Speech by SMS Chee Hong Tat at Tourism Industry Conference

Distinguished guests,

Ladies and gentlemen,

Introduction

1. Good morning. It is my pleasure to join you here at the Tourism Industry Conference 2019. 

2. At ITB Asia in November last year, I spoke about our strategies to develop the tourism sector, by reinventing our attractions and offerings, attracting new visitor segments and growing value capture, as well as partnering stakeholders for innovation. Chief Executive of STB, Keith Tan, will share more about STB’s plans in these areas during his presentation. 

3. Tourism has contributed around 4% of Singapore’s GDP and provides more than 60,000 jobs within its core industries. Beyond these top-line numbers, let me share some thoughts on the importance of tourism in 3 key areas:

(1) Supporting the growth of our local businesses, both here and abroad
(2) Creating good jobs for Singaporeans; and  
(3) Reinforcing Singapore’s status as a global business hub 

Tourism supports the growth of our local businesses, both here and abroad

4. We have just announced that the two Integrated Resorts (IRs) have committed to investing a total of S$9 bil on their expansion plans, which introduce new world-class attractions and experiences. Many of these will be first-in-Singapore; for instance, Marina Bay Sands (MBS) will introduce a new entertainment arena, while Resorts World Sentosa (RWS) will expand Universal Studios Singapore to include Super Nintendo World and Minion Park. The new investments would benefit Singapore’s tourism industry and further strengthen our position as a global business hub.  It will also create many jobs for Singaporeans and business opportunities for local companies.

5. For example, local SME Diamond Glass which started out as a two-man operation in 2006 has grown in staff strength to 200, to support façade installation and maintenance services for MBS. Another local SME Vismark Food Industries has been able to scale up its capabilities and gain valuable exposure to many exciting collaborations through its nine-year partnership with RWS, as food supplier for its F&B operations. These are just two examples of the many companies that will derive significant spin-off benefits from the IRs. In 2018, 80% of the total contracts awarded by both IRs went to Singapore-based companies, amounting to around S$1.1 bil. This figure is likely to grow as the IRs enter their next phase of development. Likewise, when we organize large events like the F1 race, there are positive spin-offs for local businesses. For the current term of F1, more than 90% of the contracts for race-related works went to local companies. 

6. The IRs’ expansion will contribute to the inflow of visitors looking for new attractions and experiences. With 18.5 mil international visitor arrivals to Singapore last year, tourism presents a good opportunity for our businesses to market their products to the world. For example, in the City Hall area, near where MTI is, we often see tourists flocking to some of our home-grown F&B outlets, like Ya Kun and Song Fa Bak Kut Teh, for a taste of local food. Some visitors enjoy our local food so much that they buy miniature jars of kaya, or pre-packed bak kut teh spices so they can recreate the flavours back home, and share them with friends and family. Tourism thus represents an opportunity for Singapore products to be enjoyed around the world. For companies like Ya Kun and Song Fa, which are expanding in overseas markets, tourism helps build brand familiarity, augmenting their international marketing efforts.  

7. With the global food gift market estimated to reach US$70 bil by 2020, Singapore companies are well-positioned to capture a slice of this business.  Enterprise Singapore (ESG) and the Singapore Food Manufacturers Association (SFMA) launched the Singapore Food Gifts Initiative to promote Singapore food gifts to tourists through dedicated spaces in the transit areas of T1 and T4 of Changi Airport. This created additional opportunities for food manufacturers to develop and showcase new products, spurring business growth. Since its launch in November 2017, sales of the food gifts have reached more than S$3.6 mil. Riding on the success of this model, SFMA and ESG are looking to bring other food manufacturers on board and to replicate it at other venues frequented by tourists. 

8. Another initiative to showcase our local products is STB’s Experience Step-Up Fund (ESF), which supported retailers such as Violet Oon Singapore to develop attractive food souvenirs for tourists at their new Café and Gift Shop concept at ION Orchard. I understand that Violet’s beautifully packaged food gifts have been doing well and this has led to more business from corporate orders. 

9. With the launch of Design Orchard in January this year, we have created a space for our local designers and companies to showcase their merchandise in the heart of Orchard Road, and also to test and launch new retail concepts and products. We intend to grow the product offerings at Design Orchard by bringing on board the DesignSingapore Council, which is now part of the MTI family.  

