2. Speeches
Mr S Iswaran at the Tourism Destination Investment Conference Asia
16 October 2012
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SPEECH BY MR S ISWARAN, MINISTER, PRIME MINISTER’S OFFICE & SECOND MINISTER FOR HOME AFFAIRS AND TRADE & INDUSTRY AT THE TOURISM DESTINATION INVESTMENT CONFERENCE ASIA ON 16 OCTOBER 2012 AT 8.35AM, MARINA BAY SANDS EXPO AND CONVENTION CENTRE
Distinguished Guests,
Industry partners,
Ladies and Gentlemen,
Good morning.
Introduction
On behalf of the Government and the Singapore Tourism Board (STB), I would like to extend a warm welcome to all of you to this year’s Tourism Destination Investment Conference Asia (TDI Asia).
Growing Opportunities for Investment in Asia
Asia’s emergence as an important growth engine for global tourism has created a wealth of opportunities. Indeed, Asia is set to be the fastest growing region for international tourism over the next two decades.
The latest projections from the United Nations World Tourism Organization or UNWTO show that tourism in Asia will grow between 4 to 6 per cent in 2012, following 2 years of record growth for the region.
The UNWTO Tourism Barometer Report released in September further noted that international arrivals to Asia and the Pacific continued to show resilience, registering a year-on-year growth of 8 per cent. The report also revealed that within Asia, Southeast Asia is poised to be the sub-region with the fastest growth rate, at 9 per cent. So essentially, you are in the right place.
Singapore’s own tourism growth story continues to be promising as well. 2011 was a record year for us with visitor arrivals at 13.2 million - a 13 per cent year-on-year increase - and tourism receipts reaching S$22.3 billion, an 18 per cent increase from the year before. And, we believe that Singapore will be able to continue to harness the growth in intra-Asian tourism demand for Singapore’s benefit and also for the benefit of Southeast Asia.
Our geographic location and cultural proximity and operating context that we find ourselves in, Singapore is well-positioned as well to be a partner for many enterprises in order to explore opportunities in the region. We have built on this foundation by enhancing the visitor and tourism experiences that appeal to growth markets in China, India and ASEAN. And our aim is through continued investments in high-quality tourism products, best-in-class business and leisure events, as well as manpower and capabilities, grow our share of the tourism pie.
Singapore as a strong investment hub
Singapore is well-positioned as a hub from which businesses can explore can explore opportunities in the region. That is true in the context of tourism in particular. There are several factors that can attest to this, not least of which is the fact that we have at least 7,000 multinational companies
based in Singapore. What that means is that we have a corporate environment which lends itself to these collaborations that appeal across different public segments that can work with different kinds of resources in order to explore opportunities. And I think this is an important part of the process in moving forward in the region.
In 2011, the Business Economic Risk Intelligence (BERI) report ranked Singapore as the top city in the world with the best investment potential.
New international hotels properties such as W Singapore Sentosa Cove (Opened 16 September 2012), Mövenpick Heritage Hotel (Heritage Wing to be ready end 2012) and Sofitel So (Opening 1st July 2013) are some examples of recent tourism investments in Singapore. This is coupled with investments in mixed-used developments, such as the two Integrated Resorts by Las Vegas Sands and Genting Group, that also point to an increasing focus on developing integrated experiences for customers.
The Government has also introduced co-investment and seed-funding programmes, such as the SPRING Startup Enterprise Development Scheme and the Business Angels Scheme, to provide a fertile environment where ideas can be seeded and turned into profitable businesses.
Singapore: A Gateway and Living Lab for Tourism Development
We are committed to further developing our tourism sector. To this end, the Government has committed $905 million to the Tourism Development Fund over the next five years to spur such innovations in the sector.
About one third of these funds ($300 million) will be channelled to build on Singapore’s position as an international Lifestyle and Business events hub through the Tourism Events Development Scheme (TEDS). This is an example of how the Government works with the private sector in order to seed new and anchor leisure and lifestyle events in Singapore. It will also anchor best-in-class events, whilst bringing in international conferences and exhibitions. A further $340 million will be set aside to drive new tourism concepts and products, and $265 million will go towards enhancing capabilities in tourism-related enterprises.
The tourism buzz in Singapore stems from the fact that we serve as a living laboratory for ideas. Through experimentation and strategic partnerships, we will continue to identify suitable ideas and collaboration models that leverage on the respective strengths of our public and private sectors to create a superior product. So whether it is at the initial developmental stages, such as the building of essential tourism infrastructure, or the sharing of operating risks to acquire a more sustained partnership, the Government is committed to working with both foreign and local partners to realise the potential of good ideas.
In addition, Singapore has been building a strong pipeline of attractions as part of an on-going effort to add to the diverse offerings and original experiences in our vibrant tourism landscape. This year, we have already witnessed the opening of Gardens by the Bay. Upcoming attractions include the opening of the Giant Panda exhibit by the end of this year, followed by the River Safari in 1Q 2013, the Sports Hub and the National Art Gallery in 2014.
And beyond that, and this is important for an investor’s perspective, STB is working closely with stakeholders and investors to anchor more unique attractions and innovative concepts for 3 new tourism precincts that have been identified: the Jurong Lake District, Mandai, and the Kallang Riverside. These new growth precincts will be developed along the themes of edutainment (combining education and entertainment), biodiversity and leisure-lifestyle respectively. Besides attractions, there will also be a need for other tourism-related infrastructure such as hotels, F&B offerings and retail services. Therefore, I invite all of you and your extended business network to seriously look at all these opportunities and get in touch with STB if you have an innovative tourism concept, big or small, and would like to take it further.
Singapore’s tourism strategy also seeks to forge win-win partnerships with our ASEAN neighbours, and a key example of this is the Cruise industry. We have focused on the Cruise industry as it is one of the fastest growing segments of the travel and leisure sector. Being a network product, it lends itself to collaboration. And there is considerable scope to grow the Asian cruise industry by jointly promoting the islands and rich heritage that the Southeast Asia region has to offer. Singapore’s new Marina Bay Cruise Centre, which will be officially opened next week, represents our commitment to work with our ASEAN partners to create a compelling cruise industry and cruise tourism product in this part of the world. At the Government-Government level, we have been working with our ASEAN partners to build a strong network of cruise destinations with the required infrastructure support. We invite all interested stakeholders to work with STB to take this forward.
TravelRave – A celebration of Asia’s vibrant tourism industry
In line with Singapore’s efforts to stay at the forefront of Asian business exchanges, STB has created TravelRave, Asia’s most influential travel trade festival. This comprehensive regional platform brings business leaders together to discuss potential collaborations that can fuel the growth of Asia’s already vibrant travel and tourism industry.
Under the umbrella of TravelRave, TDI Asia showcases a unique concept in investment conferences, encompassing a broad mix of tourism infrastructure and hotel investment opportunities for the region. And indeed for the next phase of growth in the region, investment in infrastructure is going to be a key enabling factor. TDI Asia will offer the industry insights and opportunities for business growth and development. Through the array of networking sessions, business meetings and site visits, you will be able to find new opportunities and the scope for collaboration for new ventures.
Conclusion
As Singapore continues to strengthen our value proposition as a tourism hub, we are also working to encompass a larger collaboration with our ASEAN neighbours to create a regional hub. We strongly encourage a vibrant and productive exchange at TDI Asia, where new collaborations between international and regional and local tourism businesses can be forged and new ideas created.
I wish all delegates a productive time at TDI Asia. I also wish you all an enjoyable and pleasant stay in Singapore.
UNWTO Tourism Barometer, January 2012
EDB Annual Report 07/08
Business Economic Risk Intelligence (BERI) Report, August 2011
2M’s Committee of Supply Debate speech on 2 Mar 2012.