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Chapter IV - Singapore’s City Branding Policy
Affected by global situations such as the Asian Financial Crisis, the 9/11 terrorist attack, and the SARS outbreak, Singapore faced a setback in the tourism industry from the 1990s to the early 2000s. Singapore knows that its tourism industry became significant to the economy and would become more critical in the future. However, their image in the early 2000s was more as a city for business rather than a city for leisurely travel. Data shows that hotel occupancy rates on weekdays were higher than on weekends (Centre of Liveable Cities, 2015), and this is probably one of the reasons why the global situation affected them severely.
Figure 8: Singapore International Visitor Arrivals 2008 - 2017
Source:
Singapore Tourism Board. “Annual Report On Tourism Statistics 2012”. Industry Research Department, 2013.
Singapore Tourism Board. “Annual Report On Tourism Statistics 2018”. Industry Research Department, 2019.
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Figure 9: Singapore International Tourism Receipts (Million SGD) 2008 - 2017
Source:
Singapore Tourism Board. “Annual Report On Tourism Statistics 2012”. Industry Research Department, 2013.
Singapore Tourism Board. “Annual Report On Tourism Statistics 2018”. Industry Research Department, 2019.
Figure 10: Singapore International Tourism Receipts per Capita Expenditure 2008 - 2017
Source:
Singapore Tourism Board. “Annual Report On Tourism Statistics 2012”. Industry Research Department, 2013.
Singapore Tourism Board. “Annual Report On Tourism Statistics 2018”. Industry Research Department, 2019.
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Table 8: Singapore International Tourism Average Length of Stay 2008 - 2017
Year Average
Length of Stay
2008 4
2009 4
2010 3.9
2011 3.7
2012 3.5
2013 3.5
2014 3.7
2015 3.6
2016 3.4
2017 3.4
Source:
Singapore Tourism Board. “Annual Report On Tourism Statistics 2012”. Industry Research Department, 2013.
Singapore Tourism Board. “Annual Report On Tourism Statistics 2018”. Industry Research Department, 2019.
Figure 8 above shows international visitors arrivals to Singapore from 2008 to 2017. It illustrates that even though there was an upward trend, the numbers decreased in 2009 and 2014.
Figures 9 and 10 show that international receipts dropped in 2009 and 2015. Table 8 reveals that the average length of stay of international tourist also declined every year. On the other hand, the data shows that 2010 and 2016 are remarkable years for the Singapore tourism industry because of the significant growth in international visitor arrivals, international tourism receipts, and international tourism receipts per capita expenditure. The trend of international tourism receipts per capita expenditure seems not to be much different within a decade. However, the summary of international tourism receipts in 2016 and 2017 presents the impressive growth which may be because of the support from visitor arrivals on those particular years. Besides, results of 2017 in international visitor arrivals and international receipts are the highest on record.
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The decline of international visitor arrivals in 2009 is somewhat under Singapore’s expectation. As per Aw Kah Peng, chief executive of STB at that time, at a speech he gave during the opening session of STB Tourism Industry Conference 2009 that the year started with a global economic crisis that Singapore tourism could not avoid. This sign had started since the second half of 2008. STB forecasted that Singapore would welcome only about 9 - 9.5 million international visitors on that year (Peng, 2009). Though the STB Tourism Industry Conference 2014 was expecting more growth following the trend of previous years (Yeo, 2014), they instead had been challenged by the global economic crisis together with the unfortunate airline accident in the region (Shew, 2016).
The scale of Singapore tourism management is smaller than Thailand. Since it is a city-state, there is no separation between national and local government. Aiming to study Singapore’s tourism policy, this chapter would combine the national and local level of analysis, then discuss NGOs and the public image of Singapore at the end.
National & Local Level
The Ministry of Trade and Industry (MTI) takes care of the Singapore tourism industry and STB. Established in March 1979 (National Library Board, 2014), MTI has duties on promoting Singapore’s economic growth (Ministry of Trade and Industry, N.D.) This means that Singapore saw its tourism industry as an essential industry driving its economic growth.
The most important tourism-related law in Singapore is the Singapore Tourism Board Act, which was first enacted in 1963. After many amendments in 1997, 2002, 2004, 2011, 2014, and 2018, the current version is about the establishment of STB, STB’s management, STB’s funding, duties, and powers, tourist guides, power of inspecting officers, and miscellaneous. Part III, Section 7 sets the functions of STB to develop and promote Singapore as a tourist destination, to advise the government on tourism-related issues, to enhance Singapore tourism industries, to exercise tourism licensing and regulatory function, and to take charge of other functions that may be assigned by the government (Singapore Statutes Online, 1997). Following its first function specified on the act, STB could be seen as the DMO of Singapore.
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Reviewing Singapore’s tourism policy between the years 2008 and 2018 can be done by researching STB’s documents such as speeches in STB’s Tourism Industry Conference each year, STB annual reports, and the STB Tourism Industry Conference Discussion Paper, which was only available for 2013.
Tourism Industry Conference Discussion Paper 2013
The most explicit document showing directions of Singapore tourism policy is the Tourism Industry Conference Discussion Paper 2013. It focuses on the medium-term planning of tourism outline and STB’s strategies. This paper analyzed the salient trends that might affect Singapore tourism environment, including the increase of sophisticated tourists, higher competition in the region, slower workforce growth, and the close relation between visitor’s economy and local people. Pursuing tourism growth within the region has been very intensely competitive, and Singapore did not expect to succeed the year before the plan. However, it plans to become a ‘Quality Tourism’ destination underneath three key dimensions:
1. Singapore remains developing tourism industry as it is an important economic driver that contributes to better overall GDP
2. The tourism industry must be treated as productive and innovative industries that create good jobs in Singapore
3. Public engagement maintains its significant status to tourism development efforts
Following the critical dimensions, it set four areas of strategy to approach the goal of becoming a quality tourism destination.
1. Pursuing a yield-driven marketing approach 2. Enhancing destination attractiveness
3. Supporting industry competitiveness 4. Building local engagement
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The First Area: Pursuing a Yield-driven Marketing Approach
This area can be divided into four approaches: portfolio management, distinguished leisure tourism, visitor-centric approach, and partnership-oriented stance.
The first approach, portfolio management, means Singapore manages its segments and markets in the tourism industry in which areas it can influence as follows:
1. Leisure Segment - Singapore focuses on the Asian market due to its growth and its potential. While for Europe and Oceania, Singapore will try to promote itself as one of the must-visits in a multi-destination trip.
2. Business Segment - By pushing Singapore to become a place where ‘business can be mixed with leisure’, this can facilitate the investment and the spending of visitors.
3. MICE Segment - Singapore remains its position in Asia market for being the leading business events destination.
4. Healthcare Segment - Singapore develops private healthcare and specialist outpatient services.
The second approach, the leisure segment plays a crucial role and contributes the most to tourism receipts. It can be distinguished from others and approached by a different methodology.
Markets will be grouped by manners which STB should adopt as shown below.
1. Protect the Base - To protect the cluster that makes a significant impact on tourism receipt such as China or Indonesia, Singapore will maintain these relations by using different approaches based on their expectations.
2. Invest the Growth - The second cluster that has the potential to grow is Japan and Vietnam. Singapore will increase investment on this cluster, expecting the result from their growing receipts.
3. Pursue niche Opportunity - This cluster has niche needs that Singapore has the potential to serve well, which are Gulf States and Russia.
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The third approach is a visitor-centric approach, which focuses on the target audience. In the case of the tourism industry, this can be seen as visitors or tourists. If Singapore could find out how to provide visitors with better travel experience until it meets their level of needs, the reward is higher spending. Each group of visitors have different needs and expectations, and marketing should send “the right message at the right time” to each of them, for example, a study found that the Indian visitors come to Singapore were driven by needs to enrich themselves and to strengthen their family’s bond. Thus, STB communicated to them through the campaign The Holiday You Take Home with You to show them what Singapore can offer to them during the trip.
Photo 3: The Campaign “The Holiday You Take Home with You” from STB to Indian visitors
Source: Maity, Ritam. “The Holiday You Take Home With You.” Travel News Digest, 5 May 2014, www.travelnewsdigest.in/2014/05/singapore-tourism-launches-fourth-phase-marketing-campaign-india/.
The last approach within the first area is apartnership-oriented stance. This strategy does not only help Singapore to have a strong partnership, but its partner can also help them to understand and develop tourism products to meet the visitors’ needs. For example, STB’s partner in Japan helped it enhancing the result of work by using common strategies. By sharing collective insights from the consumers, they managed to develop a tailored-made tour plan that reflects the tourist needs. Also, the cooperation with Mastercard,Priceless Singapore campaign, crossed the tourism border. It communicated the promotion of Singapore as well as enhanced Singapore to be one of the leading international cities.
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The Second Area: Enhancing Destination Attractiveness
Due to intense competition in the international tourism industry within the region, Singapore reinforced its competitive potential by distinguishing itself from other destinations in two domains.
1. Hardware
a. New leisure zones and attraction
Singapore was introducing new leisure infrastructure such as Gardens by the Bay, ArtScience Museum, Universal Studios Singapore, etc. These are exclusiveness that draws tourists to Singapore. To remain the status of Singapore, there are upcoming projects such as the second phase of Gardens by the Bay, the Jurong Lake District, and Bandai area. Singapore government also provides the Tourism Product Development Fund to the private sector that intends to create a new tourism product or reinvent itself.
b. MICE venues
To be the leader in MICE infrastructure, STB works closely with the industry to develop MICE venues to have the flexible meeting space, variety of food, drinks, and entertainment options, and high-quality services as the clients expecting.
2. Software
a. Precincts
Singapore has various kinds of precincts representing different dimensions of the city, such as Chinatown and Little India shows tourists the heritage and culture, Bras Basah and Bugis offers tourists the modern lifestyle experience. STB works closely to the stakeholders and associations in such areas to help them develop better experiences as tourism products. To
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illustrate, STB collaboratively works with the Chinatown Business Association to establish the Chinatown Visitor Centre.
b. Attractions
Even though tourist attractions are not under STB’s power, by working with the Association of Singapore Attractions (ASA) and the Workforce Development Agency, they start the project to enhance the abilities of local entrepreneurs. The important part is to encourage the entrepreneurs to diversify their income, not to be dependent only on the ticket sale.
c. Arts and Entertainment
STB does not only attracting the global arts and entertainment leaders to Singapore, but it also supports Singaporean artists and brand makers to produce unique content.
d. Sports
Singapore has been organizing the Singtel Formula One Singapore Grand Prix for many years. Also, the Singapore Sports Hub that opened in 2014 contains the world-class sports facilities and increases the opportunity for Singapore to welcome more international major sports events and bring about sports tourism.
e. Retail
Singapore’s retail industry is vast; there are various kinds of shopping experiences from luxury brands in shopping malls to the local stores and street vendors. STB must maintain the excitement and uniqueness of the shopping experience in Singapore.
f. Dining
STB seeks to make Singapore become the leader of a dining destination in the region. The approaches included holding the events Asia’s 50 Best Restaurant and the World Street Food Congress, and collaborating with the top culinary institutions to develop the quality of the dining industry of Singapore.
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g. Business Travel and Events
Singapore was in a good position of business travel. This industry has a significant growth potential due to Singapore’s strengths in design, media, digital content, urban solution, etc.
h. Cruise
Singapore’s cruise was growing doubled following the opening of the Marina Bay Cruise Centre Singapore (MBCCS). Also, the Cruise Development Fund plays a crucial role in helping the stakeholders develop their services.
The Third Area: Supporting Industry Competitiveness
STB has been aware that tourism development is not only for enhancing Singapore as a quality destination, but the international sphere also compels Singapore to push itself to become more competitive, innovative, and productive. In this sense, STB would support the industry as follows:
1. Building Workforce Capacity and Capability
STB would work with stakeholders to develop skilled workers and potential leaders. There was a program called “Training Industry Professional in Tourism Scheme” to help entrepreneurs in developing their employees.
2. Encourage Innovation in Business Model
Nowadays, the tourism industry has been changed rapidly. Together with the technology disruption, an innovation in the business is necessary. STB offers the
“Business Improvement Fund” to the stakeholders to keep themselves updated and stay relevant.
3. Adopting the Use of Technology
Compared to other parts of Singapore society, the adoption of technology within the tourism industry was still low. STB develops the “Tourism Technology Fund”
to promote and encourage the adoption of technology in the tourism sector.
4. Enhancing Service Capability
STB had been supporting the “Go the Extra Mile for Service”, the multi-agency
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initiative aims to uphold the service sector’s development. Also, the “Singapore Experience Awards” encourages the stakeholders to keep developing themselves on providing the best experiences to tourists.
5. Providing a Pro-business Regulatory Framework
STB reviewed the Travel Agent Act and Regulations, and Tourist Guide Regulation to verify that the tourism industry would be ready to take care of the sophisticated tourists.
The Fourth Area: Building Local Engagement
STB promotes public engagement on two levels. The basic level is that STB cooperates with local entrepreneurs and stakeholders, as shown in the previous area. This helps Singapore’s tourism industry to develop together with the community’s needs. Next, the broader level, there is a similarity in both tourist and local people’s images that Singapore is very international and modern. Its local people indirectly promoted Singapore to their overseas friends or family. Also, new technology allows people to engage with others and share their extraordinary experiences online, making it even more accessible. STB can use this opportunity to employ local opinion to be a part of its tourism development (Singapore Tourism Board, 2013 b).
The collaboration between government and private stakeholders is obviously strong through the annual meetings that produce the direction plan of Singapore’s tourism industry.
Besides, the research found that Singapore employs both policymaking and marketing planning to its tourism development. Two mechanisms are blended together and presented by the Tourism Industry Conference Discussion Paper 2013. It is difficult to make an in-depth analysis when STB does not provide the access to older document and other Tourism Industry Conference discussion papers. Notwithstanding the document issue, there are some evidences showing tourism activities in Singapore seem to follow what was discussed in 2013 meeting. By 2018, the Singapore government has already presented new projects following the plan from 2013. Those include the campaign Passion Made Possible. This campaign is the collaboration of STB and the Ministry of Communications and Information (MCI). Launched on 24 August 2017, it sorts
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Socialisers, Action Seekers, Culture Shapers, and Progressors. Not only does it communicate to an international audience, but this campaign also offer each tribe of tourists 24 Passion Tours which STB works with local tour companies to create the special tour to meet tourists needs.
Besides, STB proceeds the partnership with several associations such as some local hotels, entertainment industry, Changi Airport, Singapore Airlines, Micheline's Star, Tencent, Kakao, or Grab to advocate the campaign in every dimension (Singapore Tourism Board, 2018; Singapore Tourism Board, 2019).
NGOs Level
Singapore is famous for its effective government. On the other hand, it is almost impossible to make any change in the society without the government’s approval. Most organizations in Singapore were established by the government. Thus, it was difficult to find a real NGO under the meaning of ‘non-governmental’ organization.
The case of NGO in the Singapore tourism industry is about the long-standing organization called the National Association of Travel Agents Singapore (NATAS). NATAS was founded in 1979 by the merging of two organizations: the Association of Travel and Tourism Association which was initially founded as the Singapore Travel Agents Association in 1958 and the Singapore Society of Travel Agents which initially founded in 1970. Nowadays, it represents more than 400 voices of Singapore’s travel agent industry (World Tourism Alliance Secretariat, 2017; NATAS, N.D.)
NATAS positions itself as a non-governmental organization. Even though it represents the tour agents, it does not run any business activities such as tour packages or selling airlines ticket by itself. The objectives of NATAS as shown on their official website were summarized in three points below:
1. To promote cooperation, understanding, and companionship among members 2. To represent members in the negotiation and to help the relevant governmental
organization about the industry
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3. To make the public familiar with members of NATAS and ensure the competence and integrity of them with the membership status
Aiming to reach its objectives, NATAS organized activities related to the Singapore tourism and Singaporean travel agents such as two annual travel fairs, annual scholarship award, sports activities for members, or training seminars for members (NATAS, N.D.) Every activity it held seemed to help NATAS gain more credibility.
In 2016, NATAS and STB cooperated in producing the Travel Agent Roadmap to enhance the travel agents to go beyond just ticket distributors. Following the roadmap, NATAS founded a Business Transformation Committee to help agents on transforming themselves to become designers of travel experiences while STB established Business Improvement Fund and Experience Step-Up Fund to support travel agents (Elliott, 2016). Since then, there are more than 90 projects that happened with the support from the Business Improvement Fund (Lee, 2018).
The cooperation is still ongoing. In March 2017, they published the Travel Agent Onboarding Guide as a supplement for the Travel Agent Roadmap (Singapore Tourism Board, N.D.b).
The latest update on their work is in 2018. NATAS, STB, and FinLab launched the three-month program to advance travel agencies through digital technology. There were four travel agents selected to join this pilot program: EU Holidays, Pegasus Travel, Royal Wings, and
The latest update on their work is in 2018. NATAS, STB, and FinLab launched the three-month program to advance travel agencies through digital technology. There were four travel agents selected to join this pilot program: EU Holidays, Pegasus Travel, Royal Wings, and