Michael Issenberg;

Chairman and COO, Accor Asia Pacific;

Ladies and Gentlemen;

Good morning.

I am pleased to be here for the opening of Singapore’s first internationally branded economy hotel.And, I congratulate ibis on its opening at an opportune time.

Offering diverse accommodation to meet travellers’ needs

1. I say opportune because even in these challenging times, there are interesting opportunities.In particular, ibis will appeal to travellers seeking greater value in their accommodation choices especially in the current climate.Travellers are likely to switch from long-haul travel to shorter haul holidays as they seek to maximise value from their travel budget.An international economy hotel brand like ibis will be able to tap on this higher intra-regional traffic and offer value-for-money quality accommodation without compromising on comfort and support facilities, such as a business centre, restaurants, bar, and free WiFi internet access.

2. ibis’ presence will also add diversity to our quality accommodation options and bring greater value to Singapore as a tourist destination.Singapore, as a regional business, MICE and leisure hub, has seen a growing demand for value-driven accommodation, with occupancies for economy and mid-tier hotels averaging over 80% for the past two years.ibis' presence in Singapore's top inbound markets, such as Indonesia, Australia, China and India, also means that our visitors from these markets will have yet another accommodation option in Singapore that they recognise and trust.

Tourism in Singapore: A Growth Sector

3. 2009 will be a challenging year for the global travel industry.The Singapore Tourism Board (STB) has forecasted a fall in visitor numbers to between 9 and 9.5 million. Tourists’ spending is also expected to be lower, at about S$12 to S$12.5 billion.

4. While the immediate outlook is a sober one, our tourism industry has the advantage of responding from a position of strength. We hit a record high S$14.8 billion in tourism receipts last year. It is a testament to the strength of Singapore’s tourism brand and value proposition. Visitors to Singapore stayed longer and spent more in 2008.

5. The opening of ibis joins a strong pipeline of upcoming projects that will keep visitors coming back to Singapore – the two integrated resorts, the International Cruise Terminal, the River Safari, the National Art Gallery, the Gardens by the Bay, a rejuvenated Orchard Road with three new shopping malls - all scheduled for completion in the near future.

6. These new entries to the tourism scene will add to the diversity and strength of Singapore’s tourism offerings. With them come new job opportunities even in the current environment.In 2009, tourism will create an estimated 12,000 new jobs, in hotels, the integrated resorts and other tourism-related sub-sectors.

Confidence in the Hospitality Sector

7. We are also seeing growth in the corporate business functions of the hospitality sector.Accor’s relocation of its regional headquarters to Singapore is one such example, joining other leading hotel players such as Starwood, Hilton, Four Seasons, and the Intercontinental Hotel Group, who continue to locate, manage and grow their regional operations from Singapore.Singapore is indeed privileged to be the regional base for these global companies.

8. The confidence demonstrated by these continuing investments stem from the value proposition that Singapore offers. Singapore’s strategic location, pro-business environment,excellent connectivity, safe and efficient network, and our vibrant living environment are factors that make us attractive to visitors and businesses.

Building On Opportunities to Strengthen Tourism

9. We must continue to leverage on these strengths by pressing on with efforts to seek out opportunities and to build our capabilities to increase our competitiveness and appeal as a destination.

10. STB recently announced the S$90 million BOOST initiative for the tourism industry – BOOST standing for Building On Opportunities to Strengthen Tourism.The Government has also recently announced a slew of initiatives that our hospitality sector can tap on to help them tide over this period of economic uncertainty. They include measures such as the enhanced tax deduction for renovation and refurbishment expenses and the S$100 million GEMS-Plus Program to encourage service excellence.I urge the industry to make full use of these measures to build capabilities and strengthen Singapore’s tourism sector in preparation for the upturn.

Conclusion

11. I would like to take this opportunity to thank Accor for its confidence in, and for its continued commitment to, Singapore - both by the relocation of the Accor regional headquarters here, as well as the introduction of ibis.I wish you the very best with your ventures in Singapore and beyond.

12. Ladies and Gentlemen, it is my pleasure to declare the ibis Singapore on Bencoolen officially open.

Thank you.