

CLOSING ADDRESS BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE AND INDUSTRY, AT THE STB TOURISM INDUSTRY CONFERENCE (TIC) “SEIZING OPPORTUNITIES, BUILDING THE FUTURE” AT SUNTEC SINGAPORE INTERNATIONAL CONVENTION & EXHIBITION CENTRE, BALLROOM 2 ON WEDNESDAY, 11 FEBRUARY 2009

Ladies and Gentlemen,

Good morning.

1. I am pleased to join you today at this year’s Tourism Industry Conference.It is apposite and encouraging that many of our valued industry partners have come together, at this juncture, to discuss the tourism outlook, landscape and opportunities.

A Challenging Environment

2. 2009 will be a challenging year for the global travel industry.The UNWTO has projected that global travel will either remain flat or decline by 2%.

3. The global economic downturn inevitably will impair the strong tourism growth that Singapore has enjoyed in recent years.In 2008, we had about 10.1 million visitor arrivals.This was 2% less than the 10.3 million achieved in 2007, although tourism receipts had risen by 5% to $14.8 billion.STB forecasts that in 2009 visitor arrivals will decline, to between 9 and 9.5 million, and tourism receipts will be lower, in the range of $12 to 12.5 billion.Other regional economies expect a comparable decline.

4. The outlook may be sobering but the industry has weathered tougher times than this. You will recall that the situation was significantly worse in 2003 when the SARS epidemic resulted in a 19% year-on-year decline in visitor arrivals[1]. Hotel occupancy dipped to as low as 20% at one point.The industry and Government rose to that challenge and worked hand in hand to overcome the crisis. We emerged stronger, with visitor arrivals rebounding by 36% in 2004, and registering 8% to 9% growth in 2005 and 2006 respectively.

Responding from a Position of Strength

5. We now need a similar stout-hearted response – one that is concerted, involving all stakeholders, and focused, on developing niche opportunities in the short term, while building for the long term.Yes, perhaps, the present challenge is somewhat more daunting given the severity and global nature of this downturn that has affected all sectors. Yet, equally, our tourism industry faces this challenge from a position of strength.

6. 2008 was, in fact, a record year for tourism spending which hit a high of $14.8 billion. Notwithstanding the dip in visitor arrivals, those who came, spent more.Our efforts to reposition Singapore’s tourism brand and value proposition, as well as our continued investments in infrastructure and capability development, are yielding dividends and will continue to do so.

7. For example, our successful hosting of the inaugural Formula 1 night race captured the attention of the world, the international media and 110 million television viewers.It injected buzz and vibrancy, and positioned Singapore as a premier lifestyle destination.The International Herald Tribune, for example, commented that Singapore was a potential competitor to Monaco as the “crown jewel of F1”.

8. Going forward, we have a strong pipeline of projects to deepen and broaden Singapore’s appeal to visitors.The Integrated Resorts in MarinaBay and Sentosa, the new International Cruise Terminal in Marina South, the River Safari in Mandai, as well as the Gardens by the Bay Project, are all scheduled for completion in the near future.

Government initiatives for tourism

9. We must fully leverage upon these strengths by pressing on with efforts to build our capabilities and seek out opportunities even in the current environment. We should do so in the knowledge that we will be even more competitive when the upturn comes, with a wider suite of attractions to further enhance Singapore’s appeal to visitors.

10. On Monday, as part of this effort, I announced in Parliament that STB will be committing $90 million to the tourism industry in Singapore through a new programme, BOOST - Building On Opportunities to Strengthen Tourism.STB has shared the details of this package with you this morning.

11. Complementing the $90 million BOOST package, is CAAS’ $130 million Air Hub Development Fund, which will strengthen Singapore’s lead in air connectivity. SPRING has also introduced a $100 million GEMS-Plus Programme, which the industry can tap on to enhance capabilities within the service sector. All of these initiatives are in addition to the broadbased $20.5 billion Resilience Package in the Budget.

12. Beyond these schemes, we are also working closely with our ASEAN counterparts to promote intra-regional travel.At the ASEAN Tourism Forum held in Hanoi last month, Ministers agreed that member countries would work together to promote travel to, as well as within, the region. ASEAN tourism officials have been exploring ways to partner private sector players to develop cost-competitive tour packages targeted at intra-ASEAN travellers.Details of this campaign will be released soon.

Call to Action – “2009 Reasons to enjoy Singapore”

13. Today, we embark on another important initiative with the launch of “2009 Reasons to enjoy Singapore”.

14. It is an important marketing campaign.But, beyond that, it is envisioned as a platform for the private sector and government agencies to collaborate closely and to generate new ideas.And, above all, it is a call for action to all stakeholders to work towards our common goal of sustaining the momentum in our tourism industry, despite the challenges that lie ahead.

15. I am happy to note that the campaign itself was a collective effort developed in close consultation with STB’s industry partners - such as the Singapore Hotel Association, Association of Singapore Attractions, National Association of Travel Agents Singapore, and Singapore Retailers’ Association.It involves players from all segments of the tourism value chain, from airlines to hotels, attraction operators to retailers, all of whom have a vested interest and resolute commitment to make Singapore a compelling tourist destination.

16. “2009 reasons to enjoy Singapore” is a year-long campaign aimed at offering visitors attractive travel packages and promotions to visit Singapore. Businesses should take full advantage of STB’s extensive global reach, and benefit from cost-sharing in advertising and promotion. More importantly, I hope that this effort, which brings together all stakeholders, will serve as a wellspring of new ideas and initiatives.

Conclusion

17. 2009 calls for renewed vigour and collective resolve in our tourism industry’s efforts to overcome the clear and present challenges.I, therefore, urge all of you to take the opportunity of this afternoon’s sessions to share your ideas, propose action steps and build partnerships, so that this campaign will stand as a tribute to the resilience and tenacity of the tourism industry in Singapore.I wish you all a productive conference.

[1]Visitor arrivals were 6.1 million in 2003.