SPEECH BY MR LIM HNG KIANG, MINISTER FOR TRADE AND INDUSTRY, AT THE TOURISM INDUSTRY NIGHT ON THURSDAY 26 JANUARY 2006 AT 7:45 PM AT MINISTRY OF SOUND, CLARKE QUAY

Distinguished Guests

Ladies and Gentlemen

Good evening,

Introduction

I am pleased to join all of you in celebrating the achievements of the tourism sector in 2005. I also wish to take this opportunity to share with you some of the exciting developments ahead.

Tourism Sector’s Performance in 2005

The tourism sector performed well in 2005. It generated an estimated S$10.8 billion in tourism receipts, registering a growth of 10% over 2004. This exceeded STB’s target of S$10.4 billion. Singapore also received a record 8.94 million visitors last year, a growth of 7% over 2004.This surpassed STB’s target of 8.9 million visitors.With the average length of stay increasing from 3.2 days to 3.4 days, our total visitor days achieved double-digit growth of 14% to reach 30.6 million days.The hotel sector also performed well.Average Occupancy Rate was a healthy 84% and hotel room revenue posted double-digit growth of 15% to reach S$1.2 billion.

Singapore was voted the “FavouriteBusinessCity” by Asian readers of TIME Magazine, and the “BestBusinessCity in the World” by readers of the Business Traveller Asia-Pacific magazine for the fifth year running.These accolades reflect our attractiveness as a destination.

I would like to congratulate all of you for these achievements.They would not have been possible without your strong commitment and contributions.

Tourism 2015 – A Review of 2005

Last year, we launched Tourism 2015.We set bold targets of tripling tourism receipts to S$30 billion and doubling visitor arrivals to 17 million by 2015.A S$2 billion Tourism Development Fund was set up to catalyse and support private sector initiatives to spur the growth of the tourism industry.

We achieved important milestones in many areas.We showcased Uniquely Singapore to the world at the World Expo 2005 in Aichi, Japan.Singapore was the location for Krrish, the first mega Indian movie to be filmed in Singapore under the “Film in Singapore!” Scheme.Singapore also hosted many major international events such as the 117th International Olympics Committee (IOC) session and the International Textile and Machinery Association (ITMA) Asia Exhibition. We also took part in the Clipper Round-the-World Race, with 21 Singaporeans onboard the Uniquely Singapore clipper, acting as tourism ambassadors and showcasing Singapore to the world.This is the first time that Singapore is a destination on the race route and the ten teams just stopped over here last week.

In 2005, China and India were our second and fifth largest visitor arrivals markets respectively.We recognise their importance as key markets for Singapore, and expanded our international presence by opening new regional offices in New Delhi and Beijing.

We are also transforming Singapore into a vibrant and exciting destination.Last April, the government approved the development of two Integrated Resorts (IRs) – one at MarinaBay, the other at Sentosa.The Request for Proposals (RFP) for the IR at MarinaBay was launched in November last year. We look forward to receiving strong proposals when the RFP closes on 29 March.

We marked another milestone last year with the groundbreaking ceremony for the Singapore Flyer observation wheel. When completed in 2008, it will add to the cluster of iconic attractions around MarinaBay. We are also moving ahead with the remaking of Orchard Road and the rejuvenation of the SingaporeRiver into a vibrant 24-hour precinct. In addition, the opening of Crazy Horse Paris and Ministry of Sound at Clarke Quay have added more colour to Singapore’s entertainment scene

Transforming Singapore in 2006

Riding on the momentum, STB’s targets for 2006 are S$12 billion in tourism receipts and 9.4 million visitor arrivals.

We have already embarked on many exciting plans.The second phase of the Uniquely Singapore campaign has just been unveiled.It showcases what “Uniquely Singapore” means to each individual visitor.We will soon launch a MICE (Meetings, Incentives, Conventions and Exhibitions) marketing campaign that will raise Singapore’s profile as a premier MICE destination.We are gearing up to welcome international delegates for the 2006 Annual Meetings of the Boards of Governors of the International Monetary Fund and the World Bank Group in September.We are also preparing to launch the RFP for the Sentosa IR in the first quarter of 2006, and plan to award the Marina Bay IR by mid-year.

We will attract more exciting brands and events to Singapore to add to our nightlife and entertainment scene.24-hour integrated entertainment outlets will be opening soon at St James Power Station and The Cannery at Clarke Quay.These developments will greatly enhance the variety of entertainment offerings for our visitors

We must continue to seize opportunities to anchor transformational tourism projects in Singapore. STB will focus its efforts on attracting major tourism investments from around the world to realise the Tourism 2015 vision.The S$2 billion Tourism Development Fund will be used to facilitate such projects to transformSingaporeinto a compelling destination.

At the same time, we must also continually improve our tourism workforce and service standards as well as ensure sufficient hotel capacity to support the growth of the tourism sector.

Conclusion

In closing, let me thank all of you again for your efforts and contributions.Your commitment, support and partnership are crucial to the success of our tourism sector.We have a Unique Opportunity ahead of us – to transform Singapore into an exciting and compelling destination and achieve our Tourism 2015 vision.

Thank you.