10. To continue supporting local businesses in their efforts to innovate and grow, I am pleased to announce the launch of the Sentosa x Enterprise by Sentosa Development Corporation (SDC). This is meant to encourage businesses to develop and test new and innovative concepts or lifestyle experiences, using Sentosa as a sandbox.  SDC will share the risk with its business partners by offering space at very affordable rental rates, and provide facilitation support on licensing and regulatory approvals. We hope that through this scheme, Sentosa can provide unique offerings and experiences not found elsewhere in Singapore, to attract more local and foreign visitors to the island.  I encourage everyone here to visit the SDC booth later, to find out more about how you can participate in this scheme.  

Tourism creates good jobs for Singaporeans

11. The diverse sectors in the tourism industry offer good job opportunities that would appeal to Singaporeans with different interests and at different stages of their lives. Singaporeans can find their calling in creative and diverse professions such as tourist guide, designer or event organiser. Our two IRs currently directly employ about 20,000 people.  More than 65% of the workers are locals, including a significant number of PME jobs. When the IRs expand, they will create up to 5,000 new jobs directly, with even more jobs generated from the supporting industries.  

12. Much has been said about the importance of technology in raising productivity levels within our industries. While the government is committed to supporting these productivity efforts within the tourism industry, we recognise that technology alone is not a silver bullet. This is particularly true for the hotel industry, where the human touch remains essential. However, automation and digitalisation can support creation of better jobs, as in the case of Swissotel The Stamford. When I visited them last year, I was glad to see their assisted automated check-in and check-out counters.  It frees up time for staff to focus on engaging customers to increase customer satisfaction. The enhanced job responsibilities have contributed to higher wages and increased job satisfaction levels for Front Office staff, such as Ms Joan Seng, whom I met during my visit.

13. Recently, I also met Mr Stanley Foo and Ms Jasmine Tan on a precinct tour of our Ang Mo Kio heartlands. By using their SkillsFuture credits, they enrolled in a tourist guide course and discovered their passions in guiding, co-founding Oriental Travel and Tours. As part of STB’s Tour Design Challenge, they participated in a series of ideation workshops, site visits and networking sessions to brainstorm and develop new tour product ideas. Their idea subsequently qualified for STB’s ESF funding, which supported the development and marketing of their heartland precinct tour.  

14. Stanley and Jasmine are good examples of how we can work together and leverage the various schemes that we have in place. I am confident that the tourism sector, with its diverse offerings and passion points, will continue to provide many good jobs for Singaporeans.

Tourism reinforces Singapore’s status as a global business hub 

15. The Meetings, Incentives, Conventions and Exhibitions (MICE) sector is a key pillar of our tourism industry. The MICE sector has seen strong growth over the years, and 2018 was a particularly good year. Many of you would recall how Singapore played host to the first Trump-Kim Summit, cementing our place in the history books and showcasing our expertise in organising such high-profile events to the highest standards. Singapore also hosted other key international conferences such as the ASEAN Summit and the Bloomberg New Economy Forum. In addition to benefiting the tourism industry, such events also strengthen our status as a global business hub.  

16. MICE is important to Singapore as it allows us to promote Singapore as a knowledge hub – where new ideas and business networks can be established. Earlier this morning, we had Memorandum of Understanding (MOU) signings between STB and two very good partners – Traveloka from Indonesia and the Alibaba Group from China. When I was talking to the management team from these two companies, one of the things we discussed was how Singapore can be a gateway and a hub to the region. And this is a role that can be reinforced by playing on our strengths in the MICE sector. MICE events also allow us to establish thought leadership, especially within key growth or priority sectors for Singapore, to drive larger business and economic outcomes. An example is the Industrial Transformation Asia Pacific (ITAP)- a Hannover Messe event that welcomed over 15,000 attendees from 55 countries. Through the showcase of cutting-edge Industry 4.0 products, technologies and services, and opportunities for knowledge and technology transfer, the event helped to reinforce Singapore’s reputation as a technology-intensive digital manufacturing hub. 

17. Our local companies and employees also benefit from participation at MICE events through networking and other business opportunities. An example is the Singapore Fintech Festival, a home-grown MICE event that has anchored Singapore as a thought-leader in the fast-growing field of Fintech. The 2018 edition was the biggest gathering of the global Fintech community that drew more than 45,000 participants from over 130 countries, with more than S$16 bil planned investments in ASEAN enterprises over the next three years. So it does not just benefit Singapore, but it benefits the region, using Singapore as a regional hub. 

18. Singapore’s international appeal, strategic location, strong infrastructure and business-friendly environment are among the key factors that have enabled Singapore to consistently maintain its position as a top MICE city and global business hub. We are not taking this for granted and resting on our laurels. It is a process of continuous improvement and rejuvenation. Adding to Singapore’s world-class line-up of iconic lifestyle destinations is Jewel Changi Airport, with over 280 retail stores and eateries, leisure and lifestyle attractions and the world’s tallest indoor waterfall. And there are lights that change colours, making it very attractive. I know many of my residents who have been there told me that when they visit the Jewel, they feel very proud to be Singaporeans because it’s a way for us to showcase to the world and to our own population what Singapore can do when we put our hearts and minds together. Cruise passengers can also look forward to dedicated fly-cruise services, such as integrated ticketing and baggage services and lounge facilities at the Changi Lounge, allowing Singapore to further cement our position as the fly-cruise hub of Asia. It is a seamless process – SATS is the operator so that when you go to Changi Airport, they will provide a seamless process for you to do fly-cruise. 

19. Another iconic destination that comes to mind is the Singapore Zoo, which opened in the 1970s, and has earned its reputation as the ‘Open Concept Zoo’ with innovative concepts to bring people close to wildlife such as the world’s first free-ranging orang-utan habitat. Generations of locals and tourists have enjoyed these attractions over the decades, including myself and my family. My parents used to bring me there, and I brought my children there. Maybe one day I will bring my grandchildren there. I recently visited the zoo again, this time with my residents from Bishan-Toa Payoh GRC.  It was wonderful to see the smiling faces of the children and parents, enjoying the outing together as a family.  

20. Keeping our attractions fresh and exciting is important, and it is timely that Wildlife Reserves Singapore (WRS) will be rejuvenating their three iconic nature attractions, Singapore Zoo, Night Safari and River Safari, so that they retain their appeal for generations to come. This transformation will see animal encounters presented in new ways, adding a digital technology overlay to take guest experience to a new level. The masterplan will complement the upcoming parks in Mandai such as the new Bird Park that will shift from Jurong to Mandai and the Rainforest Park. This will further strengthen Mandai as a key tourism precinct with world class nature-based attractions, and elevate its international standing amongst other competing attractions.
 
21. In line with STB’s strategy to spread out its tourism offerings across different parts of Singapore, we will be launching an Expression of Interest exercise for a new integrated tourism development with attractions, hotel and other complementary lifestyle offerings such as F&B and retail at the Jurong Lake District. With its unique waterfront environment and location adjacent to the new Jurong Lake Gardens and the new Science Centre, we envision this area to be transformed into a key attraction from 2026. The Expression of Interest exercise will close in early November this year, and we look forward to receiving your ideas and proposals.

Conclusion 

22. Ladies and Gentlemen, we have achieved a lot together. Last year, international visitor arrivals and tourism receipts reached new highs for the third consecutive year.  I want to thank our hardworking team from STB, STB’s Board Members for their guidance and support, and also importantly, our partners from the industry for working together with us. But as I mentioned earlier, when we do well, we do not rest on our laurels and we are keen to improve our performance and to enhance our competitiveness through new investments and rejuvenation.  Singapore is not done building and growing our tourism industry.   

23. In line with the theme for this year’s TIC - Building Tourism for the Future – we must ensure that we keep pace with changes in the world, and continue to stay relevant, compelling and attractive. Through new investments and start-ups, as well as rejuvenation here and abroad, there are plenty of opportunities for further growth. This will benefit our businesses and create good jobs for Singaporeans. 

24. Everyone here today has an important role to play. I strongly encourage all of you to continue to transform your businesses, invest in training your staff and deliver high standards of service and customer satisfaction.  We have done well but there’s still room for us to further improve and do even better. We must also stay open to attracting ideas and talent from around the world, and to bring out the best of our local culture and heritage to share with our international visitors when they come to Singapore – a place where dreams become reality and where passion is made possible.  A place where we are proud to call home, and where we create the future together.   

25. I hope we can make use of this platform today to exchange ideas on what the future of tourism looks like, and how we can work towards unlocking exciting opportunities in the industry. 

26. Thank you and I wish you a productive conference.