SPEECH BY MR S ISWARAN, SENIOR MINISTER OF STATE FOR TRADE & INDUSTRY AND EDUCATION, AT THE OFFICIAL OPENING OF PARK HOTEL CLARKE QUAY ON SATURDAY, 8 AUGUST 2009, 1925 HRS AT PARK HOTEL CLARKE QUAY POOLSIDE

Mr Raymond Law, Chairman of Park Hotel Group

Mr Allen Law, Director of Park Hotel Group

Ladies and Gentlemen

A very good evening to all

Introduction

It is my pleasure to join you this evening for the opening of the Park Hotel Clarke Quay.

Singapore tourism today

We started the year with uncertain tourism prospects arising from the global economic downturn. Visitor arrivals to Singapore were affected with most markets registering a decline. Travel sentiment was further dampened by the Influenza A H1N1 episode. Not surprisingly, we saw an overall decline of 13.5 per cent in tourism receipts from January to June this year compared to the same period last year.

Moving forward, it is heartening that we are starting to see some signs of recovery. We have seen growth in visitor arrivals from Philippines, Malaysia and Germany, and even double-digit growth from Vietnam from January to June this year.

The STB’s year-long marketing campaign, “2009 Reasons to Enjoy Singapore”, has gained traction in the key target markets.STB will intensify its efforts under the campaign to drum up interest among travellers to visit Singapore for the rest of the year. To further enhance our proposition as a value-for-money destination and to reach beyond leisure travellers, the “2009 Reasons to Meet in Singapore” marketing campaign was launched in May this year to encourage business travel to Singapore. These two campaigns are effective tools to promote Singapore’s rich spectrum of business and leisure offerings.

In the coming months Singapore can look forward to a host of exciting events and festivities that will enhance Singapore’s existing tourism offerings. In September, Singapore will host our second FORMULA 1 night race, along with the first-ever F1 ROCKS™. Designed to complement the FORMULA 1TM night race, F1 ROCKS™ will make its international debut in Singapore as part of the Singapore GP Season. It aims to be a mega-concert featuring the likes of international pop stars such as Beyonce and the Black Eyed Peas.The performances of these artistes, coupled with others such as Chaka Khan and the band Travis, to name a few, will certainly inject more buzz to the traditional F1 race.Towards the end of the year, we can also look forward to favourites like ZoukOut, Christmas in the Tropics and the Marina Bay Countdown.

With these efforts, STB is confident of meeting the forecast of 9 to 9.5 million visitors and $12 to $12.5 billion in tourism receipts.

Medium to long-term prospects remain positive

The medium to long-term outlook also remains positive. Low cost carriers are expanding in the region.The liberalisation of air travel has led to a greater number of flights to Singapore which, in turn, open new source markets. Tour operators and airlines are also offering highly competitive prices to attract visitors.

More importantly, Singapore is also continually augmenting its tourism appeal. Singapore will be in the international spotlight when Marina Bay Sands and Resorts World at Sentosa open. In addition, the completion of the new International Cruise Terminal at Marina South by end 2011 will enhance Singapore’s cruise passenger throughput capacity to 1.6 million by 2015.These, together with other upcoming tourism offerings such as Gardens by the Bay and the River Safari, will offer a myriad of new experiences for visitors.

Confidence in Singapore’s tourism potential

It is no surprise therefore that Singapore is still viewed as an attractive destination for tourism investments – we have a rich regional and international source market to tap, complemented by a pro-business environment, excellent connectivity and stability. Indeed, according to the World Economic Forum[1], Singapore is the highest-ranked country in Asia in terms of the attractiveness of its environment for developing the travel and tourism industry.

The Park Hotel Group’s decision to anchor its operations here, while developing new assets such as Park Hotel Clarke Quay also echoes this confidence. In addition to the Park Hotel Clarke Quay, I understand that the Group, which moved its headquarters to Singapore in 2005, has since acquired two hotels in Singapore – the Grand Park Hotel Orchard which will be opened next year, and GrandParkCity Hall. There are also ongoing development plans by the Group to launch Knightsbridge, a brand new retail concept encompassing over 80,000 sq ft of flagship retail stores of international brands, at the rebranded Grand Park Orchard by next year.

Hotel developers such as the Park Hotel Group have recognised and are preparing themselves for the opportunities that lie ahead. In addition, several other new hotels are being added to our hospitality sector, such as the upcoming Fullerton Bay Hotel at Collyer Quay, and the recently opened Capella Singapore, Quincy, Ibis at Bencoolen, and klapsons The Boutique Hotel.

Diverse accommodation options

All these hotels will add to the diversity of accommodation options in Singapore for the discerning traveller. The Park Hotel Clarke Quay, situated in the heart of the city and just a stone’s throw from attractions such as the museums, the Singapore Flyer and the business district, will serve well the needs of both leisure and business travellers. The hotel is also an excellent complement to the SingaporeRiver precinct which is one of the city’s 24-hour entertainment zones.

Conclusion

By anchoring its HQ here and the opening of Park Hotel Clarke Quay today, the Park Hotel Group has underscored its commitment to Singapore.It is also a testament to Singapore’s appeal as an investment location as well as a tourism destination. In today’s competitive global environment where success is all about identifying and seizing opportunities, it is astute of the Park Hotel Group to recognise the business potential in the tourism landscape of Singapore and the region.

I would like to congratulate the Park Hotel Group and its management on its latest development and look forward to a long and close partnership between the Group and Singapore. I now have great pleasure in declaring the Park Hotel Clarke Quay officially open.

Thank you.