SMS S Iswaran's reply to Parliament Questions on the dollar spending by the tourism industry

Question No 421 of Notice Paper No 83 of 2010

Name and Constituency of Member of Parliament
Mrs. Mildred Tan, Nominated Member of Parliament.

Question
To ask the Minister for Trade and Industry (a) for the last one year, what is the dollar spending by the tourism industry and tourism receipts generated by visitors; (b) what proportion of this is generated by the recent improvements ranging from the Orchard Road upgrading to the opening of the two IRs; and (c) whether we are on track to achieve the expected $2.7 billion of value-add by the "IR effect".

Answer
2009 was a challenging year for global tourism which was affected by the twin challenges of the economic downturn and the H1N1 virus. Even so, the Singapore tourism industry delivered a creditable performance. Tourism Receipts (TR) for 2009 was S$12.8 billion, and the value-add generated by the sector was an estimated S$7.3 billion.

 
This was possible because of the close collaboration between STB and the industry over the years to develop a diverse offering of world-class tourism products and experiences in Singapore, as well as the special efforts made to boost the tourism industry during the economic downturn.

The Orchard Road mall enhancement, for example, has improved visitors’ shopping experience and was timely in adding more than 100,000 sq. of commercial space along Orchard Road with the opening of 3 new malls. Besides hardware, efforts have also been made to improve our events space and increase Singapore’s mindshare amongst international visitors. This has helped to enhance Singapore’s attractiveness as a top of mind leisure and MICE destination.

In addition, at the onset of the economic downturn, STB introduced the S$90 million BOOST, or Building on Opportunity to Strengthen Tourism, package to cushion the effects of the recession. Some 120 retailers partnered STB to bundle and market promotional deals under the “2009 Reasons to Enjoy Singapore” global campaign. Enhanced support was also given to over 300 events under the Business Events in Singapore (BEiS) scheme, that will generate an additional 1.2 million visitor nights through February 2012.

As a result of these efforts, from 2004 to 2009, the tourism sector value-add increased by close to 30% from S$5.7 billion to S$7.3 billion.

With the opening of the Integrated Resorts (IRs) this year, STB has forecasted record international arrivals of between 11.5 and 12.5 million visitors and S$17.5 to S$18.5 billion in tourism receipts. Already, STB has reported consecutive record highs in monthly visitor arrivals since January this year.

The IRs will directly bring in more than S$12 billion of investment when they are fully completed, and generate new business opportunities for local companies.

In terms of employment, the two IRs already employ close to 16,000 workers directly, accounting for 80% of the 20,000 direct jobs projected when they are fully open. Nonetheless, these are early days and the full economic benefits of the IRs can only be properly assessed and realized when both IRs are fully open and operate at a steady state.

Beyond economic benefits, the developments in Singapore’s tourism sector has enhanced our national branding, sharpened Singapore’s competitive edge for talent, and broadened leisure options for residents. We remain confident that the IRs, together with upcoming offerings such as Gardens by the Bay, the International Cruise Terminal and the River Safari wildlife park, will position Singapore as a leading global city in Asia